Allegiant Write Off Fact Check
This page provides the evidence behind the statistics quoted on our car write-off claims service page. All figures are sourced from official data and can be independently verified.
£1,896 Average Undervaluation Identified by the Ombudsman
This figure is based on real Financial Ombudsman Service decisions where customers successfully challenged insurers’ valuations of written-off vehicles.
Where the £1,896 Figure Comes From
We analysed 139 upheld Financial Ombudsman Service decisions about car write-off valuations published between 1 January 2025 and 31 December 2025. Note – these are not claims made by Allegiant.
In each of these cases:
- The customer complained that their insurer’s valuation was too low
- The Ombudsman investigated and agreed the valuation was unfair
- The insurer was directed to increase the payout
The £1,896 figure is the mean average difference between the initial insurer settlement and the valuation directed by the Financial Ombudsman Service across all 139 upheld cases.
Understanding Our Methodology
Why we use the initial settlement figure: Our calculation compares the insurer’s original settlement offer against the Ombudsman’s final valuation – not any revised offer the insurer may have made after the customer challenged them directly.
This approach reflects the real-world position of customers who accept their insurer’s first offer without challenge. If those customers had done nothing, they would have received the initial settlement – meaning the true undervaluation is the full difference between that figure and what the Ombudsman determined was fair.
Understanding the Data
Our full case data table includes the following information for each decision:
- FOS decision – Search the DRN-number on the FOS website
- Insurer – The insurance company that handled the original claim
- Insurer’s initial valuation – The original settlement offer before any customer challenge
- Ombudsman’s fair valuation – The settlement figure the Ombudsman determined would be fair
- Top-up ordered – The additional amount representing the undervaluation
Important Context
Every case is different. These decisions are based on individual circumstances including vehicle model, age, mileage, condition, optional extras, market conditions, and specific policy wording. Top-up amounts range from modest sums to several thousand pounds.
The Ombudsman’s role. The Financial Ombudsman Service doesn’t operate a vehicle valuation service. They review evidence presented by both sides and decide what a fair settlement should have been, based on policy terms and available market data.
No guarantee of success. These are cases where customers won. Not all complaints succeed – outcomes depend entirely on individual circumstances and evidence. We present this data to demonstrate what’s possible when insurers get valuations wrong, not to promise any particular outcome.
£129 Million Already Paid to UK Drivers
The Financial Conduct Authority (FCA) has confirmed that insurers have already paid out £129 million to customers who were short-changed on written-off vehicle claims.
“Motor insurers have changed their settlement and compensation practices after the FCA found some insurers had short-changed customers on stolen or written off vehicle claims. It means that an estimated 270,000 motorists are expected to receive £200m in compensation for historic claims that were underpaid, breaching rules on handling claims fairly. Of this, £129m has been paid to date to almost 150,000 customers.”
Allegiant was not involved in this regulatory action or these payouts. However, the FCA’s findings confirm that undervaluation of written-off vehicles is a widespread, industry-wide problem – exactly the issue we help customers challenge today.
The Scale of Vehicle Write-Offs in the UK
3 Million Vehicles Written Off
Figures obtained via a Freedom of Information request to the Driver and Vehicle Licensing Agency (DVLA) confirm that over the last six years (2019–2024), more than 3 million vehicles (3,066,124) have been officially written off in the UK.
Yearly Breakdown
Year | Vehicles Written Off |
|---|---|
| 2019 | 556,418 |
| 2020 | 414,593 |
| 2021 | 449,737 |
| 2022 | 524,321 |
| 2023 | 559,870 |
| 2024 | 562,185 |
| Total | 3,066,124 |
These figures highlight the sheer scale of vehicle write-offs in the UK and raise legitimate questions about whether insurers are fairly compensating policyholders when their vehicles are declared total losses.
One Vehicle Written Off Every 60 Seconds
In 2024, 562,185 vehicles were written off. Dividing this by the total minutes in a year (525,600) gives approximately 1.07 vehicles per minute.
This confirms that the frequency of write-offs has officially surpassed the “one every 60 seconds” threshold.
Sources
- Ombudsman decisions: Published by the Financial Ombudsman Service at financial-ombudsman.org.uk
- FCA statement: Over 270,000 motorists to receive £200m in motor insurance compensation, Financial Conduct Authority
- Write-off statistics: Data from the Driver and Vehicle Licensing Agency (DVLA) obtained via Freedom of Information request
Previous Figure: £2,018 (2024 Analysis)
If you’ve previously seen us cite a £2,018 average, this section explains where that figure came from.
Where the £2,018 Figure Came From
We analysed 77 upheld Financial Ombudsman Service decisions about car write-off valuations published between 1 January 2024 and 1 September 2024.
In each of these cases:
- The customer complained that their insurer’s valuation was too low
- The Ombudsman investigated and agreed the valuation was unfair
- The insurer was directed to increase the payout
The £2,018 figure was the mean average of the additional amounts the Ombudsman ordered insurers to pay across all 77 upheld cases.
This figure has now been superseded by our 2025 analysis above, which covers a full calendar year and a larger dataset of 139 upheld decisions.
Vehicle Write Off Claim Fees
Allegiant’s No Win, No Fee Promise
We do not charge upfront fees. You would only ever need to pay a fee if your claim is successful and your insurer makes a compensation offer. If your claim is unsuccessful, there is no charge.
Our fees range from 18-36% including VAT, and depend on the amount of compensation you receive. You can find out more about this, including a potential fee calculator, here: https://allegiant.co.uk/insurance-claim-fees/
Our success fee is due only if your insurer makes a compensation payout, and is calculated on the amount of the compensation payout.
The success fee amount is calculated using a band charging system. There are five charging bands. Each band has a maximum amount that we will charge.
Success Fee Charging Table
| Band | Compensation Payout | Percentage rate the Success Fee is calculated on (including VAT) | Maximum Success Fee in band (including VAT) |
| 1 | £1 to £1,499 | 36% | £504 |
| 2 | £1,500 to £9,999 | 33.6% | £3,000 |
| 3 | £10,000 to £24,999 | 30% | £6,000 |
| 4 | £25,000 to £49,999 | 24% | £9,000 |
| 5 | £50,000 or more | 18% | £12,000 |
Below are examples of how this would work in practice.
| Lower example | Higher example | |||
| Band | Compensation Payout | Success Fee | Compensation Payout | Success Fee |
| 1 | £100 | £36 | £1,499 | £504 |
| 2 | £1,600 | £537.60 | £9,999 | £3,000 |
| 3 | £12,000 | £3,600 | £24,999 | £6,000 |
| 4 | £30,350 | £7,284 | £49,999 | £9,000 |
| 5 | £55,000 | £9,900 | £100,000 | £12,000 |
Please note that the examples in the tables are for illustration purposes only. They are not an estimate of the likely outcome or success fee.
Questions About This Data?
For further information about our methodology or the source decisions, please contact Stephen Griffiths (Head of Product) using the contact form below.