Complaints about car, motorbike and buildings insurance are rising as insurers delay paying out claims.
Car and motorbike insurance was the third most complained-about financial product in 2022/23, with buildings insurance in fifth place, according to the Financial Ombudsman Service.
The FOS said it logged 11,851 car and motorbike insurance complaints in 2022/23, a 30 per cent rise on the previous year.
The ombudsman said this ‘was largely due to insurers delaying paying out on claims’.
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A FOS spokesperson added: ‘These delays were largely due to parts not being available, as well as staff shortages at repairers.’
Other reasons for car insurance gripes included insurers throwing out claims for cars stolen by deception, such as relay thefts.
Car insurance premiums have risen by 16 per cent in a year, as insurers say they are forced to pass on the soaring cost of repairs.
For example, the energy bills of car repairers have risen by 300 per cent, with the cost of paint and parts up by 16 per cent.
The FOS also logged more complaints about valuations – the price insurers pay to the owners of damaged or wrecked vehicles.
These quibbles rose from 1,543 in 2021/22 to 1,820 in 2022/23.
Last year the Financial Conduct Authority regulator warned insurers not to undervalue cars, and said it was watching the problem closely.
The FOS logged 6,497 complaints about buildings insurance in 2022/23, up 33 per cent on the year before.
The ombudsman’s spokesperson said this rise was due to an ‘increase in disputes about declined claims and delays as well as claim values’.
FOS chief executive Abby Thomas said: ‘Over the past year, the FOS continued to help hundreds of thousands of customers who had problems with financial businesses on issues across banking, lending, insurance and investments.’
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