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Car Written off: Insurance Valuation Too Low
When a car is written off, the insurer should pay its market value: what it would have sold for at a reputable dealer just before the loss. The Financial Ombudsman compares offers with trade guides such as AutoTrader, CAP, Cazana and Glass's, and may tell the insurer to use the highest guide value if a lower offer is not supported by evidence.
At a Glance
Your Rights
What the rules say, with a link to the official source for each.
How Valuations Are Judged
Market Value
Market value is the price the vehicle would have sold for at a reputable dealership just before it was damaged or stolen. The Ombudsman compares valuations with guides such as AutoTrader, CAP, Cazana and Glass's. If the insurer's figure is not the same as or very close to the highest guide, and not backed by other evidence, it is likely to tell the insurer to use the highest value. Like-for-like adverts can be considered. source
Evidence and Salvage
Useful evidence includes engineer reports, valuations, repair estimates, evidence of any earlier damage and vehicle history. The Ombudsman does not think it fair to scrap a car without warning, and checks whether you asked to keep the salvage. source
Complaining
Complain to the Insurer First
You should first complain formally to the insurer. A business has 8 weeks to consider most complaints. If you have no final response within 8 weeks, or you are unhappy with it, you can refer the complaint to the Financial Ombudsman Service. source
6 Months to Go to the Ombudsman
You have 6 months from the date on the final response to refer your complaint to the Ombudsman. After that it usually cannot help, unless exceptional circumstances (such as serious ill health or bereavement) stopped you, the insurer did not send a valid final response, or the insurer agrees. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- 8 weeksInsurer's time to give a final response to a complaint8 weeks for most complaints
- 6 monthsRefer a complaint to the Financial Ombudsman ServiceWithin 6 months of the date on the insurer's final response
Steps to Take
Step 1 of 5
Ask the insurer how it worked out the figure, and which guides it used.
Step 2 of 5
Get your own valuations from the main guides, and like-for-like adverts.
Step 3 of 5
Gather service history and evidence of the car's condition and mileage.
Step 4 of 5
Complain in writing asking for the market value. We do not take insurance or banking complaints as cases, but our free letter templates can help you write to the firm.
Step 5 of 5
After 8 weeks, or a final response, go to the Financial Ombudsman Service.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
The Insurer's Complaints Team
Always start here, in writing.
Financial Ombudsman Service
After 8 weeks with no final response, or if you are unhappy with it. Refer within 6 months of the final response.
Good to Know
Small things that make your complaint stronger.
Tell the insurer early if you want to keep the car (the salvage).
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 13 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.