When the consumer champion surveyed more than 4,700 car insurance claimants, it found that nearly two-fifths (39%) of respondents had to chase their insurer to progress their claims.
Delays during the claims process were one of the main drivers of a rise in customer complaints about car insurance firms, according to the Financial Ombudsman Service (FOS).
The FOS findings echo Which?’s research into FOS insurance complaint decisions, which found that more distress and inconvenience was caused during complaints related to claim delays than any other type.
LV and NFU Mutual come out on top
Which? asked customers to rate their provider for the speed at which it dealt with their insurance claim.
Both LV and NFU Mutual received five stars from claimants. But about a third of the 19 firms rated were awarded just two stars out of five. This suggests many firms are prolonging the ordeal of making a claim for motorists.
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The six insurers finishing bottom of the pile with two stars were 1st Central, Admiral, Age Co, Ageas, Esure and RAC.
To make matters worse, the speed of handling claims was not the only issue for poorly rated firms.
For settlement value – how much the insurer settled claims for – many insurers earned just two stars, with only NFU Mutual receiving five stars.
Which? pointed out that the Financial Conduct Authority (FCA) has repeatedly warned car insurers not to make unfairly low settlement offers in claims where a cash settlement is offered to replace the vehicle in total loss claims.
But based on the results of Which?’s survey, it may be the case that some insurers have yet to up their game and offer claimants settlement sums they feel satisfied with.
Communication issues
The majority of insurers also fell down when it came to providing regular communication updates on how claims were progressing.
Again, NFU Mutual led the way with four stars, while Aviva, Direct Line, Lloyds Bank and LV were awarded three stars. However, the rest (14) received just two stars for this.
The majority of insurers also received two stars when claimants fed back on how well different parties (e.g., insurers, repairers and claims-handling companies) had worked together to resolve their claim.
Ageas, Age Co, Esure and RAC only scored two out of five stars in each of these individual service areas.
The same four companies were rated worse overall in Which? analysis that rates how satisfied claimants are overall with their insurer, and how likely they would be to recommend it, based on how it handled their claim.
Jenny Ross, editor of Which? Money, said: “Consumers only find out how good their insurer is when it comes to making a claim. Delays during that process can make an often stressful situation worse.
“Whether it’s a bump or scratch or completely written-off vehicle, drivers will rightly expect to see their claim dealt with efficiently. However, our research shows that some firms are stuck in reverse.
“It’s crucial that the regulator monitors how well firms handle claims, taking enforcement action against those found to be falling short.”
Related: Government task force set up to halt ‘spiralling’ car insurance costs
