Motor Complaints at the Ombudsman Are Up 12% – How to Avoid a Claims Nightmare

It’s a scenario none of us want to imagine. You’re driving along, perhaps thinking about what’s for dinner or that meeting you just finished, and then – crunch. A minor bump, a scraped wing, or a more serious collision. Once the initial shock wears off, your first thought is usually, "Thank goodness I have insurance."

But for an increasing number of UK drivers, the relief of having a policy is being replaced by the frustration of a difficult claims process. Recent data from the Financial Ombudsman Service (FOS) has revealed a bit of a worrying trend: complaints about motor insurance are on the rise. In the first quarter of 2026 alone, there were 3,519 new complaints brought to the ombudsman regarding car and motorcycle insurance. That’s a jump of almost 12% compared to the same period last year.

It seems motor insurance has officially taken the top spot as the most complained-about insurance product in the UK. But it’s not all doom and gloom. Interestingly, the "upheld rate" – that’s the percentage of cases where the ombudsman agreed with the customer – sat at around 34% across the board. While that’s an improvement in some areas, it still means that thousands of drivers are finding themselves in a "claims nightmare."

So, how do you make sure you don’t become another statistic? At T&R Direct, we believe that being informed is your best defence. Here is our guide on how to navigate the claims process smoothly and, more importantly, how to set yourself up for success before you even turn the key.

Why the sudden spike?

You might be wondering why more people are feeling the need to complain. It’s a bit of a perfect storm, really. Modern cars are incredibly complex – full of sensors, cameras, and specialist parts that make repairs more expensive and time-consuming. Add to that the general cost-of-living pressures, and it’s no surprise that both insurers and customers are feeling the pinch.

Sometimes, the issue is a simple misunderstanding of what’s covered. Other times, it’s a delay in repairs or a dispute over the "market value" of a written-off vehicle. Whatever the reason, the best way to avoid a headache is to be prepared.

Document everything (and we mean everything)

If you are involved in an incident, your smartphone is your best friend. In the heat of the moment, it's easy to forget details, but the ombudsman often relies on cold, hard evidence.

Make sure you:

• Take clear photos: Get shots of the damage to your car, the other vehicle, and the surrounding road conditions.
• Capture the scene: Are there skid marks? Obscured road signs? A cheeky pothole that contributed to the slip? Document it all.
• Exchange details: Get the name, address, phone number, and insurance details of the other driver.
• Witnesses: If anyone saw what happened, ask for their contact details. A neutral third-party account can be gold dust during a dispute.

It’s also worth considering a dash cam. They’ve become much more affordable recently, and having video footage of an incident can often settle a claim before it even reaches the stage of a formal complaint.

Know your policy before you need it

It sounds obvious, but you’d be surprised how many people only look at their policy documents for the first time after an accident. We know – reading insurance fine print isn't exactly a thrilling Friday night activity – but it's essential.

Take a moment to check:

• Your Excess: Are you clear on how much you’ll have to pay out of your own pocket? Remember, there’s often a "voluntary" excess and a "compulsory" one added together.
• Exclusions: Does your policy cover you for "social, domestic, and pleasure" only, or does it include commuting? If you’ve started using your car for a new job or a side hustle, staying safe and saving money means making sure your cover matches your reality.
• Courtesy Cars: Don't assume you'll get a replacement vehicle while yours is in the shop. Check if it’s a guaranteed part of your policy or an optional extra.

If you’re unsure about the terminology, we’ve put together a handy guide on checking the small print that might help clear things up.

Choosing the right level of cover

Sometimes, the cheapest quote isn't the best value. The ombudsman often sees complaints from people who thought they had "Fully Comprehensive" cover, only to find out they weren't covered for specific things like personal belongings stolen from the car or windscreen damage.

When you're looking for the right cover, think about your specific needs. Are you a high-mileage driver? Do you park on a busy street or in a secure garage? If you're a business owner or a freelancer, you might even need specialised commercial insurance depending on how you use your vehicle.

Check the insurer’s reputation

Before you sign on the dotted line, it’s worth doing a little bit of homework. While every insurer will have some complaints (it’s a high-volume industry, after all), you can look for patterns. The FOS publishes data on how different firms handle complaints and how often their decisions are overturned.

If an insurer has a consistently high "upheld rate" against them, it might suggest they are being a bit too stringent with their claims handling.

The T&R Direct difference

This is where we come in. At T&R Direct, we don’t just work with one insurance company. We have a panel of leading UK insurers that we source quotes from. This means we can help you find a policy that isn't just a "good price," but actually offers the protection you need.

We’ve seen it all – from the bizarre house insurance claims to the standard motorway bumps. Our goal is to make sure you’re with an insurer that treats you fairly if things go wrong. Because we work with a wide range of providers, we can often find specialist cover for drivers who might struggle elsewhere – whether you’re a landlord with a fleet of vehicles or a musician needing band insurance for your gear on the road.

Practical takeaways for a stress-free claim

If you do have to make a claim, here are a few final tips to keep the process on track:

1. Be honest: Never be tempted to "tweak" the truth about how an accident happened. Inaccuracies are the fastest way to get a claim rejected and potentially find yourself blacklisted by insurers.
2. Keep a log: If you call your insurer, make a note of the date, time, and who you spoke to. Keep copies of all emails and letters.
3. Don't wait: Report incidents as soon as possible. Many policies require you to notify the insurer within 24 or 48 hours, even if you don't intend to make a claim.
4. Ask for a breakdown: If your insurer offers a settlement figure you think is too low, ask them how they reached that number. They should be able to provide evidence of similar vehicles for sale in your area.

The rise in complaints to the ombudsman is a reminder that the insurance world can be tricky. But by doing a bit of prep work and choosing your policy wisely, you can stay on the road with confidence.

If you’re looking for a fresh quote or just want to see if you can save on your current premium, why not get in touch with us today? We’re here to help you find the right cover at the right price, without the nightmare.