Advantage Insurance Company Limited · DRN-6209217

The complaint Mr R complains Advantage Insurance Company Limited has acted unfairly regarding his motor insurance policy. What happened Mr R took out motor insurance with Advantage in March 2025. Later the same month he reported a loss. Advantage declined the claim and cancelled the policy. Mr R was then stopped by the Police and found to be driving without insurance. Mr R complains about all that has happened, including the customer service he received from Advantage and its approach to his vulnerabilities. The Investigator considered what had happened and recommended the complaint should be upheld in part. I will summarise her findings as follows: • It was fair and reasonable for Advantage to decline the claim and cancel the policy under the terms of the policy. This was because of inconsistencies with the claim. In brief, Mr R said his car had been stolen, and then later he said it hadn’t been and had instead been in a collision. There were also concerns with the information presented, such as the full name of the passenger in his car not being known, and conflicting reports to the Police. • While it was fair and reasonable for Advantage to cancel the policy, its letters caused confusion about when the cancellation would take effect, which led, at least in part, to Mr R being stopped by the Police and his car being seized. She found Advantage’s reimbursement of the costs Mr R incurred and a letter explaining what had happened fairly put right the financial and legal impact but thought the £300 compensation it had offered Mr R didn’t fairly reflect the non-financial impact on him. • When Advantage cancelled the policy the outstanding premium for the year became due (about £1,350), and as Mr R didn’t pay it, this sum was referred to debt collections. Advantage has since agreed to write off this sum and remove any related collections activity/record, meaning Mr R won’t owe anything. The Investigator found this to be fair and reasonable as the sum was due under the policy terms. • Mr R is dissatisfied with the customer service he received, especially given his vulnerabilities. He says his needs weren’t considered fairly, he was treated poorly/rudely and promised call backs weren’t made. The Investigator reviewed call records and listened to a recording of the main call Mr R had referred to. While she considered the customer service could have been better at times, she didn’t identify any substantial failings. Overall, the Investigator recommended the complaint should be upheld in part and said Advantage should pay Mr R £700 compensation in total. Advantage accepted the Investigator’s recommendation. Mr R, despite consistent contact prior, hasn’t responded to accept or reject the Investigator’s recommendation. So, to bring a resolution to this now long-standing dispute, the complaint has been passed to me to decide.

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What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint. I agree with the Investigator’s recommended outcome, and her reasons for it, and have nothing material to add. Advantage’s decision to decline the claim and cancel the policy was fair and reasonable given the inconsistencies and other concerns. There was confusion over the date of cancellation, but Advantage remedied that by ensuring Mr R is not out of pocket and providing a letter to present to the Police/Courts explaining what had happened. Compensation is appropriate. Being stopped by the Police and having his car seized would have been distressing for Mr R, and inconvenient. I also find the customer service, while broadly satisfactory, could have been better at times. But Advantage has offered to write off a large sum of money, pay Mr R £700 compensation in total, and hasn’t asked him repay storage and recovery costs to do with the declined claim. I find that’s fair and reasonable in the circumstances. It follows I won’t be requiring Advantage to pay Mr R more. My final decision I uphold this complaint and require Advantage Insurance Company Limited to: • write off the full outstanding balance of £1,335.09, ensure any debt collection referrals are withdrawn, and have any associated credit markers removed; and • pay Mr R £700 compensation in total. Under the rules of the Financial Ombudsman Service, I’m required to ask Mr R to accept or reject my decision before 14 April 2026. James Langford Ombudsman

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