Newly obtained DVLA data has revealed that over the past six years, a staggering 3,067,124 vehicles have been written off by insurers in the UK. This information was obtained through a Freedom of Information request by claims management company Allegiant Finance Services, and highlights the concerning trend of unfairly low write off payments being received by many consumers.
According to the data, 562,185 vehicles were recorded as written off in 2024 alone, which amounts to a car being written off every minute. This is a significant increase of 46% since 2017, indicating a worrisome trend in the insurance market.
While the number of write-offs was temporarily reduced during the Covid lockdowns in 2020 and 2021, the subsequent rebound has raised concerns about the sheer volume of vehicles being deemed uneconomical to repair by insurers. Despite this, Allegiant Finance Services has found that the insurance market has not taken heed of the Financial Conduct Authority’s (FCA) warning in December 2022 that insurer settlement offers for written off vehicles are often lower than the vehicle’s fair market value.
Stephen Griffiths, Head of Product at Allegiant Finance Services, stated, “We carefully monitor Financial Ombudsman decisions and use advanced vehicle valuation technology to determine fair market value. While some insurers are doing the right thing, we are seeing concerning signs that not all insurers have fully taken on board the FCA’s warning about undervaluation. This is simply unacceptable and motorists are being ripped off too often.”
These revelations have nationwide implications, affecting millions of drivers, and have prompted Allegiant to call for renewed scrutiny of historic settlements. Griffiths further explained, “Motorists can make a claim themselves to the insurer and refer it to the Financial Ombudsman Service for free if it is not resolved. We advise anyone making a claim to obtain full details of how the valuation was calculated by the insurer and consult trade guides that provide historic valuation insights. Alternatively, we offer a service that deals with this for consumers, with a fee only payable if we secure compensation.”
In light of this latest research, Allegiant is urging motorists to review the adequacy of their written off vehicle insurance payouts, especially given the increasing prevalence of vehicles being written off. For more information and guidance on making a claim, Allegiant has released a free consumer guide which can be found on their website.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.