The Financial Ombudsman Service (FOS) publishes detailed complaints data twice yearly and in its annual review, covering complaint volumes received and resolved by product category, the proportion upheld in the consumer's favour, and individual firm-level data for the largest complaints-receiving firms. Motor insurance is one of the most complained-about financial products in the UK, reflecting the scale of the market - approximately 33.3 million insured cars on UK roads (DfT Q3 2025) and £21 billion in annual gross written premium (ABI 2024) - and the frequency with which claims disputes arise. The FOS was established under the Financial Services and Markets Act 2000 (FSMA 2000) and operates as a statutory scheme. Its decisions are binding on FCA-authorised firms up to the award limit of £430,000 (for complaints referred after 1 April 2019), though consumers retain the right to reject a FOS decision and pursue the courts. This article explains what the FOS data shows about motor insurance complaints, what the most common dispute types are, and how the escalation process works. For claims guidance, see how to claim car insurance after an accident. For market overview, see the car insurance hub. FOS complaints data - the headline figuresThe FOS publishes its complaints data by product type. Motor insurance (private car) sits within the general insurance product grouping. The FOS data shows the following consistent patterns for motor insurance complaints:
Note: FOS publishes firm-level upheld rates for the largest complaints-receiving firms twice yearly. Individual firm rates vary significantly. Check the FOS website (financial-ombudsman.org.uk/data-and-research) for the most current firm-specific data. Most common motor insurance complaint types at FOSThe FOS categorises complaints by dispute type in its published data and case studies. For motor insurance, the most frequently recurring dispute categories in FOS published data and decisions are:
FOS complaint volumes - year-on-year trendThe FOS publishes half-yearly complaints data through its online data tool at financial-ombudsman.org.uk/data-and-research. Motor insurance complaint volumes fluctuate with market conditions. The period of sharply rising premiums in 2023-2024 - documented in ABI data showing the average rising to £741 - coincided with an increase in FOS motor insurance complaints, consistent with consumer dissatisfaction at renewal shock and claims settlement disputes. The directional picture from FOS data:
What this means for UK driversThe FCA's Dispute Resolution rules (DISP, in the FCA Handbook) require all FCA-authorised insurers to operate a formal internal complaints process. An insurer must acknowledge a complaint promptly and issue a final response within 8 weeks. If a consumer remains dissatisfied after receiving the final response (or after 8 weeks without one), they can refer the complaint to the FOS free of charge. The FOS has the power to award up to £430,000 and can direct the insurer to take remedial action including paying interest on delayed settlements. The FCA's Consumer Duty (PS22/9), which came into force in July 2023, introduced a higher standard of consumer outcomes that directly affects how insurers must handle claims and complaints. Under Consumer Duty, insurers must demonstrate that their products and services deliver good outcomes for retail customers. The FCA has indicated it will use FOS complaint uphold rates as one indicator of Consumer Duty compliance in its supervisory work. Drivers selecting an insurer can check FOS upheld rates at financial-ombudsman.org.uk/data-and-research to compare complaint outcomes across firms. A consistently high uphold rate (proportion of complaints decided in consumers' favour) may indicate systemic claims handling issues at a specific insurer. For claims guidance, see our how to claim car insurance guide. For comparing policies, see how to compare car insurance UK 2026. For insurer reviews, see Admiral car insurance review and Direct Line car insurance review. Methodology - how we sourced this data
We refresh this article when the FOS publishes its next half-yearly complaints data bulletin. Frequently Asked QuestionsHow do I complain about my car insurer?Start by using your insurer's formal internal complaints process - every FCA-authorised insurer must have one. Submit your complaint in writing, referencing your policy number, the specific issue and what outcome you want. The insurer must respond within 8 weeks (FCA DISP 1.6). If you are unhappy with the final response, or if 8 weeks pass without one, you can refer the complaint to the Financial Ombudsman Service (financial-ombudsman.org.uk) free of charge. What is the FOS award limit for car insurance?The FOS can award up to £430,000 for complaints referred on or after 1 April 2019. This limit was raised from £150,000 in April 2019 and covers both financial loss and distress/inconvenience awards. The FOS can also direct insurers to take non-financial remedial action such as reinstating cover, reprocessing a claim, or providing an apology. The FOS award is binding on the firm if the consumer accepts it. What proportion of car insurance complaints does FOS uphold?FOS upheld rates for motor insurance complaints vary by firm and period. The FOS publishes half-yearly data showing the proportion of complaints resolved in the consumer's favour for each major insurer. Across the motor insurance market, upheld rates for motor complaints have generally ranged between 30% and 45% in recent years, though individual firm rates vary significantly. Access firm-specific data at financial-ombudsman.org.uk/data-and-research. Can the FOS overturn an insurer's decision to reject a claim?Yes. The FOS reviews the insurer's decision against the applicable policy terms, relevant law (including the Consumer Rights Act 2015 and Consumer Insurance Act 2012), and FCA rules. If the FOS determines that the insurer's decision was unreasonable or that a policy exclusion was applied unfairly, it can direct the insurer to pay the claim, increase a settlement, or take other remedial action. The FOS applies a fairness standard rather than a strictly legal standard in its assessments.
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UK Car Insurance Complaints 2026: Financial Ombudsman Data Analysis
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