Direct Line ordered to review five years of car claims after underpayments

Insurer told to reassess vehicle write-offs to identify any unfair settlements

Britain's second-biggest car insurer, Direct Line, has been ordered to go back through five years of claims after admitting it had underpaid some customers who had their cars and vans written off.

After an investigation into the car insurance market that began in December 2022, the Financial Conduct Authority (FCA), this week ordered Direct Line to conduct a review of claims where vehicles had been written off to identify any policyholders who received unfair settlements and provide them with appropriate redress".