Insurers undervalue wrecked vehicles, ombudsman claims

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Complaints to an ombudsman about motor insurance rose by 29% last year - with key gripes including valuations of written-off vehicles.

There were 7,238 inquiries to the Financial Ombudsman Service in 2011.

The ombudsman has accused some insurance companies of valuing by trade price - the amount a dealer would pay - rather than retail price.

Catherine Burns reports.

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