An investigation by consumer organisation Which? has found that 5% of motor insurance claims are partly or fully rejected by insurance companies, often for obscure reasons buried in the policy small print.

The report also says there were many cases where insurers settled claims 50/50, even when the driver believed they had strong evidence that a car accident was not their fault. Settling the claim in this way means the driver will face paying an excess and the possibility of losing their no-claims bonus.

Which found the situation to be even worse in the home insurance sector where 12% of claims are being rejected. Some of the extreme reasons given here include, an insurer who would not pay for the contents of a freezer without a receipts and a claim refused because a householder had not regrouted their bathroom tiles every year.

New Financial Conduct Authority in the UK announced a review into the insurance market earlier this year.