Automotive Business Magazine – Q2 2026 – Digital edition - Magazine - Page 76
WARRANTY HUB
Steph Newbery, group director at
Warranty Solutions Group (WSG),
talks wear, tear, downtime
and warranties
M
odern vehicles
are more
advanced, more
efficient and
more capable
than ever before
– but they are
also becoming
more expensive
to repair.
Drawing on live warranty
claims data recorded up to
February 2026, our analysis
reveals a consistent pattern
across ICE, EVs, motorcycles
and commercial fleets. While
catastrophic failures still create
headlines, it is the steady rise
in everyday repair costs that is
reshaping the cost of ownership.
ICE cars: Everyday faults
driving cost inflation
ICE vehicles remain the
dominant segment in the UK,
and repair cost inflation is now
structural rather than cyclical.
Average claim values rose
from £632 in 2024 to £679 in
2025, reflecting rising labour
rates, longer diagnostic times
and increased component
complexity. Electrical and
electronic faults now dominate.
Batteries account for 2.73%
of claims, with an average
repair cost of £284, while NOx
sensor failures represent 2.24%
of claims at nearly £795 per
repair. Alternator issues average
over £600, showing how routine
faults are steadily increasing
ownership costs.
At the other end of the
scale, catastrophic failures
are becoming increasingly
expensive, with individual
claims exceeding £13,000
in 2025, including complete
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AUTOMOTIVE BUSINESS
Q2 2026
engine failures and complex
transmission repairs.
The traditional assumption
that ICE vehicles become
cheaper to run as they age is
increasingly outdated. Instead,
rising labour intensity and
system integration mean that
even relatively modest faults
can escalate quickly in cost.
For dealers, this is changing
how vehicles are priced,
retailed and protected, while
for consumers it reinforces the
importance of understanding
total ownership costs.
EVs: Reliability strong,
repair severity rising
Electric vehicles are often
perceived as cheaper to
maintain, but WSG’s claims
data reveals a more nuanced
picture. The Nissan Leaf topped
reliability rankings with a
remarkably low claim rate of
just 1.52%, while models such
as the Audi E-Tron recorded
average repair costs as low as
£570. However, reliability varies
significantly across models, with
some premium EVs recording
claim rates exceeding 30%.
Contrary to common
perception, battery failures
remain rare. Instead,
suspension and auxiliary
systems dominate, with antiroll bar link failures alone
accounting for nearly 10% of
claims at an average repair
cost of £276. Air conditioning
compressor faults average
more than £1,200 per repair,
highlighting the cost impact of
integrated thermal systems.
EV ownership risk is moving
into a more mature phase.
Early concerns about battery
reliability are being replaced
by a deeper understanding of
wear-and-tear components,
electronic systems and repair
complexity. As adoption grows,
the key challenge for the
industry is shifting from selling
EVs to supporting sustainable,
long-term ownership through
transparent data and tailored
protection solutions.
The risk profile of vehicle
ownership is changing across
every segment of the market.
Vehicles are lasting longer and
becoming more sophisticated,
but that advancement is driving
higher repair costs, longer
labour times and greater
financial exposure once they
move beyond warranty.
For dealers, traditional
assumptions about affordability
and reliability are no longer
sufficient. Understanding
real-world claims data is now
essential when pricing vehicles,
structuring protection products
and managing expectations.
At the same time, consumers
are becoming more aware that
purchase price is only part of
the equation. They increasingly
want reassurance that
unexpected repair costs will not
undermine their investment.
As the market continues to
evolve, warranties are no longer
simply a safety net – they are
becoming a strategic tool that
supports confidence, protects
profitability and enables a
smoother transition to new
vehicle technologies.
Motorcycles: Technology is
driving repair complexity
WSG’s motorcycle claims data
shows how modern engineering
