Vehicle Repair Costs Up By 40% Over last 5 Years
Friday, 24. March 2023
The cost of vehicle repairs has risen by 40% from 2018 to 2022, according to analysis of extended warranty claims paid over five years by Intelligent Motoring.
The average cost of warranty claims rose 37% between July and December 2022.
Covid-19, followed by soaring energy prices and continuing supply chain issues have continued to challenge the automotive sector.
However, Intelligent Motoring’s study of over 12,000 warranty claims reveals that rising repair costs began accelerating during the economic uncertainty that followed the UK’s Brexit referendum in June 2016.
In the past five years, warranty claims costs increased the most during 2018 to 2019, with the average claim cost rising 19%, while 2020-2021 saw a 10% increase.
Duncan McClure Fisher, CEO of Intelligent Motoring, a provider of automotive warranties, insurance products and aftersales solutions, said, “Without doubt the majority were unprepared for the knock Covid-19 inflicted on the automotive sector.
“But the industry had been facing challenges even before the pandemic hit, meaning Covid-19 was simply another element that deepened those difficulties.
“The resulting financial impact on motorists is significant and has been made worse by wider pressures including rising inflation and the overall increased cost of living.” By Graham Hill thanks to Fleet News
