More evidence of high inflation in cost of repairs in the UK

A £22,954 claim approved by RAC Warranty in the UK for a replacement engine and gearbox on a 2020 Audi, was the largest claim paid out by the organisation last year.

According to Assurant, which partners with the RAC in the aftersales sector in the UK, the higher value claims of this type were becoming increasingly common as the average age of cars continued to increase. Is the higher level of repair and maintenance costs any different here in Ireland?

An Assurant spokesman said: “While the trend may be moderating, cars in the UK have been getting older since the pandemic thanks to reduced supply and the increased cost of living, two factors that have had a direct impact on warranty claims.

“Failure of larger items such as engines and gearboxes obviously become more likely as cars age while at the same time, the price of everything from labour rates to parts has been increasing, sometimes dramatically.

“As a result, we are seeing more high-value bills of this kind. It is a trend that very much underlines the value of a warranty to the motorist.”

RAC Warranty’s 10 most common claim items last year were led by electrical systems, followed by engine; front suspension and hubs; cooling system; body exterior; fuel system; brakes; heating, ventilation and air conditioning; and body interior; and exhaust system.

Lee Coomber, RAC client director at Assurant, said: “We’re seeing quite a stable picture in terms of the faults leading to claims. The biggest long-term trend is that the increasingly complex electrical systems seen on most cars are leading to a greater propensity for problems to emerge but otherwise, the basket of problems makes familiar reading.

“However, the cost of all repairs continues to rise, again underlining the high degree of reassurance that warranties represent to consumers.”

RAC Warranty also saw rapid increases during 2025 in volumes of paid claims for electrified vehicles.

In 2024, 1.5 per cent of its overall claims were for hybrids but last year, increased to 3.1 per cent. Similarly, for battery electric vehicles, claims rose from 0.7 per cent to 1.4 per cent.

Coomber added: “The number of EVs and hybrids within our customer base remains relatively low compared to petrol and diesel but is rapidly growing and will obviously further increase in 2026.”

RAC Warranty products are sold exclusively through the RAC Dealer Network, which numbers more than 1,300 motor retailers across the UK.