The cost of vehicle repairs soared by 40% from 2018 to 2022, analysis of extended warranty claims has revealed.

Intelligent Motoring says the repair industry had been facing challenges even before the pandemic hit

The research, carried out by Intelligent Motoring, showed that while Covid, soaring energy prices and continuing supply chain issues have challenged the automotive sector in the last few years, repair costs began to rise fast during the economic uncertainty that followed the UK’s Brexit referendum in June 2016.

The company’s study of more than 12,000 warranty claims also shows that over the last 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, 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.”

The firm said the research shows higher repair prices are here to stay for the foreseeable future and added that dealers and motoring services organisations turning to products such as extended warranty and GAP insurance to add value for customers.

“Motorists who are locked into an extended warranty programme benefit from protecting themselves against parts and service cost increases for the duration of cover, as well as being financially safeguarded from unplanned repairs.”