A £26,233 claim for a replacement engine and related items on a 2016 BMW was the largest claim paid out by RAC Warranty last year.
Its top five most expensive claims approved in 2024 all exceeded £19,000 and covered engine failure. The claims ranged through £22,814, £19,785, £19,611 to £19,363.
Lee Coomber, RAC client director at Assurant, which partners with the RAC in the aftersales sector, said: “We’re seeing the most expensive claims continue to rise in value and there are a number of factors behind this trend.
“Firstly, the average age of vehicles for which we see claims has been rising since the pandemic and is continuing to do so. Failure of larger items such as engines and gearboxes obviously becomes more likely as cars and vans age.
“Secondly, the cost of repairs is also rising. Both parts prices and labour rates have gone up in recent years, generally well above the rate of inflation, and that has also had quite a dramatic impact. Overall, the average cost of a claim increased last year from £555 to £591.”
The number of EVs and hybrids rose by 107% and 70%, respectively, in 2024.
For a pure battery electric vehicle, the highest claim was £7,197 covering an electric drive motor. For a hybrid, the highest claim was £11,476 for a replacement of the engine assembly, crankshaft and rocker covers.
Coomber added: “While we don’t yet have a product that covers drive battery failure because almost all of the EVs on UK roads are still under manufacturer warranty for that kind of breakdown, it’s interesting to note that the highest claims for both these vehicle types were substantially lower than for petrol and diesel vehicles.
“Perhaps consumer fears about potential high repair bills from electrified vehicles will prove to be unfounded, something that may become apparent as we see more and more on UK roads.”
