A £26,233 claim approved by RAC Warranty for a replacement engine and related items on a 2016 BMW was the largest claim paid out by the organisation last year.
Its top five most expensive claims approved in 2024 all exceeded £19,000, ranging through £22,814, £19,785, £19,611 to £19,363 and all cover engine failure.
Lee Coomber (pictured), 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.”
Warranty payouts for EVs and hybrids
The organisation has also released figures for the highest claims for newer fuel types during 2024.
For a pure battery electric vehicle (EV), the most was £7,197 covering a electric drive motor while, for a hybrid, it was £11,476 for a replacement of the engine assembly, crankshaft and rocker covers.
Lee added: “The number of EVs and hybrids within our customer base remains relatively low compared to petrol and diesel but is increasing rapidly – EVs were up by 107% in 2024 and hybrids by 70%.
“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.”
RAC Warranty products are sold exclusively through the RAC Dealer Network, which numbers more than 1,400 motor retailers across the UK.