RAC Warranty’s largest claim of 2025 totalled £22,954 after it approved the cost of replacing an engine and gearbox on a 2020 Audi, highlighting the rising cost of repairs as the UK car parc continues to age.
The top claim in 2024 happened to be a BMW engine, with premium brands most likely to be at the top of the largest claims list due to their premium pricing and large powerful combution engines on ICE models.
Lee Coomber, RAC client director at Assurant, which partners with the RAC in the aftersales sector, said such claims are becoming more common as vehicles get older.
He 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.”
Electrical systems top claim items
RAC Warranty said its 10 most common claim items in 2025 were led by electrical systems, followed by engine, front suspension and hubs, cooling system, body exterior, fuel system, brakes, heating ventilation and air conditioning, body interior and exhaust system.
Coomber said the overall fault profile remained relatively stable despite rising costs.
He 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 reported growth in claims volumes for electrified vehicles during 2025.
Hybrid claims increased from 1.5% of the total in 2024 to 3.1% last year, while battery electric vehicle claims rose from 0.7% to 1.4%.
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.”