Cost of running EV leads to increase in GAP and warranty cover

8 July 2022  

Demand for GAP insurance and extended warranties for alternative fuel vehicles (AFVs) such as EVs is increasing every year, a study has found.

Intelligent Motoring, which brings together the vehicle ownership solutions of MotorEasy, Warranty Assist, Motokiki and Motor Angel, has seen the number of requests for GAP insurance quotes rise by more than 10% since 2018. June 2022 alone saw a 3.2%, while there was an 86% increase in quotes across the first six months of 2022, compared with the same period in 2021. AFV extended warranty quotes now account for 5% of all quotes, up from 2018’s 2%.

Repairs can cost up to 400% more for EVs than their combustion engine counterparts according to Intelligent Motoring’s data, drawn from MotorEasy GAP and Warranty quotes. The organisation cited the coolant pump repair for a BMW i3, which costs £2,293.99 at one of its approved garages, compared to around £400 at a franchise dealer for the equivalent part on a BMW 3 Series.

CEO of Intelligent Motoring Duncan McClure Fisher commented: “Many AFV owners are unaware that the shortfall in technicians qualified to work on EVs, alongside the higher cost of EV parts, is pushing up the repair bill when things go wrong. This presents an income opportunity for retailers and garages who are EV-ready as they can help educate drivers on the value of both GAP and warranty cover for their AFV.”

He added: “Not only could this save their customers considerable money in the longer-term but also build lasting customer relationships.”

For more information, visit: www.intelligentmotoring.com