Shifting Auto Landscape Shows Greater Value in Warranty Products

The AmTrust 2023 Extended Auto Warranty Advisor delves into the changes facing the auto industry and sheds light on the contributing factors in claims severity. Though claim frequency has remained steady, rising labor rates, supply chain issues, and material shortages that have driven up the cost of parts have all contributed to an increase in claim severity across both new and used vehicles in the past two years.  

Our report found:  

• Vehicle service contract claims showed a 15% increase over 2021   
• Appearance protection claims saw a 9.1% increase over 2021 
• Tire & wheel protection claims had an 11% increase over 2021 
• Windshield protection claims had an 8% increase over 2021