AmTrust examined over 2.4M auto warranty claims totaling ~$1.5B from 2015-2019 across all manufacturers as auto warranty claims continue to rise.
Guaranteed Asset Protection (GAP) claim payouts have risen by
Vehicle Service Contracts (VSC) claim payouts have risen by
2020 saw a major shift in driving habits. Use of public transportation decreased while short getaway trips became more popular.
“Consumer demand for automobiles, both new and used, has quickly accelerated since May. We’ve also seen an increase in demand for a variety of extended warranty products that enable consumers to protect their investments.”
President of AmTrust Specialty Risk U.S.
Consumers hold on to vehicles longer and are more likely to purchase used vehicles
As vehicles age, the likelihood of an expensive repair increases
Having an extended warranty can protect consumers from having to pay a huge bill out of pocket
For many consumers purchasing new cars, GAP is crucial to protect their investment from the moment they drive off the lot. Drivers are getting more value out of GAP, with the average five-year claim payouts continually increasing.
Cars are % more likely than trucks to file a GAP claim
Trucks / Vans / SUVs
up 18% from 2015
Trucks / Vans / Suvs
up 23% from 2015
Asian Manufacturers of Trucks/Vans/SUVs See Highest Five-Year Growth in Average Claim Payouts
*percentages reflect the increase in average claim payouts from 2015-2019
Dents, dings and spills can ruin your vehicle’s interior and exterior appearance. Many consumers find comfort in purchasing additional coverage. Claim payouts on these coverages continue to rise by an average of 30%, helping consumers keep their vehicles looking good while avoiding repair costs.
Potholes, road repairs and lousy weather stall drivers in the Northeast and Midwest, where we see the highest average claim payouts for Tire and Wheel Protection.
As the technology in vehicles continues to grow, more complex components can break down, requiring expensive repairs. Vehicle Service Contracts give consumers the comfort of knowing that if something does go wrong, they won’t be stuck with a huge out of pocket bill. As vehicles age, the likelihood of a major component break down increases, causing the average claim payouts cost of used cars to exceed new vehicles.
up 22% from 2015
up 17% from 2015
*Average Claim Payouts