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Warranty sales rise post-lockdown – but so do claims

Warranty claims increased by nearly a third in March as drivers began returning to the roads

Warranty claims increased by nearly a third in March, as improving lockdown restrictions allowed drivers to get back on the road again, new research has revealed.

And it wasn’t just claims that mounted with every new mile motorists were taking. Sales of warranty policies also soared by almost 25%, according to a new survey of more than 100,000 warranties from Händler Protect, a company that provides warranties to car dealers to sell to their customers.

In February, its warranty sales were up about 10% compared with January, but in March warranty sales grew again by almost a quarter (just over 24%).

This was before showrooms were able to operate in a near-to-normal way, with customers only allowed back in to try before they buy from 12 April. Warranty sales continued to grow in April though – up 10% again compared to March.

However, the number of cars getting back on the road did result in an increase in claims made. Händler Protect saw an increase of 30% in claims made in March compared with February.

It was a similar story with Q1 warranty claims that were up by 24% compared with Q1 2020, while sales increased 34% for the same period. During April, the most common faults reported to the warranty provider involved water pumps, injectors, air flow sensors, alternators and fuel pumps.

“It’s inevitable that as more cars get back on the road we’ll see a percentage increase in the number of claims, particularly with so many people choosing to buy that dream car this year as they find themselves with a bit more money in their pocket,” says Lloyd O’Connor, chief executive at Händler Protect.

Here at The Car Expert, we have some fantastic warranty offers for our readers provided by our commercial partners. If you’re interested in a used car warranty, you should check these out:

  • ALA Insurance has provides used car warranties in conjunction with the RAC
  • Warrantywise is a long-established and multi-award-winning warranty provider
  • Protect4Sure is a new player with a different, data-driven approach
  • Warranty Direct is one of the longest-serving names in the UK warranty market
  • Motoreasy offers warranties and many other types of cover for car owners
Tom Johnstonhttp://johnstonmedia.com/
Tom Johnston was the first-ever reporter on national motoring magazine Auto Express. He went on to become that magazine’s News Editor and Assistant Editor, and has also been Motoring Correspondent for the Daily Star and contributor to the Daily and Sunday Express. Today, as a freelance writer, content creator and copy editor, Tom works with exciting and interesting websites and magazines on varied projects.
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