The UK’s transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs) is accelerating, reshaping the car parc and redefining what reliability means for both private motorists and fleet operators.
But as more EVs enter the used market – and as ICE vehicles age – the true cost of vehicle ownership is becoming more complex.
Warranty Solutions Group (WSG), which analyses more than 20,000 live warranty claims, has seen first-hand how repair patterns are shifting.
While EVs remove dozens of traditional failure points, they also introduce new ones-often with significantly higher repair bills.
Against a backdrop of rising parts prices and labour costs, understanding the evolving risk profile has never been more important for business motorists, small and medium enterprises (SMEs) and fleet decision makers.
ICE: Ageing vehicles and spiralling costs
The average age of a used ICE vehicle continues to rise. Supply shortages during the pandemic and squeezed household budgets have pushed motorists to keep cars for longer.
The result is clear in the data: repair frequencies are up, and high-cost failures are becoming more common.
Three trends stand out:
Ordinary components are now driving the majority of spend.
Electrical systems – alternators, sensors, ECUs and wiring faults- are among the fastest-rising categories in both frequency and cost.
As modern ICE vehicles became more software-driven, the failure profile shifted from mechanical to electronic.
Repairing a modern electronic fault can cost significantly more than the equivalent mechanical issue a decade ago.
Labour rates are climbing across the UK.
Workshop hourly rates have risen sharply, with some regions reporting double-digit increases year-on-year.
Higher labour costs compound the impact of complex repairs, particularly where diagnostics account for a large portion of the job.
Major ICE-specific failures remain a substantial financial risk.
Wet timing belts, turbochargers and automatic gearboxes are among the most expensive ICE repairs. A wet-belt failure, for example, can easily exceed £2,000–£3,000 once associated engine damage is factored in.
These repairs disproportionately affect older vehicles, particularly those with incomplete service histories.
For SMEs relying on older vans or company cars, these escalating repair costs can materially impact cashflow and operational uptime.
EVs: Fewer moving parts, higher repair bills
EVs are often marketed as lower maintenance and in many ways, that’s true. No oil changes, timing belts, injectors or turbochargers.
But when things go wrong, they can go wrong spectacularly.
Full battery replacements can run into the tens of thousands of pounds, but even minor faults, such as high-voltage (HV) wiring or charging system failures, can carry eye-watering costs due to specialist labour and parts availability.
WSG claims data shows that HV battery cooling system issues, failed onboard chargers, and DC fast-charging faults are among the most expensive emerging repair trends.
The availability of EV-trained technicians is still limited, particularly outside major cities. This drives longer lead times and higher labour charges.
For business motorists who depend on vehicle uptime, delays waiting for specialist repairs can be just as costly as the repair itself.
Braking and suspension repairs are also rising, despite regenerative braking reducing pad and disc wear. The heavier weight of EVs places more strain on suspension assemblies, bushes and tyres—costs that fleets are now increasingly budgeting for.
The parts inflation squeeze
Both ICE and EV repair costs are being hit by a shared problem: global parts inflation. Manufacturers continue to face higher raw material, shipping and energy costs.
For dealers and independent workshops, the result is rising prices across almost every repair category.
In WSG’s claims analysis, the average cost of an ICE claims repair has risen by nearly 5% year-on-year. EV repair costs are increasing even faster, driven largely by electronic component pricing and longer labour times.
For business motorists managing multiple vehicles – or for SME fleets operating on slim margins—these rising costs create both financial pressure and uncertainty.
Why warranties are becoming a strategic business tool
The changing repair landscape means warranties are no longer just an ‘added value extra.’ Increasingly, they are becoming a strategic risk-management asset for business motorists and fleet operators.
A comprehensive warranty:
- Protects against volatile repair costs
- Reduces unexpected downtime
- Provides predictable budgeting for SMEs
- Supports residual values on high-value EVs
- Offers peace of mind during the ownership cycle
With EV uptake rising and traditional ICE repair risks still significant, many business motorists are now turning to warranties as a way to stabilise the true cost of ownership.
The road ahead
The shift from ICE to EV is transforming the repair profile of the UK’s vehicle parc. While EVs will eventually deliver long-term cost reductions, the current picture is more mixed.
Expensive electronic and high-voltage components, combined with a shortage of trained technicians, mean repair bills can be unexpectedly high.
Conversely, older ICE vehicles remain vulnerable to major mechanical failures at a time when parts and labour costs are still climbing.
For business motorists navigating this transition, the key is preparation. Understanding the emerging cost pressures, across both ICE and EVs, allows operators to plan smarter, budget more accurately, and protect their vehicles more effectively.
At WSG, we’ll continue to analyse our live claims data to help motorists make informed decisions during this pivotal shift in the automotive landscape.
Phil Miskelly-Wise is OEM and corporate sales director at Warranty Solutions Group
