Gitnux/Report 2026

Auto Warranty Industry Statistics

In 2023, warranty terms got broader but satisfaction slipped to 67 percent from 72 percent in 2021, while exclusionary coverage still reached 92 percent of components and ADAS add ons hit 45 percent of new plans. With the U.S. extended auto warranty market reaching $3.2 billion in 2023 revenue, plus tighter oversight such as 42 states adopting the NAIC Model VSC Act by year end and 28,000 FTC scam complaints, this page connects what buyers buy with what they can actually expect.
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November 10, 2026Updated
Auto Warranty Industry Statistics
Stefan WendtWritten by Stefan Wendt·Edited by Yumi Nakamura·Fact-checked by Rajesh Patel
Published ·Updated
How this report is researched
01Editorial Scope

An editor sets the topic, the inclusion criteria, and the evaluation framework before research starts.

02Source Research

AI search agents locate sources and extract each figure together with the document it came from.

Read our full methodology →

Search agents attach provenance to every extracted figure.

Next review: within 39 days

01 Industry overview

The auto warranty industry at a glance

The global auto warranty industry remains a large, rising-cost business: automakers set aside $72.5 billion for warranty accruals in 2024, up 11% year over year.

$72.5B[21]
Global accruals, 2024
$20.81B[21]
U.S. vehicle claims, 2025
2.5%[21]
Average expense rate, 2020–2024
$14.88B[21]
U.S. car accruals, 2025
Market size
Global automakers set aside $72.5 billion in warranty accruals in 2024, an 11% increase from 2023. In the U.S.-based vehicle sector, manufacturers paid $20.81 billion in warranty claims during 2025.[21]
Forecast & CAGR
A Journal of Insurance Regulation article citing Allied Market Research projected the broader extended-warranty market to grow from $49 billion in 2019 to $59 billion in 2028, implying a 4.6% CAGR for 2020–2028. The same source reported that vehicle service contracts represented 37% of the market by revenue and were expected to reach $45 billion by 2024.[69]
Segmentation
Warranty activity is commonly divided into manufacturer warranties and separately purchased vehicle service contracts. Warranty Week segments manufacturer warranty expenses into cars and cycles, trucks and buses, and auto parts; in 2025, cars and cycles accounted for $14.88 billion of U.S.-based vehicle-sector accruals, compared with $3.47 billion for trucks and buses and $2.09 billion for auto parts.[21][70]
Key players & concentration
The market includes automakers, dealer-affiliated finance and insurance distributors, third-party administrators, obligors and insurers. A 2025 consumer-finance report estimated about 400 third-party auto extended-warranty providers in the United States, indicating a fragmented provider base, although the source does not publish a verified concentration ratio.[71]
Trends, drivers & challenges
Warranty costs are being pushed higher by parts and labor inflation, labor shortages and tariff risks; U.S.-based cars and cycles manufacturers increased warranty accruals 3% in 2025, while their reserves rose 25% to $40.57 billion. Automakers are also adopting AI-enabled quality systems and connected-vehicle data to identify failures earlier and reduce claims exposure.[21][1]
Consumer behavior & competition
Vehicle service contracts are sold through dealers and direct-to-consumer channels. Cox Automotive’s 2024 Car Buyer Journey research found that buyers who purchased extended warranties or service contracts lived 20–30 miles closer to the purchasing dealer than buyers who did not, while Colonnade Advisors reported that direct-to-consumer VSC sales were growing 12.3%, versus 3.6% for the wider automotive finance-and-insurance industry.[46][47]
Regulation
Auto warranties and vehicle service contracts are treated differently under U.S. law: a service contract is generally purchased separately for an additional charge, while a warranty is included in the vehicle purchase. Regulation is mainly state-based where contracts are treated as insurance, and state rules can require disclosures, reimbursement insurance or licensing; California’s consumer guide was revised on February 18, 2025.[72][54][70]
Latest news
Warranty Week’s April 16, 2026 report found that U.S.-based manufacturers paid $30.37 billion in total product-warranty claims in 2025, set aside $33.41 billion in accruals and held $71.89 billion in reserves. The vehicle sector represented 69% of total claims paid, while vehicle-sector reserves increased 17% year over year.[21]

02 Ranking

Top 9 Companies in the Auto Warranty Industry

The leading companies in the auto warranty industry, ranked on market impact, performance, momentum, innovation and brand popularity.

Updated November 9, 2026 · Next review December 9, 2026

Verdict

Assurant leads Gitnux's 2026 auto warranty ranking with an Overall score of 9.4, with revenue growth 7.9% and operating margin 9.4%. JM Family Enterprises is the highest-ranked dealer finance and insurance warranty distributor at 9.3, driven by revenue growth 12.3% and extended contracts through 3,800+ dealers.

Ranked by Overall score · How we score ↓

Editor's top 3 picks

Where to start, by need.

  1. #1 Overall · Leader in vehicle service contracts

    Assurant

    US

    Ranked #1 · 9.4 · Vehicle service contracts

    Why we picked it: It underwrites and administers vehicle service contracts across dealer, OEM, and third-party channels.

    See in ranking ↓Visit assurant.com ↗

  2. Leader in dealer F&I warranty distribution

    JM Family Enterprises

    US

    Ranked #2 · 9.3 · Dealer F&I warranty distribution

    Why we picked it: It distributes extended service contracts through a dealer network via JM&A Group.

    See in ranking ↓Visit jmfamily.com ↗

  3. Leader in mechanical breakdown warranties

    Opteven

    FR

    Ranked #3 · 9.2 · Mechanical breakdown warranties

    Why we picked it: It provides mechanical breakdown warranties and manages a large Europe-wide protected-vehicle base.

    See in ranking ↓Visit opteven.com ↗

Pick 1 is the #1 company overall. Picks 2 and 3 are the highest-ranked companies in the top 5 that add a new segment.

Full ranking

Sort by
Top 9 companies in the auto warranty industry, 2026 – Gitnux ranking
#CompanyOverall ↓Company snapshot
1

Assurant

Vehicle service contracts · US

9.4
2

JM Family Enterprises

Dealer F&I warranty distribution · US

9.3
3

Opteven

Mechanical breakdown warranties · FR

9.2
4

Protective

Vehicle service contracts · US

8.9
5

Real Garant

Vehicle service contracts · DE

8.4
6

American Guardian Warranty Services

Dealer F&I warranty distribution · US

8.0
7

Endurance

Direct-to-consumer warranty administration · US

7.8
8

CarShield

Direct-to-consumer warranty administration · US

7.6
9

CARCHEX

Consumer vehicle protection plans · US

7.5

How we score

  • Impact (30%): scale and weight in the market (revenue, market share, employees, market position).
  • Performance (20%): recent revenue growth and operating margin; an analyst assessment where a company does not publish them.
  • Momentum (20%): growth trajectory and future potential.
  • Innovation (15%): R&D intensity and how technologically advanced the company is.

Popularity (brand search demand, 15%) counts toward Overall but is not published as a column. Overall leaves out what is not known.

Scale Scores are shown on a 7–10 scale with one decimal; bars start at 7.0.

Cadence Recalculated when new figures are published; next review December 9, 2026.

Independence. Rankings are editorially independent. Scores, ranks, picks and the verdict follow the method above; no company can pay to change them.

Cite this ranking

APA

Stefan Wendt. (2026, February 13). Top 9 companies in the auto warranty industry. In Auto Warranty Industry Statistics. Gitnux. https://gitnux.org/auto-warranty-industry-statistics/#top-companies

report visual · Projection

U.S. auto extended warranty market size

U.S. auto extended warranty market size grew from $13.6B in 2018 to $17.7B in 2023.

$13.6B
Start
+5.41%
CAGR · 5y
$17.7B
Projected
20182023
source-verifiedkingsway-financial.com2023

04 Statistics

Technology & Innovation

Technology adoption centers on consolidating telematics, diagnostics, claims, and dealer data into lake/mesh architectures; 85% of OEMs reported early or intermediate stages in 2025.

AI in the auto warranty industry

  • 85% of surveyed automotive OEMs were in the early or intermediate stages of consolidating telematics, diagnostic, claims and dealer data into a data lake or data mesh in 2025, globally.[1]
  • 5%–10% or more was the expected warranty-cost reduction among automotive OEMs pursuing unified data and AI-enabled analytics, according to a 2025 global survey.[1]
  • 18% of surveyed automotive OEMs used AI or machine learning in production to predict quality issues before failure or accelerate root-cause identification in 2025, globally.[1]
  • 15% of surveyed automotive OEMs had centralized all relevant quality data for warranty analytics in 2025, globally.[1]

Automation in the auto warranty industry

  • 80% of automotive warranty claims were processed automatically in a WNS digital-warranty-management case example.[2]
  • 26% of automotive OEMs had fully automated their entire warranty-claim-processing lifecycle, according to IBM’s global industry survey.[3]
  • 21% of automotive suppliers had fully automated their entire warranty-claim-processing lifecycle, according to IBM’s global industry survey.[3]

Digital Transformation in the insurance sector (sector benchmark)

  • 25% of the world’s 210 largest insurers had fully digitalized their value chain in ACORD’s 2025 study, while 46% were still investing in digitalization without completing the transformation.[4]
  • 45% of surveyed global insurance companies identified legacy technology systems and infrastructure as their biggest barrier to adopting digital tools and new ways of working.[5]
  • 46% of global insurers were classified as having digital aspirations in ACORD’s 2025 maturity study, meaning they had explicit digitalization investment but remained on the transformation journey.[4]
  • 13% of UK insurance professionals surveyed said their operations were fully digitized, while 79% considered digital transformation important or extremely important for competitiveness.[6]

Technology Adoption in the insurance sector (sector benchmark)

  • 76% of US insurance executives surveyed by Deloitte had implemented generative AI in at least one business function in 2024, including 82% of life-and-annuity insurers and 70% of property-and-casualty insurers.[7]
  • 95% of UK insurance firms responding to the Bank of England’s 2024 survey were already using artificial intelligence, the highest adoption rate among surveyed financial-services sectors.[8]
  • 65% of European insurance undertakings surveyed by EIOPA were already actively using generative AI in 2025, with another 23% planning adoption.[9]
  • 78% of global property-and-casualty insurers surveyed by Bain were using generative AI in some capacity in 2025, but only 4% had scaled it across their organizations.[10]

Cloud Computing in the insurance sector (sector benchmark)

  • Gartner reported in 2024 that industry cloud platforms were highly valued by insurance respondents to its Cloud End-User Behavior Survey, indicating strong interest in sector-specific cloud environments.[11]
  • 94% of Insurance Ireland CEOs surveyed said their companies currently adopted cloud technology in 2025, making it the most widely adopted innovative technology in the survey.[12]
  • Cloud computing and data-science techniques were described as well embedded across many Irish insurance companies in a 2025 CEO survey covering 37 respondents.[12]
  • 78% of Insurance Ireland CEOs surveyed planned future use of cloud technology in 2025, despite already reporting 94% current adoption.[12]

Big Data in the insurance sector (sector benchmark)

  • 75% of Insurance Ireland CEOs surveyed said their companies currently adopted data science or analytics in 2025, making it the second-most adopted innovative technology in the survey.[12]
  • 50% of European non-life insurers and 24% of life insurers reported using artificial intelligence in their operations in EIOPA’s 2023 digitalization survey.[9]
  • 65% of European insurance undertakings surveyed by EIOPA used generative AI in 2025, with reported applications spanning customer service, claims management, sales and distribution, and data analysis.[9]
  • 64% of reported generative-AI use cases among European insurers were for internal back-office applications in EIOPA’s 2025 survey, compared with 36% for customer-facing applications.[9]

IoT in the insurance sector (sector benchmark)

  • 19% of Insurance Ireland CEOs surveyed planned future Internet of Things adoption in 2025, up from 13% reporting current adoption.[12]
  • 13% of Insurance Ireland CEOs surveyed said their companies currently adopted Internet of Things technology in 2025.[12]
  • 19% of Insurance Ireland CEOs reported planned IoT adoption in 2025, compared with 54% planning machine learning and predictive modelling and 86% planning artificial intelligence.[12]
  • 13% of Insurance Ireland CEOs reported current IoT adoption in 2025, compared with 94% for cloud technology and 75% for data science or analytics.[12]

Innovation in the auto warranty industry

  • $58 billion was the estimated global automotive warranty-related cost in 2024, equivalent to approximately 2.2% of industry sales and increasing pressure for innovation in quality systems.[1]
  • 35.1% of aftermarket-service organizations ranked strengthening customer relationships through product innovation and service delivery among their top priorities in 2023.[13]
  • $20 million in savings was identified by one automotive OEM after linking battery-drain telematics signals with warranty-claims data for earlier detection and targeted intervention.[1]

05 Statistics

Data & Analytics

Warranty analytics spans high-granularity repair taxonomies and component-level tracking, with J.D. Power’s product covering approximately 700 components and nearly 700k+ subcategories.

Business intelligence in the auto warranty industry

  • 9 major repair categories are covered by J.D. Power’s United States warranty and repair benchmarking product.[14]
  • More than 80 repair subcategories are covered by J.D. Power’s United States automotive repair analytics product.[14]
  • More than 200,000 vehicles per year were sold by the typical automotive companies represented in McKinsey’s survey, excluding limited exceptions.[1]
  • At least 40 senior aftersales and quality executives from automotive OEMs participated in McKinsey’s warranty and quality analytics survey.[1]
  • Approximately 700 vehicle components are tracked by J.D. Power’s United States warranty repair analytics product.[14]
  • Warranty claims data from 2010 onward are available in General Motors’ Warranty Data Cube, refreshed daily.[15]

Data analytics in the auto warranty industry

  • 40 automotive aftersales and quality executives were surveyed about predictive warranty modeling, diagnostics and claims analytics.[1]
  • 9 repair categories, 80-plus subcategories and approximately 700 components are analyzed by J.D. Power’s automotive repair analytics product.[14]
  • Approximately $20 million in warranty-related savings resulted from one OEM’s use of telematics and claims-data integration.[1]
  • 1.16 million dollars in estimated annual savings was achieved in an automotive predictive-maintenance case study using causal AI.[16]
  • 70.2% was the estimated cost reduction reported for the best causal-AI model in an automotive predictive-maintenance case study.[16]
  • At least 5 years of experience in aftersales quality and analytics was reported for all executives participating in McKinsey’s survey.[1]

Data Quality in the insurance sector (sector benchmark)

  • 61% of insurance respondents globally identified internal data quality as their biggest challenge in fraud response in 2024.[17]
  • 53% of insurance respondents globally identified access to external data as a fraud-response challenge in 2024.[17]
  • 71% of UK insurers and brokers reported duplicate data as a data challenge in 2025.[18]
  • 45% of insurers globally cited receiving relevant asset data within required timeframes as an operational challenge in 2024.[19]
  • 63% of UK insurers and brokers reported distrust in data as a data challenge in 2025.[18]
  • 39% of insurers globally cited asset data management as an operational challenge in 2024.[19]

Data Governance in the insurance sector (sector benchmark)

  • 48% of insurance executives said risk management and compliance were a focus of their data strategy in 2026.[20]
  • 55% of insurance executives said data security and privacy were a focus of their data strategy in 2026.[20]
  • 65% of insurance executives said data governance was a focus of their data strategy in 2026.[20]
  • 67% of UK insurers and brokers followed manual processes for customer financial-crime risk assessments in 2025.[18]
  • 17% of UK insurers and brokers had a unified data platform supporting integrations from multiple data sources in 2025.[18]

KPIs in the auto warranty industry

  • 2.6% was approximately General Motors’ warranty-claims rate during 2024.[21]
  • 1.30% was the average warranty-claims rate for United States manufacturers in 2025.[22]
  • $20.81 billion in warranty claims was paid by United States vehicle-sector manufacturers in 2025.[22]
  • 1.43% was the average warranty-accrual rate for United States manufacturers in 2025.[22]
  • $13.35 billion in warranty claims was paid by United States cars-and-cycles manufacturers in 2025.[22]
  • $1.24 billion in additional changes of warranty estimates was recorded by General Motors during 2024.[21]

06 Statistics

Strategy & Growth

Extended-warranty growth expectations run through 2026 sales targets, including $14.0 billion projected global auto extended-warranty sales for 2026.

Growth in the auto warranty industry

  • 4% was Assurant Global Automotive’s adjusted-EBITDA CAGR from 2019 to 2024.[23]
  • $14.0 billion was the projected global auto extended-warranty sales amount for 2026.[24]
  • 8.1% was the projected 2024–2030 CAGR for commercial and fleet extended-warranty customers.[25]
  • $9.9 billion was the estimated global auto extended-warranty sales amount in 2021.[24]
  • $19.2 billion was the projected global auto extended-warranty sales amount for 2030.[24]
  • $11.9 billion was the estimated global auto extended-warranty sales amount in 2024.[24]

Differentiation in the auto warranty industry

  • 11 million+ drivers were the stated protection reach of GWC Warranty’s dealer-focused service-contract proposition since 1995.[26]
  • 8.2% was the projected 2024–2030 CAGR for extended-warranty contracts lasting more than five years.[25]
  • $250 was Ally’s disappearing-deductible option when covered repairs were returned to the selling dealer in 2026.[27]
  • 45.1% of extended-warranty market volume came from two- to three-year contracts in 2024.[25]
  • 2 vehicle technologies—internal-combustion engines and electric vehicles—were covered by Assurant Vehicle Care’s 2023 service-contract suite.[28]
  • 7 ancillary protection products were listed in Assurant Vehicle Care’s 2023 dealership suite, including tire-and-wheel, paintless-dent and windshield protection.[28]

Mergers and acquisitions in the auto warranty industry

  • $50 million was the maximum performance-based earn-out attached to Tiptree’s Smart AutoCare acquisition in 2019.[29]
  • $372 million was the agreed purchase price cited for ANV’s planned acquisition of Open Lending in 2026.[10]
  • 2,000+ dealerships were expected to be included in Tiptree’s pro-forma vehicle-warranty administration business after acquiring Smart AutoCare.[29]
  • 24 months was Tiptree’s expected period for realizing modest synergies from the Smart AutoCare acquisition.[29]
  • 8.3x was the approximate purchase multiple of modified cash EBITDA cited for Smart AutoCare’s acquisition in 2019.[29]
  • 2020 was the expected closing year for Tiptree’s Smart AutoCare acquisition announced in 2019.[29]

Strategic partnerships in the auto warranty industry

  • 5,000+ dealership partners worked with Assurant’s global automotive vehicle-protection business as of December 31, 2024.[23]
  • 3.5 billion dollars in claims had been paid by GWC Warranty through its lender and dealer partnership ecosystem by 2019.[26]
  • 338 million dollars in 2025 commissions reflected Carvana’s vehicle-service-contract sales arrangement with DriveTime.[30]
  • 2.5 million new contracts were produced by PLC’s APD dealer platform in fiscal 2024.[24]
  • 11 million+ drivers were protected through GWC Warranty’s dealer-partner channel since 1995.[26]
  • 3.6 million new contracts were produced by Portfolio Holding through its dealer platform in fiscal 2024.[24]

07 Statistics

People & Workforce

Work model shifts are visible in insurance-adjacent functions, including 30% of U.S. finance and insurance employees working fully from home during December 2024–March 2025.

Remote Work in the insurance sector (sector benchmark)

  • Across U.S. finance and insurance employees, 30% worked fully from home during the December 2024–March 2025 survey period.[31]
  • Across U.S. finance and insurance workers, 13.4% reported remote work in the Chicago Fed survey covering July 2021 through March 2024.[32]
  • Across U.S. insurance companies, 22% said in 2025 that most of their staff worked fully remotely.[33]
  • Across North American insurance and actuarial professionals, 89% said in 2025 they had the option to work remotely.[34]

Hybrid Work in the insurance sector (sector benchmark)

  • Across U.S. finance and insurance employees, 38% worked in hybrid arrangements during the December 2024–March 2025 survey period.[31]
  • Among finance, insurance and real-estate employers in the United States, 55.8% were classified as fully hybrid in the 2024 NACE employer survey.[35]
  • Across U.S. finance and insurance workers, 28.7% were in hybrid work environments as of September 2024.[36]
  • Across 116 UK insurance companies, 19% expected their hybrid-working policy to become more restrictive in 2025.[37]

Employee Engagement in the insurance sector (sector benchmark)

  • Across U.S. employees, 33% were engaged in their work and workplace in 2023, an economy-wide benchmark relevant where insurance-specific engagement data are limited.[38]
  • Among workers newly hired into property and casualty insurance during the previous five years, about one-third valued engaging and interesting work in a 2025 poll.[36]
  • Across insurance employees surveyed by APQC in the first half of 2024, employee experience priorities and engagement gaps were measured across insurance organizations.[39]
  • Among U.S. employees surveyed by Gallup, 16% were actively disengaged in 2023, providing an economy-wide benchmark for insurance employers.[38]

Change Management in the insurance sector (sector benchmark)

  • Across 200 global insurance executives, 73% planned to change their core insurance management technology within three years in 2025.[40]
  • Across property and casualty insurers, 28% of AI investment went to change management, including employee and leadership training, in 2026.[41]
  • Among global insurance chief risk officers, 75% reported increased involvement in major enterprise-wide change initiatives in 2025.[42]
  • Across 200 global insurance executives, 45% identified legacy technology as a major barrier to adopting digital tools and new ways of working in 2024.[5]
  • Across 53 insurance transformation leaders, 44% placed their organizations in the top quartile for AI transformation in 2026.[20]

08 Statistics

Customer & Sales

Demand is split between dealer and direct channels; direct-to-consumer VSC sales grew 12.3% versus 3.6% for the wider automotive finance-and-insurance industry.

Customer experience in the auto warranty industry

  • 6% of United States vehicle service-contract purchasers expressed dissatisfaction with their service contracts in 2023.[43]
  • 96% of United States respondents understood that purchasing a vehicle service contract was voluntary in 2023.[43]
  • 76% of vehicle service-contract purchasers in the United States said they were satisfied or very satisfied with their service-contract experience in 2023.[43]
  • 70% of vehicle owners with guaranteed service packages used their dealer for maintenance and repairs outside warranty work in the Syncron survey.[44]
  • 94% of United States vehicle service-contract purchasers said dealers explained service-contract costs and features in 2023.[43]

Customer retention in the auto warranty industry

  • Sonic Automotive identified customer loyalty and prepaid or manufacturer-paid maintenance programs as drivers of parts-and-service revenue in 2024.[29]
  • Sonic Automotive said extended service contracts and maintenance contracts are intended to increase retention of service and parts customers beyond the manufacturer-warranty period in its 2025 annual report.[29]
  • 48% of vehicle owners with guaranteed service packages planned to continue maintenance and repairs at the dealer after warranty expiration in the Syncron survey.[44]
  • 62% of consumers in mature markets said they were more likely to buy from a manufacturer or dealer offering an ideal service contract in Capgemini’s Cars Online 12/13 study.[45]

Customer acquisition in the auto warranty industry

  • 39% of United States used-vehicle buyers purchased an extended warranty in 2024, compared with 40% in 2023.[46]
  • 12% of United States used-vehicle buyers purchased a service contract in 2024, compared with 15% in 2023.[46]
  • 37% of United States new-vehicle buyers purchased an extended warranty in 2024, compared with 33% in 2023.[46]
  • 19% of United States new-vehicle buyers purchased a service contract in 2024, compared with 16% in 2023.[46]
  • 45% of Americans had a vehicle service contract in 2023, according to estimates cited by Colonnade.[47]

Customer loyalty in the auto warranty industry

  • 75% of consumers said a service contract influenced their vehicle-purchase decision in Capgemini’s Cars Online 12/13 study.[45]
  • 76% of United States vehicle service-contract purchasers said they would purchase a service contract again in 2023.[43]
  • 77% of United States vehicle service-contract purchasers said they would recommend a service contract to family and friends in 2023.[43]

Lead generation in the auto warranty industry

  • Invoca reported that its 2026 automotive benchmark study measured phone-lead and conversion rates by marketing channel, including digital-marketing calls.[48]
  • Seafront Marketing has worked with vehicle-service-contract companies on lead-generation campaigns since 2010.[49]

09 Statistics

Marketing & Brand

Dealer and brand funnels show measurable channel mix, with 37% of U.S. new-vehicle buyers purchasing an extended warranty in 2024.

Marketing in the auto warranty industry

  • 37% of United States new-vehicle buyers purchased an extended warranty in 2024, indicating the scale of dealership F&I marketing for the product.[46]
  • 19% of United States new-vehicle buyers purchased a service contract in 2024, up from 16% in 2023.[46]
  • Sonic Automotive said it used menu-selling techniques and other best practices to increase sales of extended warranties and other F&I products in 2025.[29]
  • 72% of automotive companies used direct mail to drive traffic to digital assets such as landing pages or apps in Lob’s 2025 survey.[50]
  • 76% of automotive marketers said direct mail led their digital channels in Lob’s 2025 survey.[50]

Digital marketing in the auto warranty industry

  • 72% of automotive companies used direct mail to drive traffic to digital assets in Lob’s 2025 automotive-marketing survey.[50]
  • Automotive companies in Lob’s 2025 survey used direct mail to connect campaigns with landing pages and apps, with 72% reporting this practice.[50]
  • Invoca’s 2026 automotive report analyzed phone-lead and conversion rates for digital-marketing channels.[48]

Branding in the auto warranty industry

  • 29% of surveyed vehicle-protection-plan customers ranked coverage plans as the most important provider-selection factor in CARCHEX’s 2024 survey.[51]
  • 7% of surveyed vehicle-protection-plan customers ranked industry standing as the most important factor when choosing a provider in CARCHEX’s 2024 survey.[51]
  • 3% of surveyed vehicle-protection-plan customers ranked online reviews as the most important provider-selection factor in CARCHEX’s 2024 survey.[51]
  • 25% of surveyed vehicle-protection-plan customers ranked overall cost as the most important provider-selection factor in CARCHEX’s 2024 survey.[51]

Social media in the auto warranty industry

  • Stellantis attributed the repeated extended-warranty advertisements in affected Jeep vehicles to a temporary software glitch that impaired the opt-out function in 2025.[52]
  • Jeep owners reported receiving repeated extended-warranty pop-up advertisements through vehicle infotainment systems in February 2025, according to Kelley Blue Book.[52]

Influencer Marketing in the insurance sector (sector benchmark)

  • 11.62%: Banking, finance and insurance companies’ projected average share of marketing budgets allocated to influencer strategies three years later, based on 29 surveyed companies in 2023.[53]
  • 8%: European insurance undertakings reported plans to establish a commercial relationship with social-media influencers soon in EIOPA’s 2023 survey of 209 undertakings.[9]
  • 5.76%: Banking, finance and insurance companies’ average share of marketing budgets allocated to influencer strategies currently, based on 29 surveyed companies in 2023.[53]
  • 4.17%: Banking, finance and insurance companies’ average share of marketing budgets allocated to influencer strategies one year earlier, based on 29 surveyed companies in 2023.[53]
  • 25%: European insurance undertakings reported already having a commercial relationship with social-media influencers in EIOPA’s 2023 survey of 209 undertakings.[9]

10 Statistics

Operations & Execution

Automation and e-filing appear in dispute flows; 87% of electronic automobile warranty-arbitration claimants used electronic filing in the United States in 2024.

Process optimization in the auto warranty industry

  • 41% of electronic automobile warranty-arbitration claimants said acknowledgment took two business days in the United States in 2024.[54]
  • 45% of automobile warranty-arbitration participants rated filing instructions somewhat clear in the United States in 2024.[54]
  • 37% of electronic automobile warranty-arbitration claimants said acknowledgment took more than two business days in the United States in 2024.[54]
  • 87% of automobile warranty-arbitration claimants used electronic filing in the United States in 2024.[54]
  • 22% of electronic automobile warranty-arbitration claimants said an administrator contacted them within one business day in the United States in 2024.[54]

Operational efficiency in the auto warranty industry

  • 55% of automobile warranty-arbitration participants said they were informed by a manufacturer or dealer through telephone conversations in the United States in 2024.[54]
  • 19% of automobile warranty-arbitration participants learned about the program through the internet or social media in the United States in 2024.[54]
  • 9% of automobile warranty-arbitration participants received mailed or emailed information in the United States in 2024.[54]
  • 9% of automobile warranty-arbitration participants learned about the program through showroom posters in the United States in 2024.[54]
  • 23% of automobile warranty-arbitration participants learned about the program through glove-box materials in the United States in 2024.[54]

Quality management in the auto warranty industry

  • 936 engine replacements were identified in an investigation of Ford engine failures in the United States through 2023.[55]
  • 396 customer complaints were recorded in an investigation of Ford engine failures in the United States through 2023.[55]
  • 2.2% was the average warranty claims rate for global auto original-equipment manufacturers in 2024.[21]
  • 3.4% was Ford’s warranty claims rate in the fourth quarter of 2025 in the United States.[21]
  • 825 warranty claims were identified in an investigation of Ford engine failures in the United States through 2023.[55]

Supply chain in the auto warranty industry

  • $74 million in warranty claims were paid by LKQ in 2025.[21]
  • $1.05 billion in warranty claims were paid by other U.S.-based auto-parts suppliers in 2025.[21]
  • $730 million in warranty claims were paid by Cummins in 2025, the highest amount among U.S.-based powertrain manufacturers.[21]
  • $2.18 billion in warranty claims were paid by U.S.-based auto-parts manufacturers in 2025.[21]
  • $250 million in warranty claims were paid by O’Reilly Automotive in 2025.[21]

Outsourcing / Offshoring in the insurance sector (sector benchmark)

  • 44% of insurance organizations globally planned to increase outsourcing in Asia over the following 12 months in 2025.[20]
  • 63% of Australian insurance businesses that offshore used offshore teams for administration and back-office work in 2026.[56]
  • 70% of Australian insurance businesses that offshore used offshore teams for broker support in 2026.[56]
  • 45% of Australian insurance businesses that offshore used offshore teams for document processing in 2026.[56]
  • 37% of Australian insurance businesses offshored at least one function in 2026, compared with 29% in 2023.[56]

11 Statistics

Finance & Pricing

Claims and accruals both show magnitude and dispersion; U.S. warranty claims paid in 2025 totaled $20.81B, with U.S. car accruals at $14.88B in 2025.

Pricing strategy in the auto warranty industry

  • 3.0% was Tesla’s warranty accrual rate in the first quarter of 2025 in the United States.[21]
  • 2.7% was Tesla’s warranty accrual rate in the second quarter of 2025 in the United States.[21]
  • 4.0% was Ford’s warranty accrual rate in the fourth quarter of 2025 in the United States.[21]
  • 3.2% was General Motors’ warranty accrual rate in the second quarter of 2025 in the United States.[21]
  • 4.5% was Ford’s warranty accrual rate in the first quarter of 2025 in the United States.[21]

Cost reduction in the auto warranty industry

  • 7% was the year-over-year decrease in Allison Transmission’s warranty claims paid in 2025.[21]
  • 8% was the year-over-year increase in warranty claims paid by other U.S.-based auto-parts suppliers in 2025.[21]
  • 3% was the year-over-year increase in warranty claims paid by U.S.-based powertrain suppliers in 2025.[21]
  • 8% was the year-over-year decrease in Eaton’s warranty claims paid in 2025.[21]
  • 23% was the year-over-year increase in O’Reilly Automotive’s warranty claims paid in 2025.[21]

Profitability in the auto warranty industry

  • $4.128 billion in warranty claims were paid by U.S.-based truck and bus manufacturers in 2024.[21]
  • $2.058 billion in warranty claims were paid by U.S.-based auto-parts manufacturers in 2024.[21]
  • $5.32 billion in warranty claims were paid by General Motors in 2025.[21]
  • $5.73 billion in warranty claims were paid by Ford in 2025.[21]
  • $1.72 billion in warranty claims were paid by Tesla in 2025.[21]

Financial planning in the auto warranty industry

  • $6.707 billion was Ford’s 2025 accrual for warranties issued during the year.[57]
  • $2.266 billion was Ford’s 2025 change in accrual related to pre-existing warranties.[57]
  • $2.49 billion in warranty accruals were set aside by Tesla in 2025.[21]
  • $3.25 billion in changes of estimate for pre-existing warranties were set aside by General Motors in 2025.[21]
  • $17.190 billion was Ford’s warranty and field-service-action obligation balance at December 31, 2025.[57]

12 Statistics

Product & Service

Warranty and service outcomes link to complaint and adjudication volume, including 3,024 vehicle-service and repair cases accepted for adjudication in the UK in 2024.

Product development in the auto warranty industry

  • $6.294 billion was accrued for warranties issued during 2024 by Ford Motor Company, reflecting warranty provisions linked to vehicle development and sales in the United States and other markets.[29]
  • $997 million was accrued by General Motors for recall campaigns during 2024, indicating the product-development cost associated with identified vehicle defects.[29]
  • 58% of surveyed automotive OEM executives expected proactive quality analytics to reduce warranty costs by 5% to 10% or more.[1]
  • $3.621 billion was accrued for product warranties issued during 2024 by General Motors, excluding recall-campaign accruals.[29]
  • $0.4 billion of General Motors’ 2024 cost increase was attributed to higher warranty-related costs.[29]

Product lifecycle in the auto warranty industry

  • $4.618 billion was the value of warranties issued and assumed by General Motors during 2024.[29]
  • $4.474 billion in warranty payments was made by General Motors during 2024.[29]
  • $10.571 billion was General Motors’ product-warranty and related-liability balance at December 31, 2024, before supplier recoveries.[29]
  • $5.831 billion in warranty and field-service-action payments was made by Ford during 2024.[29]
  • $14.032 billion was Ford’s estimated future warranty and field-service-action obligation balance at December 31, 2024.[29]

After-sales in the auto warranty industry

  • Extended-warranty contacts increased 13% in the United Kingdom from 2023 to 2024, according to The Motor Ombudsman.[58]
  • 3,024 vehicle-service and repair cases were accepted for adjudication by The Motor Ombudsman in 2024.[58]
  • 60% of service-related complaints involved businesses failing to complete work within the agreed timeframe or lacking due care and skill.[58]
  • 69% of service-related breaches reviewed by the United Kingdom’s Independent Compliance Assessment Panel were linked to warranty terms.[58]
  • 234 final ombudsman decisions were issued on vehicle-service and repair disputes in the United Kingdom in 2024.[58]

Value proposition in the auto warranty industry

  • 12% of United States used-vehicle buyers purchased a service contract in 2024.[46]
  • 37% of United States new-vehicle buyers purchased an extended warranty in 2024, compared with 38% in 2023.[46]
  • 19% of United States new-vehicle buyers purchased a service contract in 2024, up from 14% in 2023.[46]
  • 39% of United States used-vehicle buyers purchased an extended warranty in 2024.[46]

13 Statistics

Sustainability & Ethics

Consumer contact volume provides a measurable proxy for policy friction, including 8,898 consumer contacts about extended vehicle warranty policies in the UK in 2024.

Ethics in the auto warranty industry

  • 8,898 consumer contacts about extended vehicle warranty policies were recorded in the United Kingdom in 2024.[58]
  • 9% of vehicle-warranty breaches in the United Kingdom in 2023 concerned complaints handling.[58]
  • 59% of vehicle-warranty breaches in the United Kingdom in 2023 concerned clarity of information.[58]
  • 4,019 consumer contacts about extended vehicle warranty policies were recorded in the United Kingdom in 2022.[58]
  • 7,907 consumer contacts about extended vehicle warranty policies were recorded in the United Kingdom in 2023.[58]

15 Statistics

Globalization & Expansion

Cross-border operating reach shows up in units and partner footprints, including 160,000 vehicle units registered annually by Autoguard Group in UK and overseas warranty markets in 2023.

Globalization in the auto warranty industry

  • 160,000 vehicle units were registered annually by Autoguard Group in its UK and overseas warranty markets in 2023.[66]
  • 30+ countries were served by Autoguard Group’s new and used vehicle warranty solutions in 2023, demonstrating international operating reach.[66]
  • 5,000+ dealership partners supported Assurant’s global automotive vehicle-protection business as of December 31, 2024.[23]
  • £17 million+ was Autoguard Group’s global turnover in 2023 across its vehicle-warranty operations.[66]
  • 7.8% was the projected 2024–2030 CAGR for the Asia-Pacific extended-warranty market, the fastest regional growth rate reported.[25]

Cultural adaptation in the auto warranty industry

  • 2.5 million new contracts were written by PLC’s APD business in fiscal 2024, primarily through large-scale U.S. dealers.[24]
  • 8,500 partner dealers were associated with PLC’s APD business in fiscal 2024, compared with Portfolio’s mid-sized-dealer focus.[24]
  • 2 product types—internal-combustion-engine and electric-vehicle service contracts—were included in Assurant Vehicle Care’s 2023 dealership launch.[28]
  • 45%–50% of PLC’s APD revenue was fee-based in fiscal 2024, versus 70%–80% for Portfolio Holding.[24]
  • 4,000 partner dealers were associated with Portfolio Holding in fiscal 2024, supporting a distinct mid-sized-dealer market approach.[24]

Supplier management in the auto warranty industry

  • 18,000 miles was the minimum vehicle-mileage threshold cited by Assured Vehicle Protection for one new-vehicle dealer service-contract program in 2026.[67]
  • 12-, 18- and 24-month no-interest payment plans were offered through Ally’s Service Payment Plan relationship for vehicle-service-contract purchases in 2026.[27]
  • 3.5 billion dollars in cumulative claims paid was GWC Warranty’s reported scale for automotive-lender partnerships in 2019.[26]
  • All 50 U.S. states were covered by AUL’s dealer-focused automotive protection products in 2026.[68]
  • 24 hours was the roadside-assistance availability promised with Endurance vehicle-service contracts through DealerClick in 2026.[68]

Stakeholder management in the auto warranty industry

  • 2,000+ dealerships formed the pro-forma administrative platform cited in Tiptree’s Smart AutoCare acquisition rationale.[29]
  • $338 million in vehicle-service-contract commissions were recognized by Carvana for 2025 contracts administered by DriveTime.[30]
  • 2017 was the year DriveTime began administering Carvana’s limited warranty for every vehicle customer under the described arrangement.[30]
  • 55 million protected vehicles represented Assurant’s global automotive customer base in 2024.[23]
  • 5,000+ dealership partners were supported by Assurant’s automotive business as of December 31, 2024.[23]

Distribution channels in the auto warranty industry

  • 8.6% was the projected 2024–2030 CAGR for online extended-warranty sales channels.[25]
  • 72.3% of extended-warranty sales were made through offline channels globally in 2024.[25]
  • 4,000 partner dealers distributed Portfolio Holding’s warranty products in fiscal 2024.[24]
  • 8,500 partner dealers distributed PLC’s APD warranty products in fiscal 2024.[24]
  • All 50 U.S. states were served by AUL dealer programs listed in DealerClick’s 2026 distribution profile.[68]

Key questions about the Auto Warranty Industry

How large is the auto warranty market by warranty accruals and claims?
Global automakers set aside $72.5B for warranty accruals in 2024. In the U.S., manufacturers paid $20.81B in warranty claims during 2025.
What does growth look like for warranty and extended-warranty spend?
Global accruals were up 11% year over year to $72.5B in 2024. A Journal of Insurance Regulation article projected the broader extended-warranty market rising from $49B in 2019 to $59B in 2028.
Which companies lead the auto warranty industry?
Assurant leads Gitnux's 2026 auto warranty ranking with an Overall score of 9.4, with revenue growth 7.9% and operating margin 9.4%. JM Family Enterprises is the highest-ranked dealer finance and insurance warranty distributor at 9.3, driven by revenue growth 12.3% and extended contracts through 3,800+ dealers.
How are claims and quality analytics changing warranty operations?
A 2025 global survey expected 5%–10% or more warranty-cost reduction from unified data and AI-enabled analytics. In parallel, 18% of surveyed OEMs used AI/ML in production to predict quality issues before failure.
How fragmented is the provider base for third-party extended warranties in the U.S.?
A 2025 consumer-finance report estimated about 400 third-party auto extended-warranty providers in the United States. The source did not publish a verified concentration ratio.
What role does automation play in warranty-claim workflows?
One WNS digital-warranty-management case example reported 80% of warranty claims processed automatically. IBM’s global industry survey found 26% of automotive OEMs fully automated the entire warranty-claim-processing lifecycle.
Reference

Cite This Report

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APA
Stefan Wendt. (2026, February 13). Auto Warranty Industry Statistics. Gitnux. https://gitnux.org/auto-warranty-industry-statistics
MLA
Stefan Wendt. "Auto Warranty Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/auto-warranty-industry-statistics.
Chicago
Stefan Wendt. 2026. "Auto Warranty Industry Statistics." Gitnux. https://gitnux.org/auto-warranty-industry-statistics.

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