{"id":441255,"date":"2023-10-12T13:27:40","date_gmt":"2023-10-12T17:27:40","guid":{"rendered":"https:\/\/www.automoblog.com\/?p=441255"},"modified":"2024-06-12T14:55:09","modified_gmt":"2024-06-12T18:55:09","slug":"the-ev-transition-could-upend-the-warranty-industry","status":"publish","type":"reviews","link":"https:\/\/www.automoblog.com\/reviews\/auto-industry\/the-ev-transition-could-upend-the-warranty-industry\/","title":{"rendered":"The EV Transition Could Upend the Warranty Industry"},"content":{"rendered":"\n

The extended car warranty industry is big business in the U.S., valued at $20.5 billion in 2022<\/a>. And according to many experts, the industry is expected to continue to grow in the coming years. However, much of the business model is based on covering components of internal combustion engine (ICE) vehicles. Given that fact, the rapid growth of electric vehicles (EVs) as a share of the auto market in recent years could disrupt the warranty industry\u2019s well-established business model. <\/p>\n\n\n\n

Since EVs lack many of the mechanical components covered by traditional extended warranty contracts and have many components that aren\u2019t, warranty companies may have to redesign their product offerings and business strategy. Some companies have started to offer EV-specific warranty products. However, many of the biggest names in the industry have yet to adjust \u2013 suggesting that the industry may not be ready for the EV transition.<\/p>\n\n\n\n

EVs Are Taking Up More of the Road<\/h2>\n\n\n\n

Since they first hit the mainstream American market nearly 15 years ago, EVs have steadily taken an increasing share of the automotive market. During that time, an increase in the number of EV models available, tax credits for buying EVs<\/a>, and other factors have helped turn EVs from a rare find on the road to a common sight on highways and in parking lots across the country.<\/p>\n\n\n