RAC Warranty expands EV One policy with battery failure cover

RAC Warranty has added battery failure protection to its EV One policy, extending cover to electric cars up to 12 years old with a maximum mileage of 80,000 miles. The change offers dealers an additional warranty feature that can make older used EVs more attractive to buyers.

Key takeaways

• Battery failure cover now part of EV One policy.
• Applies to EVs up to 12 years old.
• Maximum mileage limit set at 80,000 miles.
• Provides dealers with a new selling advantage.

RAC Warranty expands EV One policy

The insurer has broadened the scope of its EV One warranty, which previously focused on mechanical and electrical components. The addition of battery failure cover addresses a key risk area for used electric vehicles, especially as battery health can affect resale value.

Dealers can now offer a more comprehensive warranty package without needing third‑party extensions. This aligns the policy with the growing market for older EVs that still have significant residual value.

Eligibility and limits

The enhanced cover applies only to vehicles that are twelve years old or younger and have not exceeded 80,000 miles on the odometer. These thresholds match common dealer criteria for used‑car warranty eligibility, ensuring the product fits existing sales processes.

RAC Warranty has not disclosed any change to the overall premium cost, but the added protection is expected to increase the perceived value of the policy for both dealers and customers.

Benefits for dealers and customers

With battery failure now covered, dealers can reassure buyers that the most expensive component of an EV is protected. This can reduce buyer hesitation and potentially shorten the sales cycle for older models.

Customers gain peace of mind knowing that a costly battery replacement, which can run into thousands of pounds, is covered under the warranty, improving overall satisfaction and retention.

What this means for dealers

Dealers can market older used EVs with confidence, citing the RAC battery cover as a differentiator from competitors offering only standard warranties. The policy may enable higher transaction prices or quicker turnover of stock that would otherwise be hard to sell.

By integrating the RAC EV One policy into their finance and after‑sales packages, dealers can create bundled offers that enhance profitability while meeting growing consumer demand for reliable EV warranties.

Frequently asked questions

What types of battery failures are covered under the new RAC EV One policy?

The policy covers defects and failures that arise from normal use, including loss of capacity and complete battery malfunction, provided the vehicle meets the age and mileage limits. It does not cover damage caused by accidents, misuse, or unauthorised modifications.

Can a dealer add the RAC battery cover to an existing EV One warranty?

Yes, dealers can upgrade an existing EV One policy to include battery failure cover at the point of sale, provided the vehicle still falls within the twelve‑year and 80,000‑mile criteria. The upgrade is handled through RAC’s standard warranty administration process.