Developing Warranty & Protection Plans for EVs in North America
car dealership

The electric vehicle (EV) market is rapidly expanding and reshaping the automotive industry within North America. As electric cars become increasingly popular and accessible, automotive dealerships must adapt their warranty and protection plans to cater to this growing segment. Dealers prioritizing the development of EV-focused protection programs can not only meet their customers' evolving expectations but also maintain a competitive edge in the constantly changing landscape of the automotive world.

Auto Shield Canada, a renowned protection program provider and third-party claims administrator, understands the evolving demands of the automotive industry and strives to empower dealerships with the knowledge and tools required to thrive in this challenging environment. In this blog post, we'll outline essential strategies for automotive dealerships aiming to develop and implement effective EV warranty and protection plans.

When it comes to electric vehicles, traditional warranty and protection offerings require significant alterations to accommodate the unique features and maintenance needs of these cutting-edge automobiles. Establishing comprehensive EV protection plans involves considering specific components such as batteries, electric drivetrains, charging equipment, software, and advanced driver assistance systems. Moreover, dealerships must ensure their offerings are flexible, user-friendly, and aligned with industry best practices.

With the growing prevalence of electric vehicles and the likelihood of their dominating the near future of automobile sales, automotive dealers in the US and Canada must adapt and embrace this change proactively. In the following sections of this blog post, we'll discuss the key aspects you need to consider when developing warranty and protection plans for electric vehicles, along with providing actionable insights to help your dealership excel in this high-potential market.

Embrace the future of automotive transportation, and secure your dealership's success by staying ahead of the EV movement.


Understanding the Key Components of Electric Vehicles


To create robust and competitive warranty and protection plans for electric vehicles, dealerships must first understand the unique components and systems that set these vehicles apart from their gas-powered counterparts. Some critical components to consider include:

  1. Battery Systems: EV batteries are expensive to replace and can significantly impact the vehicle's overall performance. Therefore, comprehensive battery coverage is essential to ensure customer satisfaction.
  2. Electric Drivetrains: Unlike internal combustion engines, electric motors have fewer moving parts, resulting in different wear patterns, maintenance requirements, and failure modes.
  3. Charging Equipment: Electric vehicles rely on charging equipment to maintain their functionality and providing coverage for this equipment is crucial to the overall ownership experience.
  4. Software and Connectivity: As technology plays a more significant role in EVs, dealerships must address software updates, connectivity features, and potential cybersecurity threats in their warranty and protection plans.

By gaining a thorough understanding of the specific components of electric vehicles, dealerships can develop tailor-made warranty and protection offerings that cater to the unique maintenance needs of EV customers.


Customizing Warranty Offerings for Electric Vehicles


With an understanding of electric vehicle components, dealerships can now create customized warranty offerings that provide comprehensive coverage for EV customers. Some aspects to consider when developing electric vehicle warranties include the following:

  1. Battery Coverage: Develop warranties that specifically address the unique aspects of EV batteries, including coverage for capacity degradation, manufacturing defects, and any potential long-term issues.
  2. Component-Specific Warranties: Focus on offering component-specific warranties that provide coverage for electric drivetrains, charging equipment, and other system components unique to EVs.
  3. Software Updates and Technology Coverage: Create warranty plans that address software updates, cybersecurity, and other technology-related aspects that play an essential role in the functionality of electric vehicles.

By developing warranty offerings that directly address the unique needs of electric vehicle customers, dealerships can further enhance their value proposition and establish themselves as industry leaders in the growing EV market.


Expanding the Scope of Protection Plans for Electric Vehicles


Beyond traditional warranty coverage, dealerships need to think about protection plans that address the broader aspects of EV ownership. Similar to adapting warranty offerings, expanding protection plans for electric vehicles involves a targeted approach:

  1. Roadside Assistance: Ensure that your dealership's protection plan includes comprehensive roadside assistance tailored for electric vehicles, including support for charging-related issues and specialized towing services.
  2. Maintenance Plans: Design maintenance plans customized for electric vehicles, covering necessary services such as battery health checks, brake system maintenance, and software updates.
  3. Extended Warranty Options: Develop extended warranty offerings for electric vehicles, providing coverage beyond the factory warranty and ensuring long-term peace of mind for customers.

By offering comprehensive, customized protection plans, dealerships can instill confidence in EV owners and create loyal, long-lasting customer relationships.


Educating Staff and Customers on Electric Vehicle Coverage


A critical aspect of implementing warranty and protection plans for electric vehicles lies in ensuring that dealership staff and customers are well-informed about the distinct advantages and nuances associated with EV coverage:

  1. Staff Training: Equip dealership staff with comprehensive knowledge about electric vehicles, their unique components, and the intricacies of warranty and protection plans developed specifically for these automobiles.
  2. Customer Education: Develop educational materials and resources that dealership staff can utilize to inform customers about the advantages and details of customized warranty and protection plans for electric vehicles.
  3. Showcase Expertise: Showcase the dealership's expertise in electric vehicle coverage through marketing initiatives, industry events, and digital platforms, positioning the dealership as a reputable and knowledgeable leader.

Informed staff and customer base are crucial to successfully adopting and promoting electric vehicle warranty and protection plans.




As the electric vehicle market continues to expand rapidly, the onus is on automotive dealerships in North America to adapt and cater to the unique warranty and protection needs of this burgeoning sector. By understanding the core components of electric vehicles, customizing warranty and protection offerings, expanding plan coverage, and fostering an educated customer base, dealerships can position themselves for success in the EV market.

By focusing on these strategies and partnering with industry experts such as Auto Shield Canada, dealerships can stay ahead of the curve and successfully navigate the evolving landscape of the automotive industry in North America. Embrace the electric vehicle revolution and enhance your dealership's long-term growth prospects by mastering the nuances of EV warranty and auto repair coverage plans.

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As part of an interrelated group of speciality insurance firms dedicated to creating consumer certainty, Auto Shield Canada focuses on offering a wide range of customised protection programs and solutions that fit the unique needs of both dealers and vehicle owners. By understanding the importance of comprehensive shield protection and Auto Shield Canada's dedication to providing industry-leading solutions, you can make informed decisions that secure your vehicle, maximises returns on investment, and guarantees a hassle-free ownership experience.

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The automotive industry is constantly evolving, and along with it, the demand for comprehensive and dependable protection plans for vehicles. Auto Shield Canada is at the forefront of this changing landscape as a leading protection program provider and third-party claims administrator. As a part of an interrelated group of specialty insurance firms, Auto Shield Canada is dedicated to creating consumer certainty by offering innovative and customized automotive protection plans that provide peace of mind to vehicle owners.

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