Allianz demands cheaper car repairs and more repair instead of replacement

A particularly striking example, according to Allianz calculations, is headlights. While the average price for a headlight was still 708 euros in 2015, it rose to 1,251 euros last year. Depending on the make and model, a single headlight can cost several thousand euros today, it said. Allianz estimates that around 870,000 headlights are replaced in Germany each year.

And headlights are only part of the problem. Other body parts have also become significantly more expensive, according to calculations by the German Insurance Association (GDV). Trunk lids cost more than twice as much last year as they did ten years earlier, fenders came with price increases of over 80 percent, and windshields were around 50 percent more expensive than in 2015.

Headlights in the spotlight

"Bei jedem kleinen Schaden wird der weggeschmissen und durch einen neuen ersetzt," criticized Frank Sommerfeld, head of Allianz Versicherungs-AG, which bundles the German motor vehicle insurance business. What is meant above all are the clear glass covers of headlights, which are typically made of plastic and currently may not be repaired under official safety regulations.

In the assessment of Christian Sahr, head of the Allianz Center for Technology, such a repair would be technically entirely possible. At a press event in Unterföhring, he said that small scratches or stone chips on the headlight lens covers could be repaired in a specialist workshop, but this is not permitted in Germany. In France and other European countries, however, such repairs are allowed for minor damage.

Demands on industry and policymakers

Allianz sees this not only as a cost problem but also as an environmental issue. If used replacement parts were used instead of new ones, or if damaged parts were repaired, CO2 emissions could be significantly reduced, it said. "Die Allianz will die Kosten nicht mehr hinnehmen," the group emphasized, adding that it "zielt auf Industrie und Politik."

Specifically, Allianz is calling on automakers to design their parts so that they can be repaired. At the same time, the political framework conditions should be simplified so that more repairs are permitted and the share of repaired and used parts increases. The group wants to curb rising repair costs and at the same time stabilize insurance premiums.

If the initiative is successful, this could also be felt by consumers, for instance when workshop bills fall or insurance contributions rise less steeply. Until then, however, the situation remains that even minor damage to a car can quickly lead to high costs.

According to its own statements, Allianz is not willing to continue accepting the price development for replacement parts and intends to maintain pressure on industry and policymakers over the coming months. The group announced that it will seek dialogue with manufacturers and legislators in order to achieve concrete changes to existing regulations.