Allianz Calls for Using Used Spare Parts in Car Repairs Instead of New Ones

German insurance giant Allianz has called on the federal government to allow the use of used spare parts in car repairs, amid the significant surge in prices of new components in recent years. This request is part of a broader initiative to reform regulations governing the automotive repair industry in Germany, aiming to reduce the escalating costs for car owners and insurance companies alike.

Call for Designing Repairable Parts

According to the German news agency (DPA), Allianz urged the government to simplify regulations governing car repairs, allowing for a greater number of repair operations rather than full replacements. The company also called on automakers to design more repairable components, which would help reduce waste and lower costs. Allianz CEO Frank Sommerfeld cited the example of car headlights, which are often replaced entirely even in minor accidents or parking bumps, despite the possibility of repairing them.

Spare Parts Prices Surge 76% in 10 Years

Allianz revealed that more than 870,000 headlights are replaced annually in Germany, while the cost of a single headlight has risen to around 1,251 euros (equivalent to about 72,000 Egyptian pounds) in 2025, compared to 708 euros ten years ago. The company added that current German laws do not allow certain simple repairs to damaged parts. Christian Zarr, head of the Allianz Center for Technology, stated that superficial scratches on headlight covers can be technically repaired, but current German legislation mandates their complete replacement, increasing financial burdens on consumers and insurers.

European Countries Allow Repair Instead of Replacement

Allianz noted that such repairs are permitted in several European countries, most notably France, where damaged parts can be repaired or certified used parts can be used instead of new ones. The company emphasized that amending laws to allow the repair of certain damaged components or the use of certified used spare parts instead of new ones would help reduce repair costs and lower carbon emissions resulting from the manufacture of new spare parts, benefiting both the environment and the economy.

Rising Repair Costs Drive Insurance Premiums Up

Allianz pointed out that the prices of many spare parts have seen sharp increases over the past ten years, with fender prices rising by more than 80%, while the increase in rear door prices has exceeded 100%. This significant rise in repair costs has prompted insurance companies to raise policy prices, adding further financial pressure on car owners. Allianz's call comes as part of broader efforts to address these challenges, as the company seeks to promote sustainable repair practices that reduce costs and conserve resources.