Car repairs are becoming increasingly expensive for insurers in Germany.
For the first time last year, hourly rates exceeded 200 euros, according to the German Insurance Association (GDV) on Wednesday in Berlin, citing data from the expert organization Dekra. "Work on mechanics, electronics, or bodywork cost an average of 202 euros per hour in 2024, while paint jobs reached 220 euros," said GDV Chief Executive Jörg Asmussen. "Both prices rose by almost eight percent compared to the previous year." Since 2017, hourly rates in auto repair shops have increased by 50 percent, while overall consumer prices have risen by only 24 percent.
German auto insurers have been reporting losses for several years, attributing this mainly to rising prices for workshop labor and spare parts. After several significant price hikes, insurers hope to return to profitability this year for the first time in a while. According to GDV, German auto insurers faced underwriting losses totaling nearly five billion euros in 2023 and 2024 combined.
Insurance industry experts suspect that the price increases for car repairs are intended to offset slimmer margins from new car sales. "An average motor liability claim cost around 4,250 euros in 2024 – that is seven percent more than the previous year and nearly 60 percent more than in 2017," Asmussen stated.
(Reporting by Alexander Hübner, edited by Sabine Wollrab. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
