Car Insurance Claims Surge as Repair Costs Double in Germany
Car insurance claims and repair costs for vehicles have seen significant increases in recent years, with the average motor vehicle property damage claim in comprehensive car insurance reaching 4,250 euros in 2024, a seven percent rise from the previous year and almost 60 percent higher than in 2017. This surge in costs has been driven by escalating workshop prices for car repairs, which have more than doubled since 2017.
The hourly rates in car repair shops in Germany have soared, with the average rate exceeding 200 euros for the first time in 2024. Mechanical, electrical, or bodywork services averaged 202 euros per hour, while painting services reached 220 euros per hour. This marks a 50 percent increase since 2017, outpacing the consumer price index which rose by only 24 percent in the same period.
The insurance industry has been grappling with these rising repair costs for cars. In 2024, the average motor vehicle property damage claim stood at 4,250 euros, a seven percent increase from the previous year and nearly 60 percent higher than in 2017. The industry has incurred nearly five billion euros in underwriting losses over the past two years, leading many providers to increase their car insurance premiums.
Looking ahead, the German Insurance Association (GDV) expects the industry to return to profit in 2025, but with continued high price pressure. Hourly rates in car repair shops are projected to reach between 174 to 202 euros for mechanical, electrical, or bodywork services in 2025, with some premium brand workshops charging up to 300 euros per hour. The average hourly rate increase from the previous year is expected to be around eight percent.
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