German car repair costs up about 70% in ten years, insurers say

Repair costs outpace inflation

The German insurers' association GDV says an average car repair in Germany has risen about 70% in ten years, to 4,600 euros, and that spare parts and workshop charges have both climbed faster than average. Consumer prices rose 26% over the same period, so repair bills have grown far faster than general inflation. The figures were presented in Berlin on 29 October 2026.

Workshop hourly rates rose by an average of 7.5% in 2025 alone, more than three times the general increase in consumer prices, according to GDV figures first seen by SPIEGEL. Between 2017 and 2025 they rose 62%. Spare parts were about six percent more expensive than a year earlier on average, with front doors and bonnets rising even faster, the GDV analysis found.

Workshop hourly rates62%

Consumer prices26%

Workshop hourly rates

62 %

Consumer prices

26 %

Data from the article text

What it means for insurers

For insurers, the cost increase translates into billions of extra spending. The GDV expects motor insurance payouts for repairs and other benefits to rise just over ten percent to 35 billion euros this year. The motor line is expected to narrowly avoid losses, with the claims-cost ratio, which compares payouts plus administrative costs with premium income, forecast at 99%. That leaves about one euro of every 100 euros in revenue for the insurer.

GDV managing director Jörg Asmussen linked the pressure directly to the cost trend.

“The sharply higher prices for workshops and spare parts keep pushing claims expenses up, and they are growing much faster than premium income.”

Premiums ease after three years of increases

Motor insurers raised prices sharply over the past three years, but premiums are now rising more slowly. The comparison portal Verivox said on 27 October that motor tariffs this year average 2% above the previous year, with motor liability up 3% and fully comprehensive cover up 2%, while partial comprehensive offers are flat. New policies in the budget segment, mostly from online insurers, cost less than a year earlier. The GDV describes the market as fiercely competitive, with price wars recurring every few years in irregular cycles.

Motor liability3%

Fully comprehensive2%

Motor liability

3 %

Fully comprehensive

2 %

Data from the article text

Verivox managing director Aljoscha Ziller cautioned against reading the slowdown as a turnaround.

“There can be no talk of a lasting price turnaround yet. Spare parts and repairs continue to get more expensive and remain cost drivers.”

Risk ratings and autumn switching

Repair costs are not the only factor in premiums, because insurers also rate each policyholder's risk individually. The no-claims class (Schadensfreiheitsklasse, SF) matters most, since the higher a driver's class, the bigger the discount. Millions of drivers switch motor insurance each autumn in search of cheaper tariffs. Those seeking a lower price this year are finding it mainly in the budget online segment, according to Verivox's new-contract comparison.