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The increase in average repair costs for new and used cars continues, as the current analysis of the insurance portfolios of CarGarantie shows. This means that the average cost of repairs has risen for five years in a row.

CarGarantie's annual damage analysis analyses the distribution of claims in the area of new and used cars from the portfolio of the specialist insurer. Every year, around one million warranties are included in the analysis, covering all brands and models and durations between 12 and 36 months. For years, the analysis has shown a continuous increase in repair costs.

572 Euro average repair costs
While an average of 551 euros had to be spent on a repair in 2019, this amount increased to more than 572 euros in 2020. The increase is similar to that between 2018 and 2019. Overall, the average costs have increased by more than 70 euros since 2016. It is possible that this trend will continue and that an increase in costs will also be observed in the coming years.

Engine still the most expensive component
In terms of the claims settlement amount, the situation is the same as in 2019. In the case of used cars, the engine continues to be the most expensive type of damage at 23.6% (previous year: 23.74%), with a clear lead over the fuel system including turbocharger at 18.8% (previous year: 18.4%) and the gearbox at 11.8% (previous year: 12.1%). This is followed by the electrical system in fourth place and the air-conditioning system in fifth place, also with almost unchanged values.
It's similar for new cars: The engine continues to lead the list of the most expensive damages with an almost unchanged share of 21.4% (previous year: 21.5%), followed by the fuel system with 20.7% (previous year: 20.1%) and the electrical system with 12.0% (previous year: 11.0%). The transmission continues to occupy 4th place, while the comfort electrical system moves into 5th place ahead of the air conditioning system, which occupied this position in 2019.

Order of frequency of damage unchanged
The similarity to the previous year is also evident in the order of damage frequency. The shares of the components are almost unchanged for both new and used cars and differ only minimally.
The fuel system continues to suffer the most frequent defects in used cars, with a share of 19.7 % in 2020 (previous year: 19.5 %). The electrical system follows in second and third place with 18.3% (previous year: 18.0%) and the engine with 10.7% (previous year: 10.8%).
For new cars, too, the fuel system with 20.2 % (previous year: 20.1 %) and the electrical system with 18.7 % (previous year: 19.6 %) are in first and second place. Unlike for used cars, however, in 2020 for new cars it is not the engine that follows in third place, but the comfort electrical system with an unchanged share of 10.7 %.

Consistent damage occurrence for used cars
While there were minor shifts in claims occurrence between 2018 and 2019, the figures remain stable between 2019 and 2020. 29.0% (previous year: 29.6%) of damage to used cars occurred within the first 5,000 km, 19.4% only after more than 25,000 km (previous year: 18.37%). Only the breakdown by days shows a slightly larger deviation: Whereas in 2019 21.1 % of the damage only occurred after more than 360 days, in 2020 this was the case for as many as 22.9 % of the damage.

Dr. Marcus Söldner, Chief Executive Officer CarGarantie:
"In the last five years, the average costs have increased by a total of fifteen percent. Such an increase should be a clear signal for both vehicle owners and dealers that it is worthwhile to insure against such costs.
To this end, CarGarantie offers numerous products that can protect both customers and dealers from these unexpected repair costs. In this way, all sides gain: security, financial stability, but also trust. Especially in times like these, dealerships can secure the long-term loyalty of its customers.”

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