Repair costs rise to over €760 – electrical systems continue to grow in importance

A recent survey by the General Association of the German Insurance Industry had identified a significant rise in spare parts costs and hourly rates. The latest claims analysis by CarGarantie now confirms the trend that had already been feared: the rise in vehicle repair costs, which has persist-ed for years, continued unabated in 2025 and reached a new record high last year. Against a backdrop of geopolitical uncertainties and economic fluctuations, it is therefore hardly surprising that, at around €764, average repair costs in 2025 are once again noticeably higher than the already high figure of €718 recorded the previous year. This renewed price surge continues a trend that had already led to an exceptionally sharp rise the year before.

Every year, CarGarantie analyses around one million expired warranty contracts for new and used vehicles to determine average repair costs and identify key trends in the frequency and cost of claims. The results show that, whilst the significant rise in costs is partly due to global economic challenges, the increasing technological complexity of modern vehicles is simultaneously exacerbating the burden. Electrical systems, electronic control systems and a multitude of sensitive components are highly susceptible to faults – and repairs are becoming correspondingly more complex.
Vehicle owners are becoming increasingly sensitive to rising costs: according to the latest figures from the DAT Report 2026, almost 60% state that they visit garages less frequently due to high prices. Not only does this result in lost revenue for the industry due to lower workshop utilisation, but it also reduces customer satisfaction and loyalty to the company. This makes it all the more important to offer customers a way to protect themselves against these costs.

Electrical system is the most expensive component in new cars for the first time.
The engine remains the most costly component in used cars; its share of the total claims settlement amount stands at 24.2% in 2025, slightly below the previous year’s figure of 26%. The fuel system, including the turbocharger, follows with 17.2% (previous year: 17.7%), whilst the electrical system rises from 12.9% to 13.6%. For new cars, the trend of recent years is even more pronounced: the electrical system accounts for 19.3% in 2025, overtaking the engine for the first time. The engine drops to second place with 16.9% (previous year: 18.4%), followed by the fuel system with 13.4% (previous year: 15.5%).

Electrical system most frequently faulty
Familiar patterns also emerge when it comes to the frequency of faults. The electrical system remains the most frequently affected component in both new and used cars. For used cars, this figure has risen from 21.5% to 23.2%, whilst for new cars, at 28.8%, it is significantly higher than the previous year’s figure of 26.1%. The increasing vulnerability of electrical systems thus confirms the trend already predicted in previous years: as complexity grows, both the frequency of repairs and the likelihood of faults increase. For used cars, the fuel system, including the turbocharger, comes in second place at 17.6% (previous year: 18.2%), whilst for new cars, comfort electronics comes in second at 15.2% (previous year: 14.9%). Third place for used cars is taken by the engine at 12.4% (previous year: 13.5%), whilst for new cars it is the fuel system at 10.8% (previous year: 12.9%).

Timing of damage occurrence remains stable
The timing of when damage occurs remains largely stable. For used cars, 27.5% of cases in 2025 saw damage occur within the first 5,000 kilometres (previous year: 27.1%), whilst 20.0% of cases were only recorded after more than 25,000 kilometres (previous year: 21.0%). 26.7% of claims for used cars occur only after more than 360 days (previous year: 25.8%).

Dr. Marcus Söldner, CEO CarGarantie:
“This trend confirms our expectations. It was already clear in recent years that repair costs would continue to rise due to the global economic situation, international crises and increasingly complex vehicle technology. The fact that we have now reached the €760 mark underscores just how strongly these overlapping factors are affecting the automotive industry. There is currently no sign of the situation easing any time soon. This makes it all the more important to have consistent protection against these risks – both for the trade and for end customers. CarGarantie’s warranty and repair cost insurance policies offer stable solutions that cushion rising costs whilst contributing to long-term customer satisfaction.”

Back to the menu overview