MUNICH (dpa-AFX) - The Allianz insurance company will allow cars in
Germany to be repaired with used spare parts, the Munich-based
insurance giant said on Friday.

Vehicles between three and eight years old are eligible under the
scheme, which should make repairs both more environmentally friendly
and cheaper, the insurer said.

The DAX-listed company and largest German insurer referred to
England, the Netherlands and France, where there have already been
regulations promoting the use of reusable parts in car repair shops
for several years.

'All experts agree: repairing is more sustainable than using new
parts,' said Frank Sommerfeld, head of Allianz Versicherungs-AG,
which operates the property insurance business in Germany.

The source of the spare parts will be cars that have been totalled
and are often sold abroad to be cannibalized. Allianz wants to reuse
parts such as doors, bonnets and boot-lids, as well as mirrors,
headlights and rear lights.

'Safety-relevant parts such as steering systems, axle parts or wheels
will not be used,' said Sommerfeld.

As an example, Sommerfeld cited replacing the windscreen of a VW ID.3
would cost ?1,200 ($1,290) less with a used part than a new one.

According to the Allianz Centre for Technology, CO2 emissions would
be almost 100% lower in this example.

This is due to the fact that greenhouse gases are produced during the
production of car parts, which naturally do not occur again when
installing a used replacement part.

German motor insurers have been suffering from rising costs for
years, which are largely caused by the high prices of new spare
parts.

The German Insurance Association expects the industry to post another
billion-euro deficit this year, as its income does not cover what it
spends.


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