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German Auto Repair Rates Top €200 an Hour, Driving Up Insurance Costs

Repair inflation is squeezing insurers, pushing up premiums.

Overview

  • Industry group GDV, using Dekra data, reports 2024 average workshop rates of €202 per hour for mechanics, electrics and bodywork and €220 for paint, both up nearly 8% year over year.
  • Since 2017, shop and paint rates have climbed about 50% versus roughly 24% general inflation, with official statistics showing nearly 48% inflation in vehicle maintenance and repair.
  • Average insured passenger‑car damage reached about €4,250 in 2024, a 7% rise from 2023 and nearly 60% higher than in 2017, according to GDV.
  • German motor insurers cite sustained financial strain and losses totaling nearly €5 billion across 2023 and 2024, and they are raising premiums as repair bills climb.
  • Some brand workshops now charge up to €300 per hour, while pricier parts and greater vehicle complexity are key cost drivers, with studies noting savings potential from reused components.