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Insurer bids to extend recycled parts repairs

Allianz is proposing an extension of its recycled parts programme, which would offer owners of vehicles less than five years old the chance to use recycled parts in their repair for the first time.

The programme was trialled among owners of older vehicles earlier this year, and met with a generally positive response. By forming links with Cheshire-based breaker Car Transplants, the insurer hopes to establish twice daily deliveries where possible, which is key to extending the programme as a second option for policyholders.

Speaking at the Allianz Approved Repairer Roadshow in Birmingham, Paul Roberts, team leader of Image North at Allianz, claimed that total losses earn bodyshops only a fifth of the revenue of a repair, and inconvenience the customer. For repairers, using recycled parts meant more profit, better labour rates and increased business.

In newer vehicles, the programme only specifies the use of parts less than the age of the vehicle being repaired. All electrical or safety-related components would be replaced with new.

Despite support from repairers, the insurer’s proposals to offer financial incentives drawn from the extra profit on jobs using recycled parts have failed to find universal backing.

“The British public are used to having new parts in the repair, so they will ask what’s in it for them,” said ABP Club chairman David Cresswell. “That encouragement has got to come from insurers, either through a reduction in their premium or excess. It’s different in America where repairs are often funded by the customer, but we’re just not used to it in the UK. For insurance funded repairs it’s a difficult market for recycled parts.”

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