Norbert Rollinger, head of the German Insurance Association (GDV), said on Thursday that the cost of car insurance in the country is expected to rise by 10% in the coming months.

Rollinger added that the rising prices of repair operations and spare parts caused insurance companies to lose 2.9 billion euros (3.2 billion dollars) in 2023, and many insurance companies have already raised their prices at the beginning of the new year.

However, according to Rollinger's assessment, car insurance companies cannot be expected to return to profitability except after increasing insurance premiums in 2025.

Rollinger explained that spare parts and repair costs are likely to increase this year.

Rollinger said: "For every euro collected, there were expenses amounting to 1.10 euros" in 2023