Refurbishing parts has always been a way of life in the classic car market. When you're dealing with an 80-year-old vehicle, finding replacement parts can be a serious challenge. As an example, one of the SEIB Motor Trade Insurance teams clients spent 12 years searching for a rear rack for a motorbike and five years looking for a petrol tank. As a result, refurbishing and remanufacturing parts has long been the industry standard. However, what's interesting is how rapidly green parts are now becoming mainstream.
How Covid accelerated the use of green parts
In 2023, Aviva reported that nearly three in five UK drivers (58%) were likely to use recycled car parts, with almost half saying that they were more inclined to use recycled parts compared to five years prior[1]. Supply chain disruptions caused by Covid played a huge part in this, making it nearly impossible to obtain new parts and forcing businesses to get creative. An example would be one of our clients, a Mini specialist, who started buying used Minis and using them as donor cars to keep his customers' vehicles on the road.
Even post-Covid, the impact remains. Some manufacturers have simply stopped producing certain components, making it necessary for motor traders and vehicle owners to look at alternative solutions like refurbished, recycled or remanufactured parts.
What about hybrid and electric vehicles?
As hybrid and electric vehicles (EVs) continue to gain market share, we anticipate that manufacturers will increasingly discontinue spare parts for older models. Instead, the industry will likely rely on the blueprint market—where third-party companies produce licensed copies of original parts. However, these blueprint parts often don't match the quality of original manufacturer parts, making remanufactured components a more reliable option in many cases.
How green parts are shaping the insurance market
The concept of using green parts—either refurbished components or second-hand body parts—is now gaining recognition in the insurance sector. Leading insurers such as Allianz and NIG have updated their policies to include green parts within their definitions. However, the insurance market as a whole is still in the process of fully adapting to this shift.
As Motor Trade Insurance specialists, we believe that embracing green parts is not just an environmentally responsible choice but also a practical and cost-effective solution for keeping vehicles on the road. Whether you're dealing with a classic car or a modern hybrid, understanding the evolving landscape of green parts is essential for vehicle owners, repairers, and insurers alike.
Need specialist motor trade insurance?
At SEIB, we stay ahead of industry trends to ensure our clients have the right cover. If you're in the motor trade and want to discuss how green parts might impact your insurance policy, get in touch with our expert team today on 01708 850 000 or email motortrade@seib.co.uk.
[1] https://www.aviva.com/newsroom/news-releases/2023/09/almost-three-in-five-motorists-likely-to-use-recycled-car-parts/