Drivers who would otherwise have their crashed cars written-off are quite happy to have cheaper recycled parts fitted to their cars.

Allianz insurance says that in a trial in the north of England where drivers were given the 'green' option, 40 per cent took up the offer.

This take-up went up to 80 per cent if there was a chance of the car being a write-off.

The scheme has been so successful it is now being rolled out to the rest of the country.

Allianz says although there are cost savings to be had by the company it is as yet holding back on reducing car insurance premiums.

"We are investigating the potential of cuts but are first waiting to see how popular this scheme is nationwide," it said.

There are concerns that the safety of vehicles might be compromised by using second-hand parts.

Allianz has countered this fear by saying that only parts that were not vital to the 'structural integrity' of the vehicle, such as brakes, would be used.

In addition, the firm said, customers would always be given the option of either new or recycled parts.

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