Allianz Cornhill has launched a pilot scheme to use recycled parts for vehicle repairs.

The insurer's three-month pilot, which began on 1 October, coincides with the imminent introduction of a similar scheme by the British Vehicle Salvage Federation. Both offer recycled parts to customers.

Dane Loosley, motor damage claims manager at Allianz Cornhill, said: "The BVSF scheme is coming at it more from the supply of parts, what we're trying to do is work at the other end of the scale and gauge the demand.

"It's born on the back of a scheme MMA were planning to pilot last year. We thought we'd go it alone and continue the work and see if we could learn from it."

Loosely denied the schemes, which both involve BVSF members, would clash. He said he hoped to share findings with the industry and later, if successful, join forces with the BVSF.

He added that it was a pity other insurers snubbed efforts to use recycled parts after "making up their minds on scant information".

Allianz Cornhill's pilot, like the BVSF scheme, will offer recycled parts to policyholders whose vehicle is more than five years old or if the damage makes it uneconomical to repair with new parts.

It has been suggested that insurers could save an average of £150 on the cost of each claim.