Auto & Mobility
Car Insurance (Comprehensive Cover)
get car damage paid out
Get Car Damage Paid Out: Secure Maximum Compensation
An accident that's not your fault? You don't necessarily have to get your car repaired. Find out how you can have the damage paid out instead and what you need to consider.
The topic in brief and concise terms
You have the right to receive a payout for car damage (fictitious invoice) without having to carry out a repair; the payout is usually made net.
An independent expert report is the basis for fictional billing in the case of significant damage and protects against unjustified reductions by the insurance company.
In the case of notional settlements, VAT is usually not reimbursed; special compensation regulations apply in the event of total losses.
Understanding the Basics of Fictional Invoicing
In the event of an accident, you as the injured party have the right to have the repair costs reimbursed by the opposing insurance company. The fictional settlement means that you can receive the compensation amount without having to carry out a repair. This is enshrined in Section 249 of the German Civil Code (BGB) and gives you the freedom to manage the compensation amount yourself. Approximately one third of all accident damages are settled in this way. This option is particularly attractive if the damage is minor or if you plan to sell the vehicle anyway. The insurance then pays the amount that would have been incurred for professional repairs in a workshop, but usually without VAT. Correctly reporting the damage is the first step for this. The fictional settlement thus offers a flexible alternative to traditional repair.
Quick Facts: The Essentials of Payout at a Glance
The decision to receive compensation for a car damage involves several key points. Here is a brief summary of the most important aspects for you:
Basis for Claim: As the injured party, you basically have the right to demand compensation instead of a repair.
Calculation: The compensation is based on an estimate or an expert's report.
Value-Added Tax: Usually, the compensation sum is paid net, meaning without VAT, as there is no repair invoice showing tax.
Reductions: Insurers may attempt to reduce items such as transport costs or surcharge for original parts; caution is advisable here.
Total Loss: In the case of a total loss, a fictitious settlement of repair costs is not possible; the replacement cost (replacement value minus residual value) is compensated.
Comprehensive Insurance: Even with damage covered by your own comprehensive insurance, a fictitious settlement is possible, but it may lead to a downgrade in the no-claims class.
These points form the basis for your decision and the next steps.
Practical Part: How the fictional billing works in concrete terms
Imagine another vehicle causes a dent in your three-year-old car. You do not want to have the damage repaired. First, you report the damage to the other party’s insurance. For the estimation of the damage, you usually need an expert's report, as an estimate is often only sufficient for minor damages up to about 750 euros. The expert determines repair costs of, for example, 1,500 euros net (excluding VAT) and a depreciation of 200 euros. You inform the insurance that you wish to settle on a notional basis. The insurance reviews the report and ideally transfers 1,700 euros to you. Ensure that the insurance does not unjustly apply hourly rates of an independent workshop if you are entitled to a brand-name workshop. In the case of a glass damage, the process may be similar. This example shows the typical procedure for a notional settlement.
Calculation examples and comparison: When is the payout worth it?
The fictional settlement is often worthwhile for older vehicles with low residual value or purely cosmetic defects. Suppose your ten-year-old vehicle suffers a 2,000 Euro damage according to the report (net). The current value of the car is only 3,000 Euro. A repair would hardly be economically sensible. You receive the 2,000 Euro and can decide whether to carry out a cheap partial repair for 500 Euro or leave the damage as it is. You thus have 1,500 Euro at your disposal. If you had the damage repaired for 2,000 Euro, you would have a repaired car but no additional liquidity. A form for self-payment is not necessary here, as the opposing insurance pays. The decision depends on your priorities and the condition of the vehicle.
Here is a direct comparison for clarification:
Option 1: Repair: Cost 2,000 Euro, vehicle repaired, no additional liquidity.
Option 2: Fictional settlement: Payout 2,000 Euro, vehicle not (or more cheaply) repaired, additional liquidity of up to 2,000 Euro.
This comparison aids in individual decision-making.
VAT on fictitious invoicing: What is reimbursed?
A common point of contention is the VAT. In the case of a hypothetical settlement, this is usually not refunded because it has not actually been incurred. You therefore receive the net amount of the repair costs. An exception may exist if you can prove that you made a replacement purchase on which VAT was incurred. Our expert tip: Do not rush into accepting a net payment if you plan to (partially) repair the vehicle later, incurring VAT. In such cases, it may be possible to receive a subsequent refund of the VAT actually paid if the repair has been demonstrably carried out. The regulations on VAT are complex; a detailed examination of the individual case is often necessary, similar to the question of when the comprehensive insurance does not pay. The correct handling of VAT is an important factor in hypothetical settlements.
Expert Opinion vs. Estimate: The Right Basis for Your Claim
Two instruments are available for assessing your damage: the cost estimate and the expert report. A workshop estimate is often only sufficient for minor damage up to a limit of about 750 to 1,000 euros. For higher damage, or when it comes to depreciation, an independent expert report is essential. In the case of liability damage, the opposing insurance company must bear the cost of the report (except for minor damage). Our expert tip: Always choose your own independent expert and do not accept the expert appointed by the opposing insurance company. A detailed report lists all damage items, including the repair route, replacement part prices, and any depreciation, which can also be relevant in a marten damage case. A solid report is your strongest argument against the insurance company.
The following points clarify the difference:
Cost Estimate: Estimation of repair costs, usually for damage under 1,000 euros.
Expert Report: Detailed damage analysis, determination of repair costs, depreciation, residual value, and replacement value; necessary for major damage.
Evidence Preservation: A report also serves to preserve evidence of the extent of damage.
Cost Coverage for Expert: In the case of liability damages (not minor damage), the opposing insurance pays.
Choosing the right instrument secures your claims.
Insurance Cuts: How to Defend Yourself Successfully
Insurance companies often attempt to make deductions during fictitious billing. Popular targets for cuts include hourly rates, transport costs, parts surcharges (UPE surcharges), or the necessity of certain painting work. It is often argued that a repair in a cheaper, independent workshop is sufficient. You do not have to accept this if, for example, your vehicle is less than three years old or has always been serviced by a branded workshop. Our expert tip: File a written objection to unjustified reductions and refer to relevant court rulings or details in your expert report. Sometimes it helps to use a direct damage service hotline to quickly clarify any uncertainties. Persistence and good arguments are often the key to success here.
Special Case of Total Loss and Comprehensive Insurance
If there is an economic write-off, this means that the repair costs exceed the replacement value of the vehicle by more than 30 percent. In this case, a hypothetical calculation of the repair costs is not possible. The insurance reimburses the replacement value minus the residual value of the damaged vehicle. An exception is the so-called 130-percent rule, where repairs can be carried out up to 30 percent above the replacement value if the vehicle continues to be used. In the case of a hypothetical calculation of a comprehensive damage (e.g., comprehensive damage), the conditions of your insurance policy (AKB) apply. Here, a deductible may be incurred and there is often a downgrade in the no-claims discount class. Our expert tip: Carefully consider with comprehensive damage whether the hypothetical calculation is worthwhile despite the downgrade and deductible. Sometimes it is wiser to cover smaller comprehensive damages yourself to avoid jeopardising the no-claims bonus, especially if a self-damage coverage does not apply. These considerations are important for making an informed decision.
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More useful links
The Federal Statistical Office (Destatis) provides comprehensive statistics on traffic accidents in Germany.
The German Insurance Association (GDV) offers statistics on road traffic accidents from the German insurance industry.
The Federal Highway Research Institute (BASt) provides information about GIDAS (German In-Depth Accident Study).
The German Bar Association offers an example of claims for pain and suffering after a traffic accident.
On Gesetze im Internet you can find the German Road Traffic Act (StVG).
FAQ
Can the insurer refuse the fictitious settlement?
As a claimant in a liability case, you generally have the right to a fictitious settlement. The insurer cannot simply refuse this, but will assess the amount and may make reductions if necessary. In the case of comprehensive insurance, the options depend on your policy.
How long does the payout take with a fictitious settlement?
The duration of the payout can vary, but it often takes between four and six weeks after submission of all documents and approval by the insurer.
What happens if I decide to repair the car after a fictitious settlement?
If you decide to have the vehicle (partially) repaired after a fictitious settlement and VAT is incurred, you may be able to claim the actually paid VAT from the insurer subsequently, provided the repair is documented.
Do I need to engage a lawyer for a fictitious settlement?
Not necessarily, but in cases of significant damage, complex situations, or if the insurer makes significant reductions, a lawyer specialising in traffic law can be very helpful in fully asserting your claims. The costs for this must be borne by the opposing insurance if it is a non-fault liability claim.
Can I also settle the damage fictitiously with my comprehensive insurance?
Yes, a fictitious settlement is also possible with your own comprehensive or partial comprehensive insurance. However, be aware of a possible excess and the downgrade in the no-claims class.
What if the insurer pays less than stated in the report?
If the insurer pays less, you should carefully review the reasons for the reductions. Reductions in hourly rates or material surcharges are often contentious. Submit a written objection and justify it, possibly with legal assistance.
