Paying for vehicle damage yourself: form, deadlines and when it’s worth it
26.04.25
12
Minutes
Katrin Straub
Managing Director at nextsure
A minor car accident can happen in no time. But before you report the damage to your insurer, you should check whether it makes sense to cover the costs yourself. Find out here when paying out of pocket is worthwhile and what formalities are involved.
The topic in brief and concise terms
Paying for a motor vehicle claim yourself can save costs in the long term by avoiding a downgrade in your no-claims bonus and, therefore, higher insurance premiums.
A claim buyback from the insurance company is often possible up to six or twelve months after the claim has been settled and should be agreed in writing.
As a rule of thumb, liability claims up to EUR 1,500 and fully comprehensive claims up to EUR 1,300 are often better paid for out of pocket, but an individual calculation by the insurer is advisable.
Handling a claim yourself: Understanding the basics
When your motor insurance settles a claim, this has a negative impact on your no-claims discount. Your insurer places you in a lower no-claims bonus class (SF class), which results in higher premiums. One exception is partial comprehensive insurance, as this does not use SF classes. For third-party liability and comprehensive claims, it can therefore make sense to take on the cost yourself. Many underestimate the long-term costs of moving up a class. The decision to pay for a claim yourself should be carefully considered. This step can protect you from rising insurance premiums for several years.
When does it make sense to pay for car damage yourself?
Whether paying for a claim yourself is worthwhile depends on several factors. As a rule of thumb, liability claims up to around €1,500 and comprehensive claims up to around €1,300 are often better paid by yourself. On request, your insurer is obliged to provide you with a calculation that can serve as a guide. Compare the one-off cost coverage with the potential additional costs caused by higher insurance premiums over the next few years. The insurers' downgrade tables provide information on the exact effects. It is advisable to review these tables carefully, as they form part of your contract documents. This will help you better assess the financial burden.
Here are some situations in which paying yourself is often advantageous:
For minor damage with repair costs under €1,000.
When you have a high no-claims bonus class and face a significant downgrade.
If the projected premium increase over the years clearly exceeds the amount of the claim.
If you are shortly before changing insurers and want to present a clean claims history.
The precise calculation is crucial for a financially sensible decision.
The process: paying for car damage yourself – step by step
If you decide to bear a loss yourself, a structured approach is important. First, you should report the loss to your insurer, even if you are considering paying it yourself. This is often a contractual obligation. Then clarify with your insurer whether a claim buy-back is possible. This means the insurer initially settles the loss, and you reimburse the insurer for the costs later. The deadline for a claim buy-back is often six to twelve months after settlement has been completed. A specific "vehicle damage self-payment form" is not always standardised; often it is an informal written agreement or a note in the claims file. Ask your insurer about the exact procedure and any claims notification forms that may be required. Keep all agreements in writing. Communication with the other party to the accident should also be clear and documented, especially if they want to be reimbursed for the damage directly by you.
Forms and formalities: What needs to be considered?
A specific "vehicle damage self-payment form" is not legally required or standardised. Rather, it is about the correct handling with your insurer. Once the insurer has settled the claim and calculated the costs, it will inform you of the amount. You then have a deadline, usually six months, to reimburse this amount and avoid a downgrade. What is important is the insurer’s written confirmation of the claim repayment. This confirmation serves as proof that the claim is treated as having been settled by you and that your no-claims class is not affected. In the case of a direct settlement with the other party to the accident without involving your insurer, a waiver declaration from the injured party is advisable, in which they confirm that all claims have been settled. Such an agreement for claims settlement should be detailed. Make sure that all relevant details such as the vehicle registration number, date of the damage and location are included.
In-depth expertise: legal aspects and recent rulings
Legally, the claim buy-back is anchored in motor vehicle liability insurance. Insurers are obliged to offer you this option. The exact terms, in particular the deadlines for the buy-back, can be found in the General Terms and Conditions for Motor Vehicle Insurance (AKB) of your policy. Our expert tip: check your AKB carefully for the rules on claim buy-back and the associated deadlines. For claims up to €500, the insurer must even actively inform you about the option of buy-back. Recent court rulings repeatedly confirm policyholders' rights to transparent information regarding downgrading and claim buy-back. If anything is unclear, advice may be worthwhile. Also note that own-damage cover may be subject to different rules.
Important sections and regulations include:
§ 28 Insurance Contract Act (VVG) – duties of the policyholder.
The respective downgrading tables in the appendix to the AKB.
Rules on no-claims bonus protection, if agreed.
Deadlines for reporting a claim (usually one to two weeks).
These points form the legal basis for handling the claim.
Impact on the no-claims bonus class and premiums
Every liability or comprehensive claim settled by the insurer results in a downgrade in the SF class table. The extent of the downgrade varies depending on the insurer and the SF class achieved so far. A downgrade means a lower no-claims discount and therefore a higher insurance premium. It can take several years before you reach your original SF class again. Even a single claim can increase premiums for five years or longer. By paying for the claim yourself or buying it back, your SF class remains unaffected. This is particularly relevant if you plan to transfer your car insurance bonus or are soon going to cancel your car insurance. A clean claims record is an advantage in this case.
Aside from paying out of pocket directly, there are further options for avoiding or softening a premium increase. A common alternative is the so-called no-claims bonus protection, which many insurers offer. With no-claims bonus protection, you are usually allowed one claim per year without your SF class being downgraded. This cover is usually associated with a premium surcharge of a few per cent. Check whether no-claims bonus protection is included in your policy or could be booked as an add-on. Another option is to switch car insurance after a downgrade. Other insurers may have more favourable downgrade scales or overall premiums. A comparison of insurance providers may be worthwhile here. However, bear in mind that previous claims must be declared when applying. The decision for or against these alternatives depends on your individual circumstances and risk tolerance.
Conclusion and recommendation: make smart decisions and save
The decision to pay for a motor insurance claim yourself requires careful consideration of the costs and the long-term impact on your insurance cover. A specific "form for paying a motor insurance claim yourself" is less important than clear communication and a written agreement with your insurer regarding claim buy-back. Always check the deadlines, which are usually six months. Careful calculation of when self-payment is worthwhile is the key to saving costs. Make use of your insurer’s advice services and compare the one-off payment with the potential additional costs from higher premiums. As a digital insurance portal, nextsure helps you find the right solution for you and optimise your insurance situation. We help you keep track of even complex topics.
Request your individual risk analysis now: Have your insurance situation reviewed free of charge and receive concrete recommendations for improvement.
More useful links
The Federal Statistical Office provides comprehensive data and analyses on road traffic accidents in Germany.
The Federal Motor Transport Authority (KBA) provides detailed information on the vehicle fleet and traffic situation on its statistics portal.
The Consumer Advice Centre gives valuable tips on how you can save on your car insurance.
Finanztip offers well-founded advice on when it is worth paying for a car damage claim yourself.
The Central Call Centre of Motor Insurers provides the European Accident Statement as a PDF form.
The German Bar Association highlights the need for clear rules on claims assessment in an article.
FAQ
Do I need to inform my insurer, even if I want to pay for the damage myself?
Yes, you should generally inform your insurer of a claim even if you are considering paying for it yourself. This is often a contractual obligation. You should then clarify the option of claim buyback.
What is the difference between paying for damage yourself and damage buy-back?
Paying directly yourself means you settle the repair costs without involving the insurer. With claim buyback, the insurer settles the claim first, and you reimburse the insurer later to avoid a premium increase.
Does paying yourself affect all types of insurance?
No, self-payment to avoid a higher classification is relevant for motor liability insurance and fully comprehensive insurance. Partial comprehensive insurance does not use a no-claims discount system, so settling a claim here has no effect on your premium through a downgrade.
What is a no-claims bonus protection?
Discount protection is a paid add-on in motor insurance. It usually gives you one claim per year without your no-claims discount being downgraded and your premium increasing.
Can I also buy back a claim if the insurer has already paid out?
Yes, that is exactly the principle of claim buyback. After your insurance company has settled and paid the claim, you can reimburse the costs to the insurer within a certain period (usually 6-12 months).
Where can I find information about the downgrading of my no-claims bonus class?
Information about the downgrading of your no-claims discount class (SF class) in the event of a claim can be found in the General Conditions for motor insurance (AKB) of your insurance contract, often in the form of a downgrading table.
