Manage comprehensive insurance claims optimally: From reporting to settlement
14 May 2025
11
Minutes
Katrin Straub
CEO at nextsure
A comprehensive insurance claim for your own car is frustrating and raises many questions. Learn here how to do everything right from reporting the damage to the repair, and what pitfalls you should be aware of. This way, you can secure your claims and minimise costs.
The topic in brief and concise terms
A comprehensive motor insurance claim covers self-inflicted accidents and vandalism to your own vehicle, in addition to the benefits of partial coverage.
Prompt reporting of a comprehensive insurance claim (usually within seven days) and accurate documentation are crucial for smooth processing.
Excess and downgrade in the SF class affect the costs in the event of a claim; for minor damages, paying yourself may be cheaper.
Understanding comprehensive insurance claims: Core services and differentiation
A fully comprehensive damage refers to damage to your own vehicle, which is covered by comprehensive insurance. This insurance steps in if you caused the damage yourself or if vandalism is involved. In contrast to third-party, fire and theft insurance, which primarily covers damages caused by external factors such as storms, hail, theft, or collisions with wildlife, comprehensive insurance offers more extensive protection. It includes all the benefits of third-party insurance and extends them with important aspects. For new cars or vehicles of high value, often up to five years old, this extended protection is particularly recommended. The exact conditions and scope of benefits can vary depending on the insurance contract, so checking the policy is essential. This protection is a voluntary addition to the legally required motor vehicle liability insurance. Understanding the differences between third-party, fire and theft insurance and comprehensive insurance is crucial for choosing the right insurance cover.
Types of damage in focus: When comprehensive insurance pays out specifically
The comprehensive insurance covers a variety of damage scenarios that go beyond the partial insurance benefits. A typical case for comprehensive damage is an accident caused by oneself, for example, a parking bump with costs of 1,500 euros. The comprehensive insurance also covers vandalism damage, such as scratched paint or broken mirrors, often minus an excess, for example, 300 euros. Another important case is damage to one's own vehicle by unknown third parties with a hit-and-run. The coverage usually includes repair costs up to the replacement value of the vehicle. In the event of a total loss, this can mean buying a replacement vehicle up to a value of, for example, 15,000 euros. It's important to know what exactly is covered in cases of vandalism.
The following damages are typically covered by comprehensive insurance:
Accidental damage to one's own vehicle.
Damage from vandalism (deliberate damage by outsiders).
Damage from hit-and-run by an unidentifiable third party.
All benefits of partial insurance (e.g., theft, fire, glass breakage, wildlife accidents, elemental damage).
The exact definition and extent of what constitutes a comprehensive damage can be crucial for the settlement.
Exclusions and Limits: In these cases, the fully comprehensive insurance does not pay
Despite comprehensive coverage, there are situations where comprehensive insurance may reduce or deny coverage for a fully comprehensive claim. A common reason for exclusion is gross negligence, such as driving under the influence of alcohol from 0.3 per mille with symptoms of impairment. Damages caused intentionally are, of course, not covered. Operational damages that occur from the normal use of the vehicle (e.g. material fatigue, wear on brakes) are generally not covered by comprehensive insurance unless they are explicitly insured. Tyre damages without an accident event, such as a tyre bursting due to ageing, are often not covered. Participation in unauthorized races or driving without a valid driving licence also voids the insurance cover. It is therefore important to know the exact exclusion clauses in your own contract. Violations of the operating license, such as driving with severely worn tyres, can also lead to coverage reductions if this was the cause of the damage.
Claim reporting and processing: Step by step to replacement
In the event of a comprehensive insurance claim, prompt and correct notification to the insurer is crucial. Most insurers require notification within one week of becoming aware of the damage. Document the damage immediately with photos and gather all relevant information. In cases of vandalism or hit-and-run, a police report is often a prerequisite for settlement. The insurer will then assess the situation and may commission an appraiser, especially for damages over 750 euros. You often have the choice between repair in a garage or a fictitious settlement based on an appraisal. When handling a claim on your own vehicle, communication with the insurer is vital.
Our expert tip: Clarify in advance with your insurer whether there is a garage tie-in, as this may restrict free choice of a garage and failure to comply can lead to deductions of up to 15 percent.
Important steps in handling include:
Immediate notification of the damage to the insurer (often within seven days).
Precise documentation of the damage (photos, notes).
In cases of vandalism or hit-and-run: report to the police.
Coordination of further steps with the insurer (appraiser, choice of garage).
Consideration of the possibility of a fictitious settlement.
Knowledge of the own damage cover regulations can be helpful here.
Cost factor excess and no-claims discount level
When managing a comprehensive insurance claim, two cost factors play an important role: the excess and the downgrade in the no-claims discount class (SF-Class). The excess is the amount you have to pay for each claim, with typical amounts ranging from 150 to 1,000 euros. Although a higher excess lowers the annual insurance premium, it increases your costs in the event of a claim. After a regulated comprehensive damage claim, there is usually a downgrade to a less favourable SF-Class in the next insurance year, which leads to higher premiums. For smaller claims, for example up to 1,500 euros, it may therefore be more economically sensible to cover the costs yourself in order to avoid being moved up a class. Some policies offer a discount protection that allows a certain number of claims without being downgraded. The question of when comprehensive insurance no longer makes sense strongly depends on these factors and the value of the vehicle.
Expert Knowledge: Fictional Billing and Recent Judgments
The fictional settlement is an option for a comprehensive damage claim. In this case, the policyholder can be paid out the damage based on an assessment or cost estimate, without actually having the vehicle repaired. The Federal Court of Justice (BGH) has ruled that policyholders are entitled to reimbursement of repair costs at a brand-affiliated specialist workshop under certain circumstances, even if they settle fictitiously (BGH, Ref. IV ZR 426/14). This is particularly true if the vehicle is less than three years old or has been continuously serviced at a branded workshop up to that point. VAT is generally not reimbursed in a fictional settlement. Recent rulings continually influence regulatory practices. For example, hit and run can lead to a loss of the insurer’s duty to indemnify (OLG Saarbrücken, Ref. 5 U 28/23). Our expert tip: In case of uncertainties or disputes with the insurance company regarding the amount of damage or fictional settlement, legal advice can be useful to enforce your claims. The question, whether comprehensive insurance covers engine damage, is often complex and requires careful examination of the contract conditions and the cause of damage.
The rationale of comprehensive insurance: When is the protection worthwhile?
The decision for or against a comprehensive insurance policy depends on several factors. Generally, it is highly recommended for new cars and young used cars (up to about five years old), as the depreciation in the event of a write-off or costly repairs can be significant. Comprehensive insurance is often required by the lender for leased or financed vehicles to cover financial risk. Novice drivers, who statistically have a higher accident risk, also benefit from comprehensive protection. If you rely on your vehicle and could not easily cover the costs of major repairs or replacement, comprehensive insurance offers financial security. Consider how long you wish to have comprehensive cover for your car, based on the vehicle's value and your risk appetite. An annual review of the insurance conditions and the vehicle’s value helps in making the decision. For vehicles valued under 4,000 euros, often only partial coverage or liability insurance is sufficient.
Find optimal coverage and manage costs
More useful links
GDV (Gesamtverband der Deutschen Versicherungswirtschaft) provides a data service on natural hazard reports, focusing on fluctuations in motor insurance claims due to elemental damage.
Statistisches Bundesamt (Destatis) provides comprehensive information on traffic accidents in Germany.
Unfallatlas (Statistikportal) visualizes traffic accidents and offers detailed statistical data on them.
Kraftfahrt-Bundesamt (KBA) publishes extensive statistics on vehicles, drivers, and road traffic.
Verbraucherzentrale NRW offers legal advice and information on rights in the event of insurance claims.
Gesetze im Internet (Bundesministerium der Justiz) provides the full text of the Insurance Contract Act (VVG 2008).
FAQ
How quickly do I need to report a comprehensive insurance claim to my insurer?
You should report a comprehensive insurance claim to your insurer as quickly as possible, ideally on the same day. Most insurance policies stipulate a maximum reporting period of seven days.
Can I also receive a payout for a comprehensive insurance claim (fictional settlement)?
Yes, a fictional settlement for a comprehensive insurance claim is possible. You will then receive the amount of money that the repair would cost according to the assessment or cost estimate, minus the deductible and VAT.
Will my no-claims discount be reduced after a fully comprehensive insurance claim?
Yes, generally, using comprehensive insurance will lead to a downgrade to a less favorable no-claims class in the following insurance year, resulting in higher premiums.
Is it worth getting comprehensive insurance for an older car?
For very old cars with low residual value (e.g., under 4,000 Euros), a comprehensive insurance is often not worthwhile, as the premiums are disproportionate to the potential compensation. In this case, a partial coverage or liability insurance may suffice.
What happens if I cause a comprehensive insurance claim through gross negligence?
In cases of gross negligence (e.g., running a red light, using a mobile phone while driving), the insurance company may reduce benefits. In instances of driving under the influence of alcohol or drugs, coverage may be completely withdrawn. However, many policies include a 'waiver of the objection of gross negligence' for certain instances.
Does comprehensive insurance also cover damage caused by animals that are not wild animals?
The partial comprehensive insurance (and therefore also the fully comprehensive insurance) usually covers damage caused by game animals. Many modern policies extend this protection to collisions with animals of all kinds. A look at the terms and conditions provides clarification here.
