If an accident was not your fault, German law says you must be put in the financial position you would have been in without it (§ 249 BGB). In practice, the other driver's insurer scrutinises every invoice and often deletes items the courts say you are owed.
This page explains which items you can claim, which deductions are common and when it is worth going to court. What to do after an accident and how liability is split is covered on our overview page on car accidents and claims. Aleksander Sigal, Fachanwalt für Verkehrsrecht, deals with the insurer in German and explains everything to you in English.
How a claim against the other insurer works
- Notify the claim. The accident is reported to the other driver's insurer in text form within two weeks. This also suspends the limitation period.
- Get an assessment. An independent assessor of your choice establishes the repair costs, replacement value, residual value and loss in market value.
- Quantify the claim. All items are listed with evidence and a payment deadline.
- Allow time for review. For an average accident, courts generally give the insurer about four to six weeks from receipt of a complete claim.
- Challenge deductions. If the insurer pays only in part, we respond with reasons.
- Sue if needed. If the insurer sticks to its deductions, the rest can be claimed in court.
Repair or write-off?
What you receive for the car depends on how the repair costs compare with the replacement value (Wiederbeschaffungswert) – the price of an equivalent used car from a reputable dealer. The residual value (Restwert) is what the damaged car is still worth.
- Repair: if repair costs are below the replacement value, you receive the repair costs.
- 130 per cent rule: if they exceed it by up to 30 per cent, you may still repair – provided the repair is done properly and in full as set out in the report and you keep using the car, as a rule for at least six months.
- Write-off: if repair is not economical, you receive the replacement value minus the residual value.
What you can claim
| Item | What is paid |
|---|---|
| Repair costs | per assessor's report or garage invoice |
| Write-off | replacement value minus residual value |
| Loss in market value | because an accident car sells for less (merkantile Wertminderung) |
| Assessor's fees | for the expert of your choice, except for minor damage |
| Loss of use | daily flat rate by vehicle class if you do without a hire car (Nutzungsausfall) |
| Hire car | cost of a comparable car for the necessary period |
| Towing | recovery and transport to the garage |
| Flat-rate expenses | phone, postage, trips without receipts; depending on the court usually €20 to €30 |
| Legal fees | statutory fees on the amount properly owed |
For the time without your car, you choose between a hire car and loss-of-use compensation, not both. With a hire car of the same class, the insurer deducts the running costs you saved. Loss of use is only paid if you would actually have used the car. If you were partly at fault, each item is reduced by the liability split. Injury claims are covered on our page on pain and suffering compensation.
Typical deductions by insurers
Labour rates and cheaper garages
If you settle on the basis of the report, insurers often refer you to a cheaper independent garage. According to the Federal Court of Justice (BGH), this is only allowed if the repair there is of equal quality and easily accessible for you (judgment of 20 October 2009 – VI ZR 53/09). For cars up to three years old, or cars always serviced at a franchised dealer, such a referral is generally unreasonable.
Transfer costs and parts mark-ups
Transport to the paint shop (Verbringungskosten) and mark-ups on manufacturers' recommended parts prices (UPE-Aufschläge) are often deleted when settling on the report. Many courts allow them if franchised garages in the region usually charge them, but case law is not uniform.
Desk reviews instead of reports
Insurers often have reports “checked” by service providers who never see the car. Such a review (Prüfbericht) does not replace an assessment; your assessor can answer specific objections in writing.
Residual value offers from online buyers
After a write-off, the insurer sometimes presents a higher offer from a buyer elsewhere in Germany. If you have already sold the car at the residual value in your report, a later offer generally cannot be held against you. A serious, readily acceptable offer that reaches you before the sale, however, may count.
Excessive garage bills
Insurers often cut garage invoices they consider excessive. In January 2024 the BGH confirmed (judgment of 16 January 2024 – VI ZR 253/22) that this risk lies with the party at fault, provided you chose the garage with reasonable care. If the bill is unpaid, you can demand payment to the garage and assign your claims against the garage in return.
Calls offering “claims management”
Some insurers call shortly after the accident offering a partner garage, their own assessor or a quick lump sum. Convenient as it sounds, items such as loss in market value easily get lost. You are not obliged to accept. Never sign a settlement and release (Abfindungserklärung) before the full loss is known.
Settle on the report or repair?
Whether you have the car repaired is up to you. If you settle on the report (fiktive Abrechnung), you receive the net repair costs: VAT is only paid if it is actually incurred (§ 249(2) BGB). If you repair and submit the invoice (konkrete Abrechnung), you receive the gross amount.
Settling on the report can make sense for older cars or if you are leaving Germany and do not need the car repaired here. It is, however, more exposed to deductions. If you later decide to repair after all, you can generally switch to the invoice within the limitation period.
Advance payment if you cannot pay upfront
If you cannot pay upfront, you can ask the insurer for an advance, or ask the garage to bill the insurer directly in return for assigning your claim. Tell the insurer early that you lack the funds; otherwise it may later argue that you should have kept the downtime and hire-car costs lower.
When to go to court
Once the review period has passed and the insurer is in default after a reminder, you can sue. Suing too early risks bearing the costs if the insurer accepts the claim immediately.
Legal expenses insurance usually covers lawyer, court and expert costs, and we handle the cover request; see fees and legal expenses insurance. For an assessment of your case, call Aleksander Sigal on 030 86 20 12 40 or use the contact page.
This article gives a general overview of German law (as of October 2026) and does not replace advice on your individual case.