Can I have my comprehensive claim paid out instead of repairing?
In short
Yes. Can you have your comprehensive claim paid out instead of repairing? Under the German model terms you can: you receive the necessary repair costs from the assessment, but without the 19 percent VAT and at most the replacement value minus the salvage value. Your deductible still applies. With a leased or financed car, the owner usually has to agree.
Figures based on the model terms and the German VAT rate, as of October 2026.
Example
Typical range
Assessed repair 4,760 euros gross, paid out without repair
4,000 euros net before deductible
VAT on garage invoices in Germany
19 percent, only reimbursed with a repair invoice
Cap without repair, replacement value 12,000 euros, salvage value 7,000 euros
at most 5,000 euros
New-price compensation above replacement value
only if used within 2 years
The amounts are worked examples and guide values from our quoting practice.
Rules from the model terms AKB 2015; your policy may differ, and we obtain the exact quote.
Worked example
Six year old compact car, parking scrape you caused, comprehensive cover
The assessment says 4,760 euros gross. Replacement value 12,000 euros, salvage value in damaged condition 7,000 euros, deductible 300 euros.
Net repair cost per assessment
4,000 euros
Cap without repair (12,000 minus 7,000 euros)
5,000 euros, not reached
Deductible
minus 300 euros
Cash without repair
3,700 euros
For comparison: repair with invoice
4,460 euros
Taking the cash means 760 euros less, exactly the VAT. Either way your comprehensive cover is downgraded for the year.
What the standard terms say
The German model terms for car insurance (AKB 2015) offer two routes for damage. If the car is fully and properly repaired and you prove it with an invoice, your comprehensive cover (Kasko) pays up to the replacement value. If it is not repaired, or only partly, it pays the necessary cost of a full repair, but at most the replacement value minus the salvage value.
Replacement value means the price of an equivalent used car on the day of the loss. Salvage value is what the damaged car would still fetch. Insurers may deviate from the model terms, so your own policy wording decides.
Route
What your Kasko pays
VAT
Repair with invoice
repair costs up to the replacement value
yes, as far as paid
Cash without repair
repair costs per assessment, capped at replacement minus salvage value
no
Partial repair, rest in cash
as without repair
only on what you actually paid
Total loss
replacement value minus salvage value
only with a replacement purchase showing VAT, depending on terms
You can reclaim input VAT
net amounts
never
VAT is the biggest deduction
The model terms reimburse VAT only if and as far as it was actually incurred for the way you chose to deal with the damage. If you take the cash, you get the net amount. At 19 percent, a 4,760 euro gross estimate pays 760 euros less.
If you can reclaim input VAT, for example on a company car, you never get the VAT anyway.
Which labour rates count
Without an invoice, the claim is settled on an assessment or a garage estimate. Germany's Federal Court of Justice ruled in 2015 (IV ZR 426/14) that the insurer may not simply apply the rates of an independent garage it picks itself. Main dealer rates count, for example, when the car is fairly new or has always been serviced by a main dealer.
If your policy ties you to partner garages, read that clause closely. It often says what you get if the car is not repaired in a partner garage.
Leasing and finance
A leased car belongs to the leasing company, which is co-insured under your Kasko. Under the German Insurance Contract Act, the insurer may only pay you as policyholder if you hold the policy document or the co-insured party agrees. With a security certificate (Sicherungsschein), that document sits with the leasing company or bank.
Leasing and loan agreements also often require a proper repair. If you take the cash anyway, the unrepaired damage may be charged when you return the car, sometimes for more than you received.
When cash makes sense and when not
It makes sense for cosmetic damage on an older car you keep, or if you can repair it cheaply yourself. If you plan to sell soon, the price cut for the damage may be smaller than the net payout.
It does not make sense for damage affecting safety, for young cars with new-price cover, or for leased cars. Under the model terms, new-price compensation above the replacement value is only paid if the money is used for a repair or another car within two years.
Different rules if someone else caused it
If another driver caused the accident, their liability insurer pays. You may settle on an assessment there too, but under section 249 (2) of the German Civil Code, VAT is only paid if it was actually incurred. You may not mix: a 2022 Federal Court ruling (VI ZR 7/21) says that if you settle notionally, you cannot also claim VAT from a partial repair.
In that case you usually do not need your own Kasko, which protects your no-claims class.
Step by step
Report the claim and ask whether the insurer appoints or approves an assessor.
Check the assessment for labour rates and parts.
With leasing or a loan, get the owner's written consent first.
Compare the net payout with a repair and the cost of the downgrade.
Confirm your choice in writing and check the deductible and salvage value in the settlement.
Checklist
Clause on damage without repair read in your policy
Partner garage clause? Check the special rule
Realistic salvage value
Input VAT reclaim yes or no
Security certificate or lease agreement checked
Downgrade of comprehensive cover included in the sums
Common mistakes
Calculating with the gross figure from the assessment
Taking cash on a leased car without consent and paying again on return
Claiming small damage through Kasko when the downgrade costs more
Leaving safety related damage unrepaired
Hiring an assessor without the insurer's consent and paying the fee yourself
Questions and answers
Frequently asked
Can I have my comprehensive claim paid out instead of repairing?
Yes, under the model terms Kasko also pays without a repair,
but net and capped at replacement value minus salvage value.
Do I get the VAT if I repair later after all?
Under the model terms VAT is reimbursed as far as it is actually incurred.
Submit the invoice and ask your insurer beforehand how it handles this.
Will I be downgraded if I take the cash?
Yes, any payout under comprehensive cover counts.
Losses under partial cover, such as hail or wild animals, leave your class untouched.
Can I repair it myself and keep the difference?
Yes.
You receive the net cost per assessment, and whatever you save is yours.
Does this also apply to partial cover, for example after hail?
Yes, the rules for damage apply to partial and comprehensive cover alike.
Does Kasko pay for loss in value?
No, the model terms expressly exclude loss in value, loss of use and rental cars.
