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Insurance broker / Insurance questions / Personal liability

Do I have to repair the damage if liability insurance pays?

In short

No. As the injured party I do not have to repair the damage if liability insurance pays. Under Section 249 BGB you may claim the amount needed instead of a repair and use it freely. VAT, however, is only paid if it was actually incurred. For a EUR 1,190 repair estimate you therefore receive about EUR 1,000 without an invoice.

Do I have to repair the damage if liability insurance pays?

What it costs

Worked figures from our quoting practice and what private liability costs in Germany.

ExampleTypical range
Repair estimate including VATEUR 1,190, of which EUR 190 VAT
Payout without repairabout EUR 1,000 net
Private liability for one person, at least EUR 10 million coverabout EUR 40 to 120 a year
Private liability for a family or coupleabout EUR 60 to 180 a year

The repair amounts are a worked example with 19 percent VAT, guide value from our quoting practice.

Premium ranges from published market overviews, as of 2026.

Worked example

Scratching a friend's dining table while helping with a move

The tabletop has deep scratches. The carpenter quotes EUR 1,190 including VAT for sanding it down.

Estimate including VATEUR 1,190
Settlement without repairEUR 1,000 net
Repaired later with invoiceEUR 190 VAT claimed afterwards
Friend's duty to repairnone

The friend can keep the EUR 1,000 and leave the table as it is. If he has it repaired, he gets the full amount with the invoice.

Money instead of repair: what German law says

Whoever owes compensation must restore the previous state under Section 249 (1) BGB. For a damaged item, however, the injured party may claim the amount needed for this instead, under subsection 2.

What they do with the money is up to them. They can have the damage repaired, fix it themselves, live with the scratch or buy something else. The liability insurer of the person responsible may not make payment depend on a repair.

VAT only with an invoice

The second sentence of Section 249 (2) BGB adds an exception: VAT (Umsatzsteuer) is only included if and to the extent it was actually incurred. If you settle on the basis of an estimate and do not repair, you receive the net amount.

If you have the repair done later after all, submit the invoice. The insurer then pays the VAT within the scope of the damage.

Repair, current value and write-off

If the repair costs more than the item was worth before the damage, liability insurance generally only pays the current value (Zeitwert). A five-year-old laptop therefore often brings less than a repair would cost.

The injured party bears the difference to the new price, unless the policy includes a new-value clause for young items. The linked page on current value explains how this is calculated.

If you caused the damage

As the person responsible, you neither have to repair the damage nor insist on a repair. Your liability insurer checks the claim and pays the justified amount to the injured party.

Do not promise the injured party a repair at a particular workshop or a fixed amount. Under the model terms, admissions made without the insurer's consent only bind it insofar as the claim existed anyway.

Step by step

  1. Photograph the damage and note the item's age and purchase price.
  2. Get a repair estimate and send it to the insurer.
  3. Decide whether to repair or settle net.
  4. If you repair later, submit the invoice.
  5. If the claim is rejected, ask for the reasons in writing.

Checklist

  • Estimate showing net amount and VAT separately
  • Proof of purchase date and price
  • Photos of the damage before any repair
  • Broken part kept until the insurer agrees
  • Bank details given for the payout

Common mistakes

  • Believing there is no money without a repair
  • Claiming VAT without an invoice
  • Throwing away the broken part before the insurer has seen it
  • As the person responsible, promising an expensive workshop at your own cost

Questions and answers

Frequently asked

Can I keep the liability payout without repairing?

Yes.

Under Section 249 (2) BGB you may claim the money and use it freely; only the VAT is dropped.

Can the insurer demand a repair invoice?

Not for the net amount.

For the VAT, yes, because it is only paid if incurred.

May I repair it myself?

Yes.

You then receive the net amount of a professional repair, not just your material costs.

Do I have to repair the damage as the person who caused it?

No.

Your liability insurer pays the justified amount; how it is used is the injured party's decision.

What if the repair costs more than the item?

Liability insurance then generally pays the current value, meaning the value before the damage.

Sources

NAMMERT insurance broker

Request a quote: Personal liability

We compare insurers and come back to you, in English.

Free; the insurer pays our fee.

1Who is it for?
2Which insurance?

Choose as many as you like. For each one, the details an insurer needs for a quote appear below.

Personal

Business

3Details

Personal liability insurance (Privathaftpflicht)

For example work keys, a drone, a small boat, documents in English

4Your current policy
5How can we reach you?

Related questions

Your broker: Norman Nammert, trading as NAMMERT.

Insurance broker licensed under section 34d(1) of the German Trade Regulation Act.

Broker register no. D-C08Q-TOSD4-37.

NAMMERT Assekuradeur GmbH is a separate company.

It does not arrange your contract.

Statutory disclosure (German) · Updated

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