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Does insurance pay for loss of value after an accident?

In short

Yes, if the other driver caused the accident: their liability insurance pays for the loss of value after the accident as part of your claim. In Germany this is called merkantiler Minderwert, often several hundred to over a thousand euros for a young car. Your own comprehensive cover (Vollkasko) does not pay it. If fault is shared, you only get your share.

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Does insurance pay for loss of value after an accident?

What it costs

Published calculation examples and a court decision on loss of value in Germany.

Example	Typical range
Two years old, replacement value EUR 20,000, repair EUR 2,000	about EUR 880 loss of value
Usual percentages by age and size of damage	about 3 to 7 percent of value plus repair
Six-year-old small car, over 100,000 km, repair over EUR 3,000	EUR 150 awarded by a court
Minor damage limit, above which the report is paid	about EUR 700 to 750 damage

As of October 2026.

The examples come from published calculations and one court decision; your amount depends on the report.

The limit of about 10 percent for small damage is a guideline value from our quoting practice, courts decide case by case.

Worked example

Rear-end collision, three-year-old car, other driver 70 percent at fault

The assessor sets the value and repair cost and applies the percentage for the third year.

Replacement value	EUR 25,000
Repair costs, net	EUR 3,000
Loss of value, 3 percent of EUR 28,000	EUR 840
Other driver pays 70 percent	EUR 588

You receive about EUR 590 for the loss of value. You carry the rest yourself; your Vollkasko does not make up the difference.

What loss of value means

A repaired car sells for less than the same car without an accident, even when the repair is perfect. Buyers fear hidden damage, and in Germany you must disclose significant previous damage when you sell. That discount is the merkantiler Minderwert, often called diminished value in English.

There is also a technical loss of value: a visible or noticeable defect remains after the repair, such as a slight difference in paint colour. That is part of the damage the person at fault has to pay as well.

Who pays and who does not

If someone else caused the accident, the loss of value is part of your compensation. Their liability insurer pays it on top of the repair, the assessor's report and compensation for not being able to use the car. If fault is shared, everything is reduced by your share.

If you caused the accident yourself, the loss stays with you. Vollkasko pays the repair minus your deductible but expressly excludes loss of value. Partial cover (Teilkasko) for hail, storm, animals or marten bites does not pay it either.

Situation	Is the loss of value paid?
Other driver fully at fault	yes, in full by their liability insurer
Shared fault, for example 70 to 30	yes, but only your share
You fully at fault, Vollkasko pays	no
Wildlife, hail, storm, marten	no, Teilkasko only pays the repair
Hit and run, driver never found	no, as a rule

How the amount is calculated

German courts often use a table that combines the car's age with the ratio of repair costs to replacement value. The younger the car and the bigger the damage, the higher the percentage. Assessors also use other methods and look at make, model and the market.

An old rule of thumb says nothing is paid after five years or 100,000 km. Do not rely on it: courts have awarded a loss of value for older cars with higher mileage when the damage was significant.

When you should not expect anything

For small scratches, dents or replacing simple parts such as a bumper or mirror, assessors and courts usually refuse a loss of value, because buyers would not ask for a discount. Many put the limit at repair costs below about 10 percent of the car's value.

Very old cars with a low value and existing previous damage often get nothing either. An assessor's report is only worth it above the minor damage limit, otherwise the other side does not pay for the report.

Tips if you are new to Germany

Claims go directly to the other driver's insurer, not through your own. You are free to choose an independent assessor (Kfz-Gutachter) yourself; you do not have to accept the one the other insurer suggests.

Insurers often do not offer the loss of value on their own. Make sure the report states an amount and include it in your written claim, in German if possible.

Step by step

Clarify whether the other driver is fully or partly at fault.
For damage above the minor damage limit, hire an independent assessor.
Make sure the report states the loss of value as an amount.
Claim it together with repair, report and loss of use from the other driver's insurer.
If it is cut or refused, consult a lawyer specialising in traffic law (Verkehrsrecht).

Checklist

Fault and share of liability clarified
Assessor's report instead of a repair estimate for larger damage
Loss of value stated as an amount in the report
Age and mileage not accepted as automatic reasons to refuse
For a leased car, clarified who receives the money

Common mistakes

Getting only a repair estimate, which does not show a loss of value
Trying to claim the loss of value from your own Vollkasko
Accepting a blanket refusal because of age or mileage without checking
Hiding the previous damage when you later sell the car

Questions and answers

Frequently asked

Does my Vollkasko pay for loss of value?

No. It pays the repair or, for a total loss, the replacement value. Loss of value is excluded.

Do I get it if I do not repair the car?

As a rule yes, if the damage is significant. It compensates the lower resale value, whether and where you repair.

Is there a loss of value for a car over five years old?

It is possible. What counts is the size of the damage, condition and market, not age alone. For small damage it often drops away.

Do I pay tax on it?

Not for a private car. For a company car, ask your tax adviser whether it has to be booked as income.

Who pays the assessor?

If the other driver is at fault and the damage is above the minor damage limit, their liability insurer; with shared fault usually only in part.

What if I caused the accident?

Then you carry the loss of value yourself, no cover makes it up. If you plan to sell soon, factor that discount in.

Sources

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