Insurance broker / Insurance questions / Car insurance

Should I pay for car damage myself in Germany?

In short

Paying yourself makes sense when the damage costs less than the extra premium a downgrade in your no-claims class would cost over the next years. That is often the case up to about EUR 1,000, more with a high premium. Still report the claim within a week and decide later: you can usually buy back a settled claim within six months.

Request a quote +49 3375 29 12 77

Should I pay for car damage myself in Germany?

What it costs

Documented rules and a published calculation on buying back a claim.

Example	Typical range
Buy-back deadline under the model terms	6 months after the insurer's notice
Insurer must tell you the amount under the model terms	for payments up to EUR 500
Claim EUR 900, liability premium EUR 600, extra premium over ten years	about EUR 2,170
Same example, saving from buying back	about EUR 1,270

As of September 2026. Deadline and EUR 500 limit from the model terms of the German insurance association, your policy may be more generous. The calculation comes from a published buy-back calculator. The rule of thumb of about EUR 1,000 is a guide value from our quoting practice.

Worked example

Parking scrape, EUR 900 damage to another car

Liability premium EUR 600 a year. The insurer settles and tells you the amount.

Amount paid by the insurer	EUR 900
Extra premium after downgrade, first year	about EUR 360
Extra premium over ten years	about EUR 2,170
Buy-back within six months	EUR 900

Buying back saves about EUR 1,270. Looking only at the first year would have led to the wrong decision.

Why a small claim can get expensive

In Germany your premium depends on your Schadenfreiheitsklasse, the years you have driven without a claim. If your liability or comprehensive cover pays for damage you caused, you drop to a worse class on the next 1 January. The higher premium lasts until you have climbed back, often several years.

Liability and comprehensive cover (Vollkasko) have separate classes. A scrape on someone else's car hits liability, the scratch on your own car hits comprehensive. Claim both and you are downgraded twice.

How to do the maths

Ask your insurer which class you would fall to and what you would pay in each year until you are back where you are today. Add up the difference year by year. If the total is higher than the damage, pay it yourself.

Do not look only at the first year. The extra premium in year one is often smaller than the damage, over five to ten years it is usually much larger.

Situation	Tendency
Damage below about EUR 500	almost always pay yourself
Damage EUR 500 to 1,500	calculate, often pay yourself
Damage above EUR 2,000	usually claim
Anyone injured	always claim
High premium, few claim-free years	paying yourself tends to pay off
Very high class with a mild downgrade	paying yourself pays off less

Report first, decide later

The German model terms require you to report every incident that could lead to a payment within one week. This protects you: if the other driver later asks for more, for example for injury, the case is on record.

Let the insurer handle the claim. Once settled, it tells you how much it paid. If you repay that amount within six months, your policy counts as claim-free. The model terms only require this notice up to EUR 500, but many policies allow buy-back above that and in comprehensive cover. Ask for it.

When not to pay yourself

If someone is injured, fault is unclear or the other driver makes large demands, leave it to your insurer. It checks whether the claim is justified and rejects inflated demands. Do not hand over cash at the roadside.

Partial cover claims do not affect your class, so there is nothing to protect. And do not empty savings you need elsewhere to buy back a claim.

Step by step

Report the incident to your insurer within one week.
Ask which no-claims class you would fall to and what that means in euros.
Add up the extra premium until you would be back in your current class.
Wait for the letter that tells you how much the insurer paid.
Repay within six months if the extra premium is higher.

Checklist

Incident reported in time
Downgrade calculated in euros for several years
Buy-back right and limit in your own policy checked
Six-month deadline in your calendar
Nobody injured and fault not disputed

Common mistakes

Not reporting at all and paying the other driver in cash without anything in writing
Comparing the damage only with the first year's extra premium
Missing the six-month deadline
Paying a partial cover claim yourself although it causes no downgrade

Questions and answers

Frequently asked

Do I have to report damage I want to pay myself?

Yes, the terms require a report within one week. You can still pay yourself afterwards by buying back the claim.

Up to what amount should I pay myself?

It depends on your premium and the downgrade. As a rough guide often up to about EUR 1,000, more if your premium is high.

Can I buy back a comprehensive claim?

With many insurers yes. The model terms only cover liability, so check your own policy.

What if the other driver asks for more later?

Your insurer keeps handling it. Under the model terms the amount you repay does not increase. Check that your policy says the same.

Does a windscreen claim affect my class?

No. Glass, wildlife, hail, storm and theft fall under partial cover, which has no no-claims class.

Is Rabattschutz better than paying myself?

For large claims it can be, for small ones buying back is usually cheaper. Rabattschutz also lapses when you switch insurer.

Sources

NAMMERT insurance broker

Request a quote: Car insurance

We compare several insurers and come back with a proposal. Free for you; the insurer pays our fee. You can write in English.

1Who is it for?

Personal My company

2Which insurance?

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

Personal

Business

Please review all my existing policies

3Details

Car insurance in Germany (liability, partial and fully comprehensive)

Vehicle (make, model, power) * Most precise with the HSN and TSN codes from the registration document Year of first registration * Current no-claims class (liability) * Annual mileage * Who drives the car? * Cover required * Is the car kept in a garage overnight?

4Your current policy

Current insurer Policy ends on What matters more to you?

5How can we reach you?

Name * Email * Phone Postcode Town Preferred contact Anything else we should know