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Can I take the cash for accident damage instead of repairing my car in Germany?

In short

Yes, you can take the cash instead of repairing your car. After an accident in Germany caused by someone else, you may settle on a notional basis (fiktive Abrechnung): you get the repair costs per expert report, minus the 19 percent VAT (§ 249 BGB). For accident damage to cars up to three years old or dealer serviced, dealer labour rates count. With your own comprehensive cover this also works, minus your deductible.

Can I take the cash for accident damage instead of repairing my car in Germany?

What it costs

Figures and costs around notional settlement, as of November 2026.

ExampleTypical range
VAT not paid out in a cash settlement19 percent of the repair costs
Workshop hour for mechanics, electrics and bodywork, average 2024about EUR 202
Workshop hour for paintwork, average 2024about EUR 220
Expert report for typical damageusually EUR 500 to 800
Cut from referral to an independent garage for medium body damageoften EUR 200 to 500

Labour rates according to the German insurance association for 2024,

expert costs from the guide named.

The size of the cut after referral to an independent garage is a guide value from our quoting

practice.

Worked example

Six year old compact car, rear damage, other driver solely at fault

The expert report states EUR 3,570 gross for the repair. Replacement value EUR 11,000, the car was last serviced at an independent garage.

Gross repair costs per expert reportEUR 3,570
VAT, not paid in a cash settlementminus EUR 570
Possible cut after referral to an independent garage (guide value)minus EUR 200 to 500
Paid out to youabout EUR 2,500 to 3,000
Expert report, paid by the other party's insurerEUR 600

You get about EUR 2,500 to 3,000 and decide yourself what to do with it. With a repair and an invoice, you would get the full costs on the invoice.

Your right after an accident that was not your fault

Whoever damages your car must pay for the damage. Under § 249 (2) of the German Civil Code (BGB), you may claim the amount of money needed for the repair instead of the repair itself. What you do with the money is up to you: have it repaired, repair it yourself, drive on with the dent or sell the car.

The basis is an expert report (Gutachten) or, for small damage, a cost estimate (Kostenvoranschlag). If the damage is above the minor damage threshold, the other party's liability insurer pays for the expert.

RouteWhat you getVAT
Repair at a garage with an invoicethe costs on the invoiceyes
Cash payout without repairrepair costs from the expert reportno
Own repair, parts with invoicenet amount from the expert reportonly on parts actually paid for, depending on the case
Repair costs above replacement valuereplacement value minus residual valueonly for a replacement purchase, to the extent paid
Own comprehensive cover without repairnet, at most replacement value minus residual value, minus deductibleno

VAT is not paid

Under § 249 (2) sentence 2 BGB, VAT (Umsatzsteuer) is only part of the compensation if and to the extent it was actually incurred. If you take the cash, you get the net amount. At 19 percent, that is EUR 570 less on EUR 3,570 gross.

If you can reclaim input VAT, for example with a company car, you work with net figures anyway. For you a notional settlement makes no tax difference.

Which labour rates apply

In a notional settlement you may generally use the usual hourly rates of a brand dealer workshop in your region. The other party's insurer may refer you to a cheaper independent garage, but only if it shows that it is equivalent and easy to reach (BGH, 20.10.2009, VI ZR 53/09).

According to the ruling, this referral is mainly unreasonable for cars up to three years old and for cars always serviced and repaired at a brand dealer. So keep your service book and invoices to hand.

When the damage is almost as high as the car's value

If the repair costs are above the replacement cost (Wiederbeschaffungsaufwand), meaning the value of an equivalent used car minus the residual value, but below the replacement value (Wiederbeschaffungswert), you only get the full repair costs on a notional basis if you keep using the car for at least six months (BGH, 23.05.2006, VI ZR 192/05). If you sell earlier, you only get the replacement cost.

If the repair costs are above the replacement value, the car is an economic write off (wirtschaftlicher Totalschaden). Without a repair, the replacement value minus the residual value is then what counts.

Cash payout from your own comprehensive cover

If you caused the damage yourself, your comprehensive cover (Vollkasko) pays. Under the model terms this also works without a repair: then net and at most up to the replacement value minus residual value, minus your deductible. Here too the insurer may not simply use the rates of an independent garage it picked (BGH, 11.11.2015, IV ZR 426/14).

Unlike a liability claim, comprehensive cover under the model terms pays nothing for loss in value. And your no claims class is downgraded whether you repair or not.

When repairing is the better choice

For damage that affects safety, for example to the axle, steering, brakes or lights, a payout is not a good idea. The car must stay roadworthy.

With leasing or finance, the contract usually requires a proper repair. If you take the cash, you often pay a deduction when you return the car, which can be higher than the money paid out. For a new car you plan to drive for a long time, a repair with an invoice is usually worth more. If you plan to leave Germany soon and sell the car, keep the six month rule in mind.

Step by step

  1. Get an independent expert report; for small damage a cost estimate is enough.
  2. Find your service book and workshop invoices if the car was serviced at a brand dealer.
  3. Tell the other party's insurer that you are settling on a notional basis per the expert report.
  4. Check any cuts and referrals to other garages carefully.
  5. With major damage, keep using the car for at least six months before you sell it.

Checklist

  • Fault clear or liability share agreed
  • Expert report with brand dealer labour rates in your region
  • Age of the car and service records ready
  • Gap between repair costs and replacement value checked
  • Leasing or loan contract read for a duty to repair
  • Safety related parts repaired anyway

Common mistakes

  • Counting on the gross amount from the expert report
  • Selling the car soon after major damage and missing the six month rule
  • Accepting cuts to labour rates without checking
  • Taking the cash for a leased car and paying twice on return
  • Not repairing safety defects

Questions and answers

Frequently asked

Do I have to tell the insurer whether I repair?

You have to choose a method of settlement.

On a notional basis you settle per the expert report and need not show an invoice.

Can I repair later and still claim the VAT?

VAT is only paid to the extent it is actually incurred.

Get advice first, because notional and actual settlement cannot be mixed at will.

Can I repair it myself and keep the rest?

Yes.

You get the net amount from the expert report.

Whatever you save by doing it more cheaply stays with you.

Does this also apply if I was partly at fault?

Yes, but you only get the share the other party is liable for.

At 50 to 50, that is half the net amount.

Do I have to keep the car after the payout?

Only if the repair costs are above the replacement value minus residual value and you want the

full repair costs.

Then the BGH expects six months of further use.

Does a payout affect my no claims class?

Not with the other party's liability claim, your own policy is not affected.

If you settle through your own comprehensive cover, your no claims class is downgraded.

Sources

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