Insurance broker / Insurance questions / Car insurance

What does insurance pay for a total loss?

In short

Usually you receive the replacement value minus the salvage value: the price of a comparable used car minus what the wreck still fetches. If someone else caused the accident, their liability insurer pays. If you caused it, only your comprehensive cover (Vollkasko) pays, minus your deductible. You only get the new price if your policy includes new-price compensation.

Request a quote +49 3375 29 12 77

What does insurance pay for a total loss?

What it costs

Examples from published calculations and policy terms, 2026.

Example	Typical range
Comprehensive cover, replacement value EUR 8,300, salvage value EUR 2,100, deductible EUR 300	about EUR 5,900 paid out
New car for EUR 38,000, total loss after 8 months, with new-price cover	about EUR 38,000 instead of about EUR 29,000
Other driver at fault, replacement value EUR 10,000, you want to repair	repairs up to about EUR 13,000 can be claimed
New-price period in policies	usually 6 to 24 months, some 36 months

Example figures from publicly quoted calculations and terms, as of September 2026. The extra premium for new-price cover is a guide value from our quoting practice and is often small. What you receive depends on the assessment and your policy terms.

Worked example

Used compact car, accident you caused

How comprehensive cover calculates when repairs would cost more than the car is worth.

Replacement value per assessment	EUR 8,300
Salvage value of the wreck	minus EUR 2,100
Comprehensive deductible	minus EUR 300
Proceeds from selling the wreck	plus EUR 2,100

The insurer pays EUR 5,900; with the sale of the wreck you have EUR 8,000 for your next car.

Who pays: the other side, your own cover or nobody

If another driver caused the crash, their liability insurance pays for your car, usually plus the assessor, towing and loss of use or a rental car. No deductible applies.

If you caused it, only your comprehensive cover helps. Partial cover (Teilkasko) pays for a total loss only for specific causes such as fire, theft, storm, hail or hitting a wild animal. With liability only and your own fault, you get nothing for your car.

Situation	Who pays	Roughly what
Other driver fully at fault	their liability insurer	replacement minus salvage value plus extra costs
Your fault, comprehensive cover	your insurer	replacement minus salvage value minus deductible
Hail, fire, theft, wild animal	your partial cover	as above, depending on terms
Your fault, liability only	nobody	nothing for your own car
New car with new-price cover	your comprehensive cover	the new price within the agreed period

How the payout is calculated

An assessor (Gutachter) estimates the repair cost, the replacement value (Wiederbeschaffungswert), meaning the price of a comparable used car, and the salvage value (Restwert) of the damaged car. If repairs would cost more than the replacement value, the car counts as an economic total loss.

You are paid the difference between replacement and salvage value. The wreck stays yours and you sell it, often to a buyer the insurer names. Check the salvage offer before selling: if you sell for much less, the gap is your loss.

The 130 percent rule only applies against the other side

If you want to keep your car and someone else is at fault, you may generally have it repaired for up to about 130 percent of the replacement value. The repair must be done properly according to the assessment and you must keep driving the car. A makeshift fix does not count.

Your own comprehensive cover has no such rule. It stops at replacement value minus salvage value, even if you repair.

New price, leasing and car loans

With new-price compensation (Neupreisentschädigung) your comprehensive cover pays the new price instead of the used value for a period after first registration, usually 6 to 24 months. Many policies require you to be the first owner and also treat repair costs from about 80 percent of the new price as a total loss.

With a lease or loan, the amount you still owe is often higher than the replacement value. Only GAP cover pays that gap. Without it you pay the difference yourself, even though the car is gone.

What changes if you are new to Germany

Claims are handled in German, and assessment reports and letters from the other insurer will be in German too. You may appoint your own independent assessor if the other side is at fault, and their liability insurer pays for it.

A total loss you caused under comprehensive cover moves you down in the no-claims class (Schadenfreiheitsklasse), which raises your premium for years. Losses under partial cover, like hail or a wild animal, do not.

Step by step

Secure the scene and call the police if anyone is hurt or fault is disputed.
Report the claim to your insurer at once, and to the other driver's insurer if they are at fault.
Wait for the assessment; if the other side is at fault you may choose your own assessor.
Check the salvage offer and only then sell the wreck.
With a lease or loan, inform the lender straight away and ask for the settlement amount.

Checklist

Comprehensive cover for new, leased or financed cars
New-price compensation with a long enough period for new cars
GAP cover for leasing or car loans
Waiver of the gross negligence defence
A deductible you could pay at once

Common mistakes

Selling the wreck before the assessment and salvage offer are in
Accepting the other insurer's assessor without checking when they are at fault
Counting on the 130 percent rule although you caused the accident
Skipping comprehensive cover on a financed car and being left with the loan

Questions and answers

Frequently asked

Do I get the new price after a total loss?

Only if your comprehensive cover includes new-price compensation and the loss happens within the period. Otherwise you get the used value.

Do I have to hand over my car?

No. The wreck is yours. You can sell or repair it, but the salvage value is deducted from the payment.

Is my deductible taken off?

Under your own cover, yes. If the other driver's liability insurer pays, there is no deductible.

Who pays if I caused it and only have liability cover?

Nobody pays for your own car. Liability only covers damage to others.

Is VAT refunded?

Only if you actually pay it, for example when buying a replacement car from a dealer or on a repair invoice.

Will my premium go up after a total loss?

Under comprehensive cover, yes, if you were at fault. Hail, fire, theft or wild animal claims under partial cover do not affect your no-claims class.

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