🧾 Fictitious settlement and expert reports

Money instead of repair: when you can settle on a fictitious basis, what an expert report does and why value added tax is not paid.

fictitious settlement expert report cost estimate value added tax 130 percent rule replacement value minor damage total loss

In brief

You do not have to have your car repaired after an accident. You can also have the damage paid out. This is called fictitious settlement.

The basis is usually a report by a motor vehicle expert or a cost estimate.
You only get value added tax if it was actually incurred. With fictitious settlement it is not paid.
For small damage (case law: about 700 to 750 euros, rising), expert report costs are not reimbursable; a cost estimate is enough.
Repair costs of up to 130 percent of the replacement value are only compensable if you have the repair carried out completely and professionally according to the report and keep using the car for at least 6 months. Without repair, you get at most the replacement value minus residual value.
In case of total loss, the replacement outlay counts: replacement value minus residual value.

Step by step

Establish the amount of damageIf the damage is not very small, hire a motor vehicle expert.
DecideHave it repaired or settle on a fictitious basis.
Pass on the reportSend the expert report to the other party's insurer.
Check the amountsCheck whether items (loss of use, diminished value) were taken into account.

Deadlines

130 percent

Limit of repair costs relative to the replacement value; compensable only with complete professional repair according to the report and at least 6 months' continued use; fictitious settlement on a 130 percent basis is excludedestablished BGH case law on § 249 BGB (including VI ZR 89/07)

approx. 700 to 750 euros

Minor-damage threshold (rising): below it, expert report costs are not reimbursable, a cost estimate is enoughcase law, inconsistent

Watch out – common mistakes

With fictitious settlement there is no value added tax; value added tax actually incurred is compensated.
The minor-damage threshold is not a statutory figure and is being raised by case law; have it checked in the individual case.
You may choose the expert freely. With fictitious repair settlement, however, the insurer can refer you to an equivalent, cheaper, reasonable independent garage (BGH VI ZR 53/09).
Do not forget loss of use and diminished value.

In depth · legal basis, figures and practice – for advisers and professionals

Legal basis, § 249 Abs. 2 BGB

In the case of damage to property, the creditor can demand the sum of money required for restoration instead of restoration. Under Satz 2, value added tax is included only if and to the extent that it has actually been incurred. With fictitious settlement the amount is therefore net.

130 percent limit

According to established BGH case law, repair costs may exceed the replacement value by up to 30 percent, but only with complete professional repair according to the report and at least 6 months' continued use (BGH VI ZR 89/07). Without repair, fictitious settlement on a 130 percent basis is excluded; only the replacement value minus residual value is available.

Total loss and residual value

The replacement outlay is the replacement value minus residual value. The injured party may base the claim on the residual value determined by a regional expert; they do not have to wait for offers from residual-value exchanges named by the insurer.

Minor-damage threshold and expert report costs

According to case law (about 700 to 750 euros, rising), expert report costs below this threshold are not reimbursable; a cost estimate is enough. Above it, expert report costs are reimbursable.

Freedom of choice and referral

The injured party does not have to look for the cheapest expert (ADAC). With fictitious repair settlement, however, the insurer can refer them to an equivalent, cheaper, reasonable independent garage (BGH VI ZR 53/09).

Who is responsible

Independent motor vehicle expert
Other party's motor liability insurer
Garage

Quick questions

Worum geht es bei „Fictitious settlement and expert reports“?

Money instead of repair: when you can settle on a fictitious basis, what an expert report does and why value added tax is not paid.

Which deadlines and figures matter?

130 percent: Limit of repair costs relative to the replacement value; compensable only with complete professional repair according to the report and at least 6 months' continued use; fictitious settlement on a 130 percent basis is excluded (established BGH case law on § 249 BGB (including VI ZR 89/07))
approx. 700 to 750 euros: Minor-damage threshold (rising): below it, expert report costs are not reimbursable, a cost estimate is enough (case law, inconsistent)

What should I do first?

Establish the amount of damage: If the damage is not very small, hire a motor vehicle expert.
Decide: Have it repaired or settle on a fictitious basis.
Pass on the report: Send the expert report to the other party's insurer.

What do I need to watch out for?

With fictitious settlement there is no value added tax; value added tax actually incurred is compensated.
The minor-damage threshold is not a statutory figure and is being raised by case law; have it checked in the individual case.
You may choose the expert freely. With fictitious repair settlement, however, the insurer can refer you to an equivalent, cheaper, reasonable independent garage (BGH VI ZR 53/09).

Evidence

Bundesministerium der Justiz (Federal Ministry of Justice), Gesetze im Internet: BGB § 249, retrieved 20 September 2026
ADAC, Verkehrsunfall: Diese Kosten muss die gegnerische Versicherung zahlen, retrieved 20 September 2026
Bundesgerichtshof (Federal Court of Justice), judgments VI ZR 89/07 (130 percent limit) and VI ZR 53/09 (referral to an independent garage)

As of

September 2026 · Sources and method

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