📨 Claims settlement through motor liability insurance

How to register the damage with the other party's insurer and which items can be reimbursed.

claims settlement motor liability insurance direct claim repair costs diminished value flat expense allowance total loss damage report

In brief

The motor liability insurer of the person who caused the accident pays your damage, as far as that person is liable. You can register your claims directly with this insurer.

This includes, for example, repair costs, expert, rental car or loss of use, towing.
Diminished value can also be compensated. According to an ADAC rule of thumb, it comes into question for vehicles under 5 years old and under 100,000 km; this is not an absolute limit, and in individual cases an expert decides.
Small costs such as phone and postage are reimbursed as a flat sum. Mostly it is 25 euros (range 20 to 30 euros).
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).

The insurer must not pressure you to sign something quickly.

Step by step

RegisterReport the damage to the other party's insurer with the number plate, course of events and accident report.
Determine the damageObtain an expert report or a cost estimate (see the page on expert reports).
Collect receiptsKeep invoices, the towing receipt, receipts for incidental costs.
Check the settlementAsk about deductions made by the insurer; involve a lawyer if there is a dispute.

Deadlines

10 years (maximum)

The limitation period for claims against the insurer starts as for the person who caused the damage; it is suspended until the insurer's decision is received in text form§ 115 Abs. 2 VVG

3 years

Regular limitation period§ 195, § 199 Abs. 1 BGB

Watch out – common mistakes

With shared liability, damage and lawyer's costs are only reimbursed in line with the quota.
Do not sign insurer payments as a final settlement if consequential damage is still possible.
The flat expense allowance (mostly 25 euros, range 20 to 30 euros) comes from case law, not from a statutory figure.
Check deductions for labour rates or expert report items; not every deduction is justified.

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

Direct claim, § 115 VVG

The third party can also assert their claim for damages against the insurer, in the three cases of § 115 Abs. 1 Satz 1 VVG: compulsory insurance, insolvency of the policyholder and unknown whereabouts of the policyholder. The insurer and the liable policyholder are jointly and severally liable. The claim becomes time-barred like the claim against the policyholder; the start is the same point in time, but at most ten years from the occurrence of the damage. The limitation period is suspended until the insurer's decision is received by the claimant in text form.

Restitution in kind and monetary compensation, § 249 BGB

In the case of injury to a person or damage to property, the creditor can demand the sum of money required for restoration instead of restoration. Value added tax is included only to the extent that it has actually been incurred.

Diminished value

The ADAC rule of thumb (vehicle under 5 years and under 100,000 km) is not an absolute limit; in individual cases an expert decides.

Items according to ADAC

Repair invoice (including value added tax for private individuals), expert report costs, rental car, towing costs; diminished value; clothing, glasses, luggage; in case of total loss, re-registration and registration costs and disposal. ADAC: injured parties do not have to look for the cheapest expert; what matters is the view of a reasonable injured party.

Who is responsible

Other party's motor liability insurer
Motor vehicle expert
Lawyer specialising in traffic law

Quick questions

Worum geht es bei „Claims settlement through motor liability insurance“?

How to register the damage with the other party's insurer and which items can be reimbursed.

Which deadlines and figures matter?

10 years (maximum): The limitation period for claims against the insurer starts as for the person who caused the damage; it is suspended until the insurer's decision is received in text form (§ 115 Abs. 2 VVG)
3 years: Regular limitation period (§ 195, § 199 Abs. 1 BGB)

What should I do first?

Register: Report the damage to the other party's insurer with the number plate, course of events and accident report.
Determine the damage: Obtain an expert report or a cost estimate (see the page on expert reports).
Collect receipts: Keep invoices, the towing receipt, receipts for incidental costs.

What do I need to watch out for?

With shared liability, damage and lawyer's costs are only reimbursed in line with the quota.
Do not sign insurer payments as a final settlement if consequential damage is still possible.
The flat expense allowance (mostly 25 euros, range 20 to 30 euros) comes from case law, not from a statutory figure.

Evidence

Bundesministerium der Justiz (Federal Ministry of Justice), Gesetze im Internet: VVG § 115; BGB §§ 195, 199, 249, retrieved 20 September 2026
ADAC, Verkehrsunfall: Diese Kosten muss die gegnerische Versicherung zahlen, retrieved 20 September 2026

As of

September 2026 · Sources and method

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