Motor vehicle claims settlement after a road accident

After a road accident, the injured party often faces a tough struggle with the opposing insurance company. The Claims settlement after a motor vehicle accident is a complex process in which a lot of money is at stake - and in which insurance companies systematically try to minimise their payments. As the injured party, however, you have Comprehensive rights, that you should know and enforce.

In this guide you will learn how the Motor vehicle claims settlement expires, which claims you are entitled to and why it is worth taking out a Specialist lawyer for traffic law switch on.

What is a claims settlement?

Under Claims settlement is the entire process of handling a claim - from the accident report to the assessment of the damage to the payment of compensation. In the event of a road accident, the Motor vehicle liability insurance of the person responsible for the accident responsible for regulation.

The aim of claims settlement is to put the injured party in the same position as if the accident had never happened. This principle of Total repair is enshrined in § 249 BGB. In practice, this means that all accident-related damage - both to the vehicle and to health - must be compensated in full.

Parties involved in the settlement of claims

On a typical Claims settlement in the motor vehicle sector several parties are involved:

• The injured party - You as the claimant with the right to full compensation
• The opposing party's liability insurance - settles the claim and is obliged to pay
• The motor vehicle expert - prepares the damage report as a neutral basis for assessment
• The specialist lawyer for traffic law - Represents the interests of the injured party and enforces claims

Important to know: The opposing insurance company is not your partner. It pursues its own economic interests and will try to settle the claim as cheaply as possible - to your disadvantage.

Claims settlement after a road accident - step by step

A successful Claims settlement after a road accident follows a clear procedure. If you know the individual steps, you can assert your claims better and avoid typical mistakes.

Step 1: Secure and document the accident site

Immediately after the accident, you should secure the accident site, take photos and record the personal details of everyone involved. Always call the police in the event of personal injury or if it is unclear who is at fault. One Complete documentation is the basis of every successful motor vehicle claims settlement.

Step 2: Hire your own motor vehicle expert

If the damage exceeds the de minimis limit (approx. €750), you as the injured party have the right to request a own independent motor vehicle appraiser at the expense of the opposing insurance company. Do not allow yourself to be referred to the insurance company's expert. A neutral expert opinion is crucial for the correct assessment of the damage.

Step 3: Report the damage to the opposing insurance company

Report the damage in writing to the motor vehicle liability insurance company of the party responsible for the accident. In doing so, send the expert report, the accident report, photos and all relevant receipts. The insurance company usually 4 to 6 weeks Time for testing and regulation.

Step 4: Check regulatory offer

Check the insurance company's offer carefully. Experience has shown that initial settlement offers are often 20 to 30 per cent lower than the actual claim. Typical reductions relate to hourly rates, car hire costs, loss of use and compensation for pain and suffering.

Step 5: Enforce claims

If the insurance company reduces or rejects your claim, you should Specialist lawyer for traffic law switch on. If the accident was not your fault, the legal costs will be borne by the other party's insurance company. Only with the support of a lawyer do many injured parties achieve a Complete claims settlement.

What claims do you have as the injured party?

With a Claims settlement as a motor vehicle victim you are entitled to numerous claims. Many of those affected are only aware of a fraction of their rights and are therefore giving away money. Here is an overview of the most important claims:

Repair costs

You are entitled to the full repair costs according to the expert report - including the hourly rates of a brand-affiliated specialist garage. The insurance company may not refer you to a cheaper independent garage if your vehicle is less than three years old or if you have had it serviced at a brand-name garage up to now.

Replacement value for total loss

In the event of an economic total loss (repair costs exceed the replacement value), you are entitled to the Replacement value less residual value. Caution: The insurance company often works with inflated residual value offers from Internet residual value exchanges. An independent expert determines the realistic residual value on the regional market.

Car hire costs

For the duration of the repair or replacement, you are entitled to a Rental car of the same vehicle class to. The costs are borne by the opposing insurance company. The repair period stated in the expert opinion plus a reasonable procurement period - usually up to 14 days - applies to the rental car period.

Compensation for loss of use

If you do not take a hire car, you are alternatively entitled to a Compensation for loss of use. This depends on the type of vehicle and amounts to between €23 and €175 per day, depending on the model. This item is also often underestimated or completely rejected by insurance companies.

Reduction in value (mercantile reduction in value)

A repaired accident vehicle is worth less on the used car market than an accident-free vehicle of the same type. This Marked reduction in value is available to you as compensation. For vehicles up to around five years old and with a mileage of less than 100,000 kilometres, the reduction in value can amount to several thousand euros.

personal injury compensation

In the event of personal injury - such as a Whiplash after an accident through no fault of your own - you are entitled to personal injury compensation. The amount depends on the type and duration of the injury, the duration of treatment and the impact on your everyday life. Experience has shown that compensation payments for pain and suffering are significantly lower without negotiation with a lawyer.

Appraisal costs

The costs for the our own independent motor vehicle expert are eligible for reimbursement if the damage exceeds the de minimis limit. The expert opinion is your most important weapon when settling the claim - it forms the basis for all further claims.

Other damage items

You can also claim the following costs:

• Towing costs - Transport of the damaged vehicle
• Registration and deregistration costs - in the event of total loss and replacement
• Flat-rate costs - 25 € to 30 € for telephone calls, postage, copies
• Loss of earnings - in the event of incapacity for work due to an accident
• Household management damage - if you are unable to run the household due to injury
• Travelling expenses - to doctors, garage, lawyer

Insurance company reduces payment - what to do?

Unfortunately, it is the rule, not the exception: the opposing insurance company reduces the claims settlement or rejects individual items altogether. This applies particularly frequently to car hire costs, loss of use, hourly rates and compensation for pain and suffering.

Typical insurance cutback strategies

Insurance companies systematically rely on certain strategies when settling motor vehicle claims:

• Reference to more favourable workshops - You should use an independent workshop instead of a brand-bound specialist workshop
• Reduction in hourly rates - The insurance company only recognises lower rates than those shown in the report
• Excessive residual value offers - In the event of a total loss, the residual value is artificially inflated in order to reduce the payout
• Reduction of the hire car duration - The appropriate rental period is arbitrarily shortened
• Rejection of the impairment - The mercantile reduction in value is disputed or set far too low
• Minimisation of compensation for pain and suffering - Minor amounts are offered for personal injury

Your options for action

Do not accept an incomplete settlement offer. You have the following options:

1. Written objection - Explain in detail why the reduction is unjustified and set a deadline of 14 days
2. Ombudsman of the insurance industry - A free arbitration procedure, which, however, rarely leads to success with larger amounts in dispute
3. Call in a specialist lawyer - The most effective way: A Specialist lawyer for traffic law knows the tricks of the insurance companies and consistently enforces your claims
4. Action before the local or regional court - If the insurance company does not pay even after legal intervention, the only option is to take legal action

Important: The Legal fees in the event of an accident through no fault of your own are part of the damage and are borne by the opposing insurance company. A specialist lawyer therefore generally costs you as the injured party nothing.

Fictitious vs. actual damage settlement

With the Claims settlement in the motor vehicle sector you basically have the choice between two billing methods:

Concrete billing

For the actual settlement, you actually have the damage repaired and submit the Workshop invoice with the insurance company. This method is recommended if you wish to continue using the vehicle and the repair is to be carried out professionally.

Advantages of concrete billing:

• Full reimbursement of repair costs according to invoice
• Reimbursement of value added tax
• Entitlement to hire car or loss of use during the repair period

Fictitious settlement

With the fictitious settlement, you leave the damage Do not repair (or repair more cheaply) and settle the invoice on the basis of the expert report. You will receive the net repair costs - i.e. excluding VAT.

Advantages of fictitious billing:

• Free disposal of the money
• Possibility of more favourable self-repair
• Faster processing without a workshop visit

Attention: Since a BGH ruling in 2022, fictitious billing has been restricted under certain circumstances. Be sure to seek legal advice here to avoid any disadvantages.

Special cases in claims settlement

Joint liability and quota sharing

The question of guilt is not always clear. In the case of a Joint liability - for example, a rear-end collision preceded by unjustified braking - the claims are reduced proportionately. A typical quota division is 70/30 or 60/40. A specialist lawyer checks whether the allocated quota is justified and, if necessary, negotiates a more favourable distribution.

Leasing vehicle

Special rules apply to a leased vehicle. The lessor is the owner and must be involved in the settlement of claims. Repairs may only be carried out in workshops authorised by the leasing company. Fictitious billing is often excluded for leased vehicles.

Financed vehicle

If the vehicle is financed, the bank must be taken into account as the collateral owner. In the event of a total loss, the payment first goes to the bank to pay off the loan. If the replacement value exceeds the residual debt, you will receive the difference.

Why a specialised lawyer helps with claims settlement

Experience shows: Claimants who settle without the support of a lawyer receive on average significantly less than they are entitled to. A Specialist lawyer for traffic law brings decisive advantages:

• Experience with insurance strategies - The specialist lawyer is familiar with cutback tactics and knows how to defend against them
• Complete claim determination - Many damage items are overlooked by laypersons (reduction in value, loss of use, household damage)
• Professional negotiation skills - Insurance companies know that a specialised lawyer will enforce their claims in court
• No costs for the injured party - If the accident was not your fault, the other party's insurance company will pay the lawyer's fees
• Process management if necessary - If the insurance company does not give in, the lawyer will represent you in court

Especially with the Claims settlement after a road accident with personal injury, high property damage or disputed question of fault, legal representation is strongly recommended. The Reichelt law firm in Dresden specialises in traffic law and supports you in enforcing your claims.

Frequently asked questions about claims settlement (FAQ)

How long does a motor vehicle claims settlement take?

The duration depends on the complexity of the case. If the question of fault is clear and the documentation is complete, a claim settlement usually takes 4 to 8 weeks. In disputed cases or if the insurance company delays, it can take several months. The process can often be significantly accelerated with the support of a lawyer.

Do I have to accept the insurance company's expert?

No. As the injured party, you have the right to claim from a damage of approx. Right to your own independent expert. The costs for this are borne by the opposing insurance company. Our own expert works exclusively in your interest and provides a neutral damage assessment.

Who pays the lawyer for the claims settlement?

At a accident through no fault of your own the lawyer's fees are part of the damage and are borne by the opposing party's liability insurance. A specialist lawyer for traffic law therefore generally costs you as the injured party nothing. The lawyer's fees are also reimbursed on a pro rata basis in the event of partial fault.

Can I have my car repaired at the brand workshop?

Yes. For vehicles less than three years old or with continuous maintenance in a brand workshop, you are entitled to Repair at the hourly rate of a branded specialist workshop. In such cases, the insurance company may not refer you to an independent garage.

What happens if the insurance company doesn't pay out?

If the insurance company refuses to settle the claim or reduces it without justification, you should immediately contact a Specialist lawyer for traffic law switch on. They will initially enforce your claims out of court. If the insurance company remains stubborn, an action will be brought before the competent court.

Is a lawyer worthwhile even for small claims?

Even in the case of supposedly minor damage Items such as depreciation or loss of use overlooked. If the damage amounts to around €1,000 or more, it is almost always worth consulting a lawyer - especially as the legal costs are borne by the other party if the accident was not the fault of the driver.