The liability insurance of the person responsible for the accident must pay for the repair costs of the injured party in accordance with Section 249 of the German Civil Code (BGB). But what if you don't want to have your car repaired at all? We will be happy to help you with this question and explain everything you need to know about "fictitious settlement" in this guide.
- In principle, you have the option of having the assessed amount of damage paid out to you if you do not wish to have your car repaired.
- Amount of damage: material costs, labour costs for workshop, VAT and other items.
- However, you must expect reductions in the event of a fictitious settlement.
- A fictitious settlement may be worthwhile, but not necessarily.
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Fictitious settlement: Do not have the accident damage repaired
Compulsory liability insurance in Germany is intended to ensure that accident victims are reimbursed for the damage they have suffered through no fault of their own. As part of the claims settlement process, the costs of the repair and everything that goes with it are claimed from the insurance company of the party responsible for the accident. The aim of the repair is to restore the vehicle to its condition before the accident.
However, if you do not want to have your car repaired at all, for example because the dent does not bother you at all, this does not mean that the claim for damages under § 249 BGB is lost due to the accident for which you are not at fault. On the contrary: the opposing insurance company is also obliged to pay a fictitious settlement.
What does a fictitious settlement mean?
The opposing party's insurance company usually settles according to the repair invoice from the garage. This is a concrete settlement. One Fictitious settlement A fictitious invoice, on the other hand, only corresponds to the value of a professional workshop repair and is either issued by an accident assessor or is based on the cost estimate of a workshop. A fictitious settlement is therefore a "substitute invoice".
Fiction is the imagination. You imagine the repair and the associated costs. And on the basis of this mental model, you can have the insurance claim paid out. Fictitious settlement is therefore also called "settlement on the basis of the expert opinion".
In practice, a cheaper garage is often subsequently commissioned, the car is repaired itself or nothing is changed on the car at all. Consequently, it is not the repair costs that are reimbursed, as these are not incurred - or only to a much lesser extent - but the costs that would have been incurred if the damage suffered through no fault of the driver had been repaired.
Prerequisite for fictitious billing
A fictitious settlement is always possible. The insurance company may not point out to you that you are not allowed to make a fictitious settlement. The injured party has the right to choose whether or not to have their vehicle repaired after an accident in accordance with Section 249 BGB.
If you want to shine with technical terms: You are the master of the restitution process. As the victim of an accident, you can therefore freely dispose of the amount of compensation from the insurance company and do not necessarily have to invest this amount in repairing the vehicle. You can also have a fictitious settlement based on an expert opinion or cost estimate.
There is one prerequisite for fictitious billing: Your car must be roadworthy.
However, if your vehicle is no longer roadworthy due to an accident or is no longer safe to drive, it should be repaired. If you decide against repairs, you will no longer be allowed to use your car on the road. If your vehicle is a total loss, the so-called 130 per cent rule applies. You can then decide whether you want to have your vehicle repaired or have the damage to the vehicle paid out, i.e. settle it fictitiously. You can find further information on the 130 per cent rule here.
Procedure for fictitious settlement
The amount of damage must first be precisely and reliably quantified. To do this, ask an expert to draw up a report. The expert will base his calculation on the hourly rates charged by a branded specialist garage. You indicate to the insurance company that you would like a fictitious settlement. After checking the claims for compensation, the compensation will be paid to you net - i.e. less the VAT not incurred.
How long does a fictitious settlement take?
There is no general answer as to how long your fictitious settlement will take. If the facts are clear and the insurer on the other side reacts in an exemplary manner, the money may be in your account within a few days. Unfortunately, we have also seen cases in practice where partial payments have to be fought for months later. This is because the insurance company often endeavours to reduce or delay payment in the event of a fictitious settlement.
Have accident damage paid out: Amount of the claim
The amount of damage is made up of the costs for the spare parts, the labour costs for the workshop, any transport costs to and from the painter, VAT and the possible Impairment together. In a fictitious settlement, the amount of damages is usually lower than in a concrete settlement, as it is based on a different calculation method.
NoteThe opposing insurance company is keen to minimise the amount of damage as much as possible. If you act carelessly, you may not receive the full amount of compensation from the insurance company. As a result, there are always legal disputes regarding the reduction in value, as no mandatory calculation method has been prescribed by law.
If you are toying with the idea of a fictitious settlement, utilise the expertise of a traffic law specialist from the outset. Experience shows that it is possible to counteract the reduction of your claims with the first letter to the insurer liable to pay. Unfortunately, it is almost obligatory for insurers to try to reduce claims, but for most injured parties it is difficult and time-consuming to defend themselves against these unlawful complaints and to obtain the payment to which they are entitled. If you report your accident on the fairforce.one platform, you will have experienced specialists with a thousand times proven expertise at your side from the very first minute.
Don't risk any reductions from the other party's insurance company - have your accident free of charge and without obligation by our regulation specialists.
No reimbursement of VAT for fictitious invoicing
In the case of fictitious settlement, for example, the reimbursement of VAT is not applicable. This is because according to Section 249 BGB, the opposing insurance company does not have to pay VAT for services not rendered. In the case of a repair, on the other hand, VAT is due at the end and is therefore also part of the damage to be reimbursed. As the injured party, you will therefore only receive the net amount in the fictitious settlement. If you would like to have your vehicle repaired after a fictitious settlement has been completed or carry out a repair yourself or even buy an equivalent car, you can then have the VAT actually incurred reimbursed by the insurance company.
Other damage items are also treated differently in the fictitious settlement. In the case of a workshop repair, the transport costs to and from the painter are covered by the opposing insurance company. This does not apply to a fictitious settlement. There are sometimes contradictory statements regarding compensation for loss of use or reimbursement of hire car costs in connection with fictitious settlements. We do everything we can to always get the best for you.
What needs to be considered in a fictitious settlement?
Even if it sounds tempting to simply have the money paid out by the generic insurance company, caution is advised. Although a fictitious settlement is worth considering for minor damage such as dents or scratches that do not affect the vehicle's roadworthiness, minor damage to the paintwork can quickly lead to entire vehicle parts having to be replaced.
Fictitious billing according to expert opinion
For vehicles that are as good as new or more expensive, it is important that the fictitious settlement is not based on the workshop's cost estimate, but on a Expert opinion to measure. When paying for the estimate without repair, the loss in value of the vehicle is not taken into account due to the obligation to label it as an accident vehicle. This means that you lose money at the time the vehicle is sold. By notifying fairforce.one, you can secure an expert opinion and reimbursement of the depreciation. Although many depreciation after accident calculators give you an initial indication, it is advisable to enforce your claims with traffic law experts.
Good to knowOther damage items are also disputable. In this case, the expert who wrote the accident report is relevant. In the case of damage that is not minor (minor bodywork damage or dents, damage amount less than EUR 1,000), you are generally entitled to your own expert. If an expert opinion is provided by the other party, the other party's insurance company must then also pay an expert of your choice. You should therefore never agree to the opposing insurer paying for the expert's report in the event of a fictitious settlement.
CautionThe opposing insurance company can object!
It becomes difficult for you if you only have minor damage to the vehicle and you nevertheless commission a second expert. The other party's insurance company usually does not have to pay the costs of the second expert. Problems also arise if there are ambiguities in the expert report or if there is a suspicion that you are using the money from the fictitious settlement to repair your vehicle illegally. This then regularly leads to legal proceedings and consequential costs for you.
Accident victims in your situation simply get the best support from fairforce.one.
Fictitious billing: Reductions by insurers
You wanted to make a fictitious settlement and received a reduction disc? Unfortunately, it is now routine for almost all motor vehicle insurers to send the documents you have submitted to so-called verification service providers. Companies such as ControlExpert or ClaimsControlling prepare so-called inspection reports for the insurer in series, which are nothing other than reductions of your claims. Some inspection service providers have even concluded contracts with insurers in which specific targets for the average reduction of claims from injured parties like you are contractually agreed.
Examples are the reference to a cheaper workshop or a transfer that is not necessary, etc... So don't take it too personally if you have received a letter of curtailment. Respond professionally and use a service provider: we'll sort it out for you!
Is it worth paying out for the accident damage?
There is no generalised answer to this question. The greater the damage, the more complex the correct answer. And that is why we are here for you. Thanks to our tested network of specialists, we can give you a concrete answer as to whether a fictitious settlement is worthwhile for you or not. Although there are some "accident damage payout" calculators on the internet, these are often inaccurate and do not reflect your specific claims. It is therefore better to contact experts who will ensure that you receive what you are entitled to.
Do you want to know what claims you are entitled to with a fictitious settlement and whether this is the right way for you? Do you want to make a professional and straightforward fictitious settlement and receive the payout? We can help you. Our network of specialists will carry out the complete examination and settlement of the claim for you.
The secure procedure at a glance:
Can I have a fully comprehensive claim paid out?
There is only a right to the payment of damages via the fictitious settlement in the case of liability claims. In the case of fully comprehensive damage, many insurance companies do not allow the repair costs to be paid out. Corresponding passages stating that repair costs are only covered in the event of an actual repair can usually be found in the contract documents.
