• ‍ Let: Getting paid out for the costs of the accident damage is an alternative to repairs.
• deductions: The value added tax and possible other deductions must be included in the fictitious statement.
• Processing time: Payment of the accident damage can take a few weeks, depending on the insurance and the report.
• Fictional billing: You will receive compensation without proof of repair, after calculation of the cost estimate or based on an expert opinion.

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Have accident damage paid out: What does that mean?

When a traffic accident happens and you are involved as an accident victim, the shock is deep for now. Motor vehicle damage usually occurs and an expert opinion is required. The compensation can be determined on the basis of an expert opinion.

In the course of claims settlement, there is more than just the option to have the accident damage repaired. As an injured party, you can also have the accident damage paid out instead. This is also known as fictitious billing. The amount of insurance loss often plays a role in this decision.

This process involves flexibility, but also risks and limitations. In this article, you will find out exactly what this is all about and what should be considered.

Fictional reckoning

The fictitious statement means that you will receive the damage amount directly into your account.

This allows you to decide for yourself how to handle it. This is the same sum that was calculated for repairing the vehicle in a workshop, based on the vehicle report or a cost estimate.

In the case of fictitious billing, the insurance of the other party involved in the accident or, in the case of personal fault, comprehensive motor vehicle insurance may cover the costs of property damage to the vehicle. You can therefore claim the compensation yourself. Should the damage be greater than expected, the injured party can consider updating the report so that the costs of the car damage are correctly assessed with the help of an appraiser.

The workshop repair, on the other hand, is called a specific statement and the repair costs are covered directly by the insurance company in this procedure.

When should you have the accident damage paid out?

It makes sense to pay out the accident damage in several cases, but this decision should be adjusted individually to the situation. Some of the situations are explained here:

Minor damage: If the accident damage is so small that it cannot restrict driving, it makes sense to have the accident damage paid out. For example, if it is a scratch in the sheet metal that is only an optical defect and it is not important to you to remove the scratch, it makes sense if you want to have the compensation paid out.

Old vehicle: If the accident vehicle is already older, the repair costs may be disproportionately high and not really worthwhile. In such a case, it often makes more financial sense to have the accident damage paid out.

Planned sale: If you are planning to sell the damaged vehicle, it may also be useful to choose the fictitious statement. In this way, you can withhold the payout amount and resell the vehicle with the accident damage. They may be better off here than with a repair.

Withdrawal procedure

With fictitious billing, there is a clear process that you can follow so that you can fulfill all necessary formalities and have your motor vehicle accident damage paid out with certainty.

Report a claim to the car insurance company

The first step after the accident is to contact the car insurance company. Contact with the insurance company should be made as soon as possible. Prompt contact can prevent a delay in settling claims.

It is best to be able to provide the insurance company with as many documents and evidence as possible. This includes, for example, the police accident report, photos of the location of the accident and the damage to the vehicle, and also the contact details of the person who caused the accident.

This ensures that the process starts correctly.

Hiring a car appraiser

Next, a motor vehicle expert must be commissioned to investigate the accident damage. The motor vehicle expert looks at the damage caused by the accident and calculates the amount of damage and repair costs.

The condition of the vehicle before the accident is also taken into account. Regular maintenance and past accidents play a role in determining compensation.

The car appraiser can either be provided by the insurance company or you can select a car expert yourself. It is important to remember that you have the right to choose an expert yourself so that there are no conflicts of interest with the insurance expert.

Submit an expert opinion to the insurance company

When the report has been completed by the motor vehicle expert, it should be forwarded to the insurance company. They then check the document and decide whether they are satisfied with the payout or whether further verification is required.

It is best to save a copy of the report yourself so that you can clarify any questions later on.

Review of the accident report by insurer

The insurance company reviews the report very carefully; after all, they must also reimburse it. If the insurer is satisfied with the statement in the report, the amount can be paid out to the victim of the accident.

The net repair costs are normally paid out, as VAT is only paid for an actual repair. Sometimes the insurance company makes deductions from the amount, but more is explained below.

Have the sum of the car damage paid out

When everything has been checked, the damage amount will be paid out. This means that the money is transferred directly to your account. The whole process takes a bit of time, depending on the complexity of the case. As a rule, you can expect 4 — 6 weeks.

Advantages and disadvantages of a payout

Of course, fictitious billing comes with both advantages and disadvantages. Before you make a decision in the event of a claim, these points should be carefully considered.

benefits

Flexibility: If you receive the money like this, the car with accident damage does not have to be repaired directly. You are more flexible and can use the money just as you need it. If repairing the damage is not the first priority, then you have the option to use it elsewhere.

Workshop repair: You can decide for yourself in which workshop the repair should be carried out. Perhaps you know a particularly cheap workshop, which saves you money, as the workshop that used insurance as an example is more expensive. If you are able to do this and have the necessary skills and tools, the vehicle can also be repaired yourself, which saves some costs.

Quick availability: Getting the accident damage paid out is faster than settling insurance with the workshop. The payout is therefore available more quickly.

drawbacks

Value added tax: In the case of a pure payout, they only receive the net amount. The full amount, including VAT, will only be refunded if there is an invoice from the workshop repair.

deductions: The insurance company may reduce the accident payout if the vehicle was previously worn out or the accident damage is minor.

Decrease in value: If you make the decision that you would like to have the accident damage paid out and do not immediately start the repair yourself, there may be a loss of value. The longer you wait before the repair, the more the resale value is reduced.

What deductions can be expected?

When withdrawing money, it is important to remember that the same amount is not paid out as calculated in the commissioned report or cost estimate. For injured parties, the question now is: Why don't I get the full sum of the damage? Here you will find the answer, because insurance can and will make certain deductions.

VAT deduction

What is often overlooked is the deduction of VAT. As a rule, this is only refunded in the event of a workshop repair. Otherwise, only the net repair costs will be paid out.

In the case of a high amount of damage due to major car damage, VAT can make a significant difference.

Deductions due to wear

As already mentioned above, insurance can make deductions if the car is older and signs of wear or wear, such as rust, occur.

Insurance disagreements

If the insurance company rates the insurance loss as too high, there may be subsequent assessments. This happens, for example, when the insurance company believes that the repair costs have been overcharged.

What to do if the insurance company disagrees?

It is not uncommon for there to be disagreements between the insurance company and the injured party, even when it comes to having accidental damage paid out. This happens, for example, when the victim of the accident and the insurance company hire various experts and they do not agree on the claim for compensation after the car has been assessed. There is then disagreement as to how much of the costs of the accident damage is covered by the insurer.

reasons for disagreement

There are a few reasons for disagreement, including the following:

Damage assessment: The insurance company estimates the damage to be less significant than the appraiser

Necessity of repair costs: The insurance company doubts whether certain repairs are necessary in the workshop

Level of damage: The insurer finds that the costs of repair in the workshop are set too high

Renegotiations with insurance

If there are disagreements, you should not accept the insurance company's initial offer, but check it out and try to clarify the differences in a conversation. This often involves renegotiations.

Make sure that you have all relevant documents, such as an expert opinion or accident report, with you during the interview. When explaining your arguments, make sure that they are factual and comprehensible so that the arguments are convincing you to have the full costs of the accident damage paid out.

If further damage is discovered later, it makes sense to have the report updated.

If no solution can be found, you should hire an independent second expert. With his neutral expertise, he can assess the damage following the car accident and come to a conclusion with which the victim of the accident is also satisfied.

In case of doubt, you should seek legal status. A lawyer who is particularly familiar with traffic law can best help you in the event of a car accident. An out-of-court settlement may be reached or, in extreme cases, you may go to court to enforce your claim to have the full accident damage paid out.

Withdrawal period

Anyone who wants to have the accident damage paid out should keep in mind the duration of the process.

How long does it take until the money is in my account?

It takes some time from contacting the insurer, via hiring a car appraiser, the Claims report Report to the insurance company and check the repair costs by the insurance company.

You can expect approximately 4 to 6 weeks of time for fictitious billing. However, this may vary from case to case.

influencing factors

Of course, there are also factors that influence the duration. As an injured party, you can influence a lot yourself and have the option to go through the process as quickly as possible.

Claim report: The sooner the insurer is contacted, the faster the car's appraisal begins. This also brings you closer to the payout faster.

Complexity: The complexity of the accident and the resulting accidental damage also makes Accident report usually more complicated and lengthy. The appraiser must examine the accident vehicle more closely in order to determine the amount of damage to the vehicle.

conclusion

Having accident damage paid out has both advantages and disadvantages. You benefit from flexibility and freedom of use of money. On the other hand, you have to accept deductions. The question of whether you should opt for a fictitious statement or a regular repair depends on the individual situation of the respective insurance claim and the injured party.

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