Car accident in Germany, what does the other party's insurance pay?
Expert says:
Repair costs: 15,393.63 (18,318.42 including VAT)
Replacement value: 20,487.80 (21,000 including VAT)
Residual value: 9,120.00 incl. VAT
I'm from the US and everything is a bit complicated.
The police said it was the other driver's fault. My insurance company said if they were the one paying out on the liability side, it would be a total loss. If it's a total loss, how much will the insurance company pay? Will we get the difference between the salvage value and the replacement value? If so, do we have to sell the damaged car to determine its value, or does the insurance company do that? I've attached a small photo of the appraisal.
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If it is a total loss, how much will the insurance pay?
Resale value less VAT – residual value, ie (€21,000 ÷ 1.19) – €9,120 = €17,647 – €9,120 = €8,527.
You will also receive a refund of the withheld VAT from the opposing insurance company upon presentation of the invoice for your replacement car.
If so, do we have to sell the damaged car to determine its value, or does the insurance company do that?
The opposing insurance company will continue to obtain residual value offers from various salvage buyers until you sell your scrap. The higher the residual value offer, the less the insurance company has to pay out!
If it can be proven that the repair is actually carried out, only the gross repair costs will be reimbursed.
If it's not repaired, it's a total loss. You'll be paid out the repair fee minus the residual value. What you do with the broken car is up to you.
With a replacement value of approximately €21,000, repair costs of approximately €18,000 don't constitute a total loss. Therefore, the residual value is irrelevant. You will be reimbursed for the repair costs.
What the police say about liability is irrelevant. What does the opposing insurance company say?
They are currently reviewing the report. They have issued a replacement car for the time being. They said it will take about a week to review the form. They accept that the other driver is at fault. He hit the car while it was parked.
It's good that the question of guilt is clear.
How is this done? Will an insurance adjuster be involved? You don't have to accept their report.
I advise you to get a lawyer. The opposing insurance company will pay for it.
14,800€
You will be reimbursed for the actual damage incurred. If a new vehicle is purchased or repairs are carried out, this includes VAT.
If you settle according to an appraisal, you will receive the net present value.
Furthermore, as a victim of this magnitude, you should hire a lawyer (who will also be paid for by the opposing insurance company).