Whether it’s an accident caused by someone else’s fault or self-inflicted damage when pulling out of a parking space, necessary body repairs are always a hassle. The degree to which your motor vehicle insurance covers the costs depends on whether it is pure body damage or a total economic loss.
What is body damage?
The body of a car is comprised of various components, such as:
- Frame
- Front and rear fairings
- Bumpers
- Fenders
- Spoilers
Side wallsThus, it forms the car’s structural basis. This excludes all components made of plastic or glass (e.g., windshield, headlights), the engine, and other mechanical and electronic components, as well as the car’s interior. Body damage occurs when parts of the body are damaged due to an accident. Typical situations include:
- Being rear-ended by another road user, which damages the rear panel.
- Parking your car under a house from which shingles have fallen and dented the roof of your car.
- Getting stuck on a pillar while pulling out of a parking garage, resulting in dented car doors on the sides.
Cost of Body Repair
The costs for body repair cannot be stated as a flat rate because they vary depending on the severity of the damage. If there is a minimal dent smaller than a euro coin, the costs can be relatively low, ranging from 50 to 150 euros. With some skill, you might even be able to repair such minor damage yourself using a body repair kit. However, it’s important to check if the paint needs to be touched up to prevent rust.
When is Body Repair Considered a Total Loss?
The term “total loss” refers to a situation where it is no longer economically viable to carry out a repair. There are two types of total loss:
Technical total loss:
The car is so severely damaged that repair is not feasible. This typically happens in severe traffic accidents where the frame is significantly compressed.
Economic total loss:
The vehicle can technically still be repaired, but the cost of body repairs would be excessively high, making the repair economically unviable. An economic total loss occurs when the repair costs exceed the vehicle’s replacement value, i.e., the cost of purchasing another vehicle of comparable quality.
Body Repair vs. Total Loss: What Car Insurance Indicates
When you need to file a claim for a minor repair with your car insurance, typically, a cost estimate from your repair shop suffices. However, for more significant damage, a vehicle expert is required to assess and prepare a damage report. This report outlines the damage, estimates repair costs, and determines both the car’s residual and replacement values.
The insurance company’s response to your claim will vary based on the report’s findings:
- For straightforward body repairs, the insurance will cover the actual repair costs.
- In cases of total economic loss, the insurance will not reimburse the full repair costs. Instead, you will receive the car’s replacement value.
- You have the option to sell your damaged vehicle to a salvage buyer. The sum of this sale (the car’s residual value) and the insurance coverage (the replacement value) equates to your vehicle’s value prior to the accident.
- If the car is considered a total economic loss, you can still proceed with repairs using the liable party’s insurance coverage, provided the repair costs do not exceed 130 percent of the car’s replacement value.