An accident involving a new car is particularly annoying because the vehicle loses its „new car status“ despite repairs and there is almost always a noticeable reduction in value. In the event of a no-fault accident, the opposing party's liability must therefore not only pay the repair costs, but usually also compensate for the reduction in value and other accident-related claims. A genuine claim for replacement of a new vehicle can only be considered in very limited exceptional cases - typically with very low mileage and a short registration period.
- An accident involving a new car differs from one involving a second-hand car in that an accident involving a new car almost always results in a significant reduction in the car’s value.
- After a new car accident, you are often entitled to further claims in addition to the reduction in value and the repair costs, which you should have checked
- You may only be entitled to a new car if the vehicle involved in the accident was registered for less than one month and you have driven less than 1,000 kilometres with it since you bought it.
- As an insurance-independent network of specialists, we at fairforce.one are at your side for all questions relating to your road accident.
Accident with a new car - not just annoying
For most Germans, owning a car is very important and has long been more than just a set of wheels. Many people not only express their love of motoring through their cars, but also use brands, models and specifications as status symbols. New cars not only cost a lot of money, but are also tailored to the driver’s needs thanks to customisable configurations and specifications. This makes it all the more frustrating when a new car is involved in an accident through no fault of its own and sustains damage shortly after registration.
In addition to the annoyance of scratches, dents and damage, many owners are concerned with a much more important question: what about depreciation and who actually replaces the status of the new car? Because even if a vehicle is only a few days, weeks or months old - after an accident, the vehicle counts as an accident vehicle and loses a lot of value. This is noticeable at the latest when reselling. But the feeling of driving an accident-damaged car instead of a new one is also a sour feeling for many car enthusiasts. But are you entitled to a new car after an accident?
Accident victims in your situation simply get the best support from fairforce.one.
Am I entitled to a new car as a replacement after an accident?
Many new car owners ask themselves whether they are entitled to a new car after an accident involving a new car. Normally, the opposing party's insurance company is only obliged to pay the repair costs and compensation for the resulting reduction in value.
A claim for a replacement new car against the other party’s third-party liability insurance is only considered in exceptional cases: namely, where the damage is so severe that you cannot reasonably be expected to continue using the repaired vehicle. In the case of damage that can be repaired professionally, however, the insurance company will cover the repair costs – and you are also entitled to compensation for the Impairment.
You are only entitled to a new car if it would be unreasonable for you to use a repaired vehicle. The reason for this unreasonableness is that the defect in the accident-damaged car cannot be rectified by repair. For this to be the case, the Accident report in particular, to establish that there has been significant damage. In its case law, most recently confirmed by the judgement of 29 September 2020 (VI ZR 271/19), the Federal Court of Justice (BGH) confirms certain criteria, which we explain in more detail below.
What are the criteria for settlement on a new car basis in the event of a no-fault accident?
In addition to the requirement of unreasonableness, the Federal Court of Justice confirmed certain criteria in its judgement of 29 September 2020 with the file number VI ZR 271/19 as to when a new vehicle must be reimbursed after an accident with a new car:
- Mileage at the time of the accident is less than 1,000 km
- a vehicle registration has existed for a maximum of one month
- considerable material damage has been caused
- Injured party actually buys a comparable new car with the money from the compensation payment after the accident
The criterion of significant damage in particular repeatedly causes legal problems in accident settlements, as there is no clear definition for this. However, the aspect of reasonableness is decisive. If, for example, welding work has been carried out on load-bearing vehicle parts in order to repair the damage, the vehicle owner can no longer be expected to continue using the repaired vehicle. However, courts disagree as to when a vehicle is to be categorised as significantly damaged according to traffic law.
ATTENTION:
The injured party only has this claim if he actually buys a new car. A fictitious settlement on the basis of a new car is not possible.
Who is responsible for proving that the new car has suffered significant damage to its bodywork?
The burden of proof lies with the injured party – you must therefore prove that there has been significant damage to the vehicle, rendering its continued use after repair unreasonable. The key piece of evidence is a report by an independent expert: this documents the nature and extent of the damage and, at the same time, quantifies the loss of value to which you are entitled, irrespective of whether you are offered a replacement new car.
However, even an expert report is no guarantee. Whilst insurers often accept the amount of the damage, they dispute that it is „significant“ within the meaning of case law – and refuse to settle on a new-car basis. In such cases, it is not the expert report that decides, but how effectively your claim is pursued. This is precisely what a specialist legal service provider such as fairforce.one is here for: we arrange for the expert report to be drawn up, calculate your full claims and assert them against the opposing insurer – right from the start, so that your new car does not quietly become a standard accident-damaged vehicle.
If all the conditions mentioned are met, insurers refer to this as a claim for compensation based on the value of a new car.
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.
When is a new car not available following an accident?
The criteria for compensation in the amount of the replacement value after a no-fault accident are very strict. As a result, many drivers with a new car often lose out after an accident. For example, if there is no significant damage or the car was registered more than a month ago. In this case, accident victims can assert the regular claims following an accident. For example, that the insurance company of the person responsible for the accident pays the usual costs for repairs, a Rental carwhich Compensation for loss of use and others Benefits to which you are entitled paid. Which additional depreciation is compensated depends on the individual case.
Whilst this is frustrating for many car owners, it is in line with the principle of reasonableness – both for the insurance company and its claims settlement process, and for the driver, who can reasonably be expected to continue driving a car after minor repairs.
New car vs. compensation for new value
The entitlement to a new car after an accident should not be confused with the new value compensation or new price compensation. As a rule, this only applies to comprehensive insurance policies and applies to self-inflicted accidents. On the other hand, there is no general compensation for new value in third-party liability insurance.
Comprehensive insurance in particular can also be a kind of new car insurance. Namely, if the insurance pays compensation for the value of a new car after an accident and thus enables the purchase of a new car. This is often the case if the vehicle is a total loss after an accident or was stolen shortly after purchase. However the insurances sets out the exact conditions for compensation for a price increase. There are no statutory requirements in this regard.
Accident victims in your situation simply get the best support from fairforce.one.
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Accident with red licence plate
The so-called „red number plates“ are sometimes seen on the roads and are subject to strict rules. The colloquial term ‘transfer number plates’ is misleading. Whilst these plates are used to transport purchased vehicles to the customer, they may only be used by certain dealers. Private individuals, on the other hand, are not permitted to use them to drive their car from A to B – not even from the dealer to their home or from there to the vehicle registration office. For this reason, it is not insignificant if a driver with a red number plate is involved in an accident. If the red number plate is being used correctly by the dealer, the dealer is also legally insured. So, if a dealer causes an accident with a car bearing a red number plate and damages your car, the damage will be covered by the relevant insurance company in the usual way.
If a dealer is involved in an accident through no fault of their own whilst driving a car with a red number plate – for example, whilst delivering it to a customer or driving to the vehicle registration office – the insurance of the party responsible for the accident covers all costs. However, as these are often new cars, an accident is particularly frustrating. The dealer suffers a significant loss in value here, as the damaged car is suddenly no longer a new car. It can therefore neither be sold as a new car nor handed over as such to the customer, who may already have paid for it. This reduction in value is usually also compensated by the other party’s insurance, enabling a new car to be procured. Any other claims, such as those relating to the waiting time now incurred by the customers of the dealer involved in the accident, are calculated separately.
The right steps for fair claims settlement
Do you want to know what claims you are entitled to after your new car accident? Our network of specialists will carry out the complete examination and settlement of the claim for you.
The secure procedure at a glance:
- You can report the accident to us safely and free of charge by phone on 0800 30 111 60 or even faster directly online.
- Our certified team will review your case immediately and discuss the appropriate next steps with you.
- Claims settlement is initiated and you are kept informed of any progress via our innovative customer information system KIS.
The licensed specialists from the fairforce.one network will handle all the necessary correspondence and provide you with personalised support right through to the payment of your compensation claims – drawing on their expertise, adopting a solution-focused approach and at no financial risk to you.
FAQ about the new car after an accident
When are you entitled to a new car following an accident?
Anyone who gets into an accident with a new car through no fault of their own can, under certain conditions, claim a new car from the other party's insurance company. This is usually possible if the car was registered less than a month ago and has been driven less than 1,000 kilometres. In addition, there must be significant damage that makes it unreasonable to continue using the car as a new one. If these criteria are met, accident victims may be able to buy a new car at the insurance company's expense.
How long does the replacement value compensation apply for?
Compensation for replacement value is often part of fully comprehensive insurance and applies in the event of accidents caused by the driver. However, there are no fixed criteria as to when the insurance companies will pay compensation. Details can be found in the policy conditions.
What is compensation for the original purchase price under motor insurance?
The new price compensation is usually paid by the comprehensive insurance and is often part of comprehensive insurance contracts. In the case of new cars that have only been registered for a short time and have only driven a few kilometres, the insurance company may pay for a new car instead of having repairs carried out.
When is an accident-damaged car considered a new car?
In the event of a no-fault accident, a car is generally considered a new car if it was registered less than a month ago and the car has been driven less than 1,000 kilometres. However, whether the insurance company of the person responsible for the accident pays for a new car also depends on the damage and the reasonableness of the damage.
Can the insurance company refuse to pay for a new car?
Whether you are entitled to a new car after an accident depends on various criteria. However, even if your vehicle fulfils these criteria, the insurance company may refuse to settle for a new car. For example, if it does not consider the damage to be significant. Often only the courts can decide here. So that you don't have to argue with the insurance company, we help you assert your rights right from the start. Get in touch with us.
