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German courts clarify insurance liability for rental car costs
Recent rulings from German district courts have clarified the responsibilities of insurance companies regarding rental car costs following traffic accidents.
The Bad Kissingen District Court ruled that insurers cannot unilaterally reduce rental car reimbursement by simply applying cheaper estimation models, such as the Fraunhofer rental price index, if those models do not accurately reflect local market conditions. The court emphasized that the specific circumstances of the case must be considered when determining appropriate costs.
In a separate decision, the Coburg District Court ruled that an insurer may be held liable for extended rental car expenses, potentially spanning several months. This occurred in a case where a repair was delayed because the victim could not afford to prepay the workshop due to financial hardship, and the insurer failed to provide a necessary advance payment in a timely manner.
Entities
ADAC · Amtsgericht Bad Kissingen · Amtsgericht Coburg · Deutscher Anwaltverein
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The Bad Kissingen District Court ruled that insurers cannot automatically reduce rental car costs based on cheaper estimation models without proving they do not reflect local market conditions. www.n-tv.de
- [○ 1 SOURCE] Courts must determine if estimation tools like the Schwacke List or Fraunhofer rental price index accurately represent local market rates in specific cases. www.n-tv.de
- [○ 1 SOURCE] The Coburg District Court ruled that an insurer may be liable for extended rental car costs, even up to five months, if repair delays are caused by the insurer's failure to provide an advance payment. www.kurierverlag.de
- [○ 1 SOURCE] In a case involving a vehicle with a replacement value of 9,000 euros, repair costs of 9,900 euros were covered under the 130-percent rule. www.kurierverlag.de