German Federal Court rules against driver seeking vehicle upgrade costs

The German Federal Court of Justice (BGH) has ruled that motor vehicle liability insurance is not required to cover the cost of a vehicle upgrade following an accident.

The case involved a Tesla driver who, after his Model Y Long Range was destroyed in a non-fault accident, purchased a newer Model Y Performance. The driver sought to have the opposing party's liability insurance cover the 8,650 Euro difference between the original vehicle and the upgraded model.

The driver argued that the upgraded model was the only one immediately available and that his quick purchase saved the insurer costs related to rental cars and loss of use. However, the BGH upheld previous rulings from the Landgericht Hildesheim and the Oberlandesgericht Celle, confirming that the insurer is only obligated to cover the value of the original vehicle.