German Federal Court rules on partial coverage for repair bills

The German Federal Court of Justice (BGH) has ruled that comprehensive insurance (Kaskoversicherung) only covers repair costs that are actually necessary.

According to the decision, insurers are not required to pay for inflated portions of a workshop invoice, such as unnecessary labor, excessive material prices, or uneconomical repair methods. Unlike liability law, where the perpetrator often bears the risk of workshop errors, the BGH determined that in comprehensive insurance, the policyholder carries the workshop risk.

Exceptions apply only if the insurer specifically designates a particular workshop or provides concrete instructions. Experts advise policyholders to exercise caution when selecting workshops, as they are fundamentally responsible for any overcharging.