Germany's BGH rules insurers not liable for unnecessary repair costs

The German Federal Court of Justice (BGH) has ruled that comprehensive car insurance (Vollkasko) providers are only required to cover repair costs that are contractually agreed upon and economically necessary.

In a specific case involving a vehicle damaged during a parking maneuver, a workshop billed 4,500 euros for repairs. The insurer refused to pay a portion of the bill, arguing that certain services were not objectively required to fix the accident-related damage. An expert report later confirmed that some billed tasks had no connection to the accident. The BGH upheld the insurer's decision, establishing that vehicle owners bear the risk of unnecessary or inflated workshop charges, as insurers are entitled to strike out non-essential repair items.