# German court ruling on casco insurance workshop risk

> Live situation record from CLSTR: https://clstr.news/situations/german-court-ruling-on-casco-insurance-workshop-risk
> Updated: 2026-09-18T15:06:41.000Z. Sources: 31. Developments: 2.

The German Federal Court of Justice (BGH) has issued a ruling clarifying that the ‘workshop risk’ (Werkstattrisiko) in motor vehicle casco insurance remains the responsibility of the policyholder. The court established that insurers are only obligated to cover costs that are strictly and objectively necessary for a repair according to the insurance contract.

This decision distinguishes casco insurance from liability insurance, where the responsible party or their insurer typically bears the cost of excessive or incorrect repair invoices. Under the BGH ruling, insurers are not liable for inflated material costs, excessive labor times, or inefficient workshop practices, provided the insurer did not mandate a specific repair facility.

Following the ruling, the Automobilclub von Deutschland (AvD) has advised drivers to mitigate financial risks by obtaining cost estimates and securing insurance approval before authorizing repair work. This precaution is recommended for all casco claims, including those involving storm damage, vandalism, or animal collisions.

## Claims

- The Federal Court of Justice (BGH) ruled that the workshop risk in motor vehicle casco insurance generally lies with the policyholder (Az. IV ZR 235/25). (corroborated by 4 sources)
- Casco insurers are not required to cover repair costs that are deemed objectively unnecessary, unperformed, or excessive. (corroborated by 4 sources)
- The Automobilclub von Deutschland (AvD) advises drivers to obtain a cost estimate and submit it to their insurer for approval before authorizing repairs. (corroborated by 4 sources)
- In cases involving third-party liability, the workshop risk typically rests with the perpetrator or their liability insurance rather than the policyholder's casco insurance. (corroborated by 2 sources)

## Timeline

### 2026-09-18: German Court rules policyholders bear workshop risk in casco insurance

The German Federal Court of Justice ruled that policyholders bear the 'workshop risk' in casco insurance, meaning they may be liable for excessive or unnecessary repair costs.

6 sources. https://clstr.news/cluster/german-court-rules-policyholders-bear-workshop-risk-in-casco-insurance

### 2026-09-09: BGH rules casco policyholders bear workshop repair risks

The German Federal Court of Justice ruled that casco insurance policyholders, not insurers, bear the risk for excessive or unnecessary workshop repair costs.

27 sources. https://clstr.news/cluster/federal-court-of-justice-reviews-casco-insurer-liability-for-workshop-costs

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Cite as: German court ruling on casco insurance workshop risk. CLSTR, https://clstr.news/situations/german-court-ruling-on-casco-insurance-workshop-risk