GermanyWhat damages can I claim after a traffic accident?
You can claim compensation for material losses (e.g., repair costs, rental car, lost wages) and non-material damages (e.g., pain and suffering) if bodily injury occurred — subject to statutory rules under BGB §§ 249 and 253.
What the Law Says
German law distinguishes between material (financial) and non-material (personal) damages after a traffic accident. The core principles are set out in the German Civil Code (BGB).
Under BGB § 249, the aim of compensation is to restore the injured party’s situation to what it would have been had the accident never occurred. This is called 'natural restitution' — meaning the at-fault party must either repair the damaged vehicle or pay the necessary amount to do so.
If repairing the vehicle isn’t possible or reasonable, you may claim the required cash amount instead. Importantly, value-added tax (VAT) is only included in that amount if you actually incurred and paid it — for example, when hiring a certified workshop that charges VAT.
BGB § 253 governs non-material damages — often called 'pain and suffering' (Schmerzensgeld). Unlike material losses, this type of compensation is only available in specific cases defined by law — notably when the accident caused bodily injury, health impairment, loss of freedom, or violation of sexual self-determination.
Statutory Text(1) Wer zum Schadensersatz verpflichtet ist, hat den Zustand herzustellen, der bestehen würde, wenn der zum Ersatz verpflichtende Umstand nicht eingetreten wäre.
— BGB § 249 — Nature and scope of damages
Statutory Text(2) Ist wegen Verletzung einer Person oder wegen Beschädigung einer Sache Schadensersatz zu leisten, so kann der Gläubiger statt der Herstellung den dazu erforderlichen Geldbetrag verlangen. Bei der Beschädigung einer Sache schließt der nach Satz 1 erforderliche Geldbetrag die Umsatzsteuer nur mit ein, wenn und soweit sie tatsächlich angefallen ist.
— BGB § 249 — Nature and scope of damages
Statutory Text(1) Wegen eines Schadens, der nicht Vermögensschaden ist, kann Entschädigung in Geld nur in den durch das Gesetz bestimmten Fällen gefordert werden.
— BGB § 253 — Non-material damages (pain and suffering)
Statutory Text(2) Ist wegen einer Verletzung des Körpers, der Gesundheit, der Freiheit oder der sexuellen Selbstbestimmung Schadensersatz zu leisten, kann auch wegen des Schadens, der nicht Vermögensschaden ist, eine billige Entschädigung in Geld gefordert werden.
— BGB § 253 — Non-material damages (pain and suffering)
What Courts Have Said
The Bundesgerichtshof (BGH) has clarified how courts assess damage claims in traffic accidents — especially regarding VAT treatment and when hypothetical ('fictional') calculations are permitted.
The court confirmed that VAT may only be included in repair cost claims if the claimant actually pays it — e.g., to a VAT-registered workshop. It also upheld the use of 'fictional damage calculation' (e.g., claiming repair costs even if the car wasn’t repaired), provided the claimant credibly shows they would have repaired it had the accident not occurred.
What to Do
Gather evidence: photos of damage, police report, witness statements, medical records (if injured).
Notify your insurer and the at-fault driver’s insurer promptly — no strict deadline, but delays may complicate claims.
Get a professional repair estimate (preferably from a VAT-registered workshop if claiming VAT).
If injured, consult a doctor immediately and keep all medical documentation — essential for pain and suffering claims.
Consider consulting a lawyer before accepting any settlement offer — especially for serious injuries or disputed liability.
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Related Questions
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.