130% Rule – When Is a Vehicle Repair (Not) Possible?
From the perspective of an independent Kfz appraiser – Gutachter M. Eng. Asim Mrkovic
In my daily practice as an independent Kfz appraiser in Germany, I often receive inquiries and cases from clients asking what to do when the repair costs after an accident exceed the vehicle’s market value. This is where the 130% rule plays a major role in deciding what happens next.
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130% Rule – When Is a Vehicle Repair (Not) Possible?
What does the 130% rule mean?
The 130% rule allows the vehicle owner to repair their vehicle even if the repair costs exceed the pre-accident market value – but only up to 130%. If the repair costs go beyond that, it is considered an economic total loss.
In such cases, the client has several options – and that’s where I step in to clearly and practically explain what those options are.
What if the damage exceeds 130%?
If the repair costs exceed the allowed 130%:
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The insurance will no longer cover the repair
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The client may:
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Sell the vehicle for its residual value and receive the difference in compensation
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Keep the vehicle and finance the repair independently, while the insurance pays out a sum – often more than 60% of the vehicle’s value
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Real cases from my work
Here are two real-life examples from my experience as an appraiser that show how this plays out in practice:
Case 1 – The vehicle was worth €11,000After the accident, the client chose to sell the vehicle, and the insurance paid the full pre-accident market value. Since the repair exceeded 130%, we decided – together – to let go of the vehicle for multiple valid reasons.
Case 2 – The vehicle was appraised at €15,000The client decided to keep the vehicle but did not want to invest more. The insurance paid €13,000, and the client paid the rest of the repair costs out-of-pocket – because he had the option of repairing it more affordably. The whole process was quick and smooth.
In both situations, the clients first spoke to me, considered all options, and made the best decision for themselves.
Why contact me?
As an independent Kfz appraiser in Germany, I have extensive experience with such cases. My goal is not just to write a report, but to help clients understand:
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What’s economically sensible
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What real options exist
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How to get the most from the insurance company
I work quickly, reliably, and transparently. In these situations, time is critical – but accurate information is even more important.
Have vehicle damage? Not sure what to do?
Contact me – Asim, independent Kfz appraiser in Germany. You will receive clear advice, practical information, and full support from day one.
Experience is on your side.
Experience is on your side.
Note: In line with our data protection policy, no client names or personal data were used in this text. All details are based on a real experience, adapted to ensure anonymity and compliance with legal standards.
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