Anyone who advances damages will be left with the costs

Liability verdict

Anyone who pays the damage themselves will be left with the costs

He meant well: After an accident, a man paid for the damage out of his own pocket. A mistake, as a recent judgment from Munich shows.

Private liability is one of the most important insurance policies. It kicks in when you cause damage. However, it is not a good idea to advance a claim out of your own pocket in order to then get the money back from the insurer. This is shown by a newly published, legally binding judgment from the Munich District Court (file number 172 C 8761/25).

In the case in question, a man from Munich slipped in front of his brother’s house while visiting his brother. As he staggered, the man managed to hold on to his brother’s new Mercedes off-road vehicle. He caused significant scratches on the vehicle with his jacket. The damage amounted to around 3,500 euros. The man gave the amount to his brother in cash and then reported the damage to his liability insurance.

But she doubted whether the damage was actually caused by the fall described. She refused to pay the amount.

The district court ruled rightly and rejected the man’s lawsuit. According to the terms of the contract, the insurance cover only included:

The court also referred to the Insurance Contract Act. This expressly states that the insurer does not have to reimburse the policyholder for any sum paid by the policyholder to the injured party. In principle, the liability insurer is not obliged or even entitled to make payments to the policyholder.

For insured people, this means: Leave the damage payments to your liability insurance. Anyone who pays in advance cannot expect the insurer to reimburse them.