Total loss

A total loss is damage to property, which technically can not be resolved or in which a repair is not economically worthwhile. Such damage often occur on vehicles which have been involved in serious accidents.

• Electrical breakdown of a vehicle is present when the damage are so substantial that a restoration of the previous state is not possible or would involve a disproportionate effort completely.
• Economic total damage to a vehicle is present when the corresponding repair costs are higher than the replacement value of the vehicle. But even if the repair costs exceed the difference between replacement value and residual value, it is called economic total loss.

In the event of total loss of the injured party may demand usually not as damages the cost of repair, but only the cost of the replacement of an equivalent replacement item minus the salvage value of the damaged property. An exception is made in motor vehicles: Here, the injured party may, under certain conditions, up to 130% of the replacement cost ( without considering the residual value ) demand as compensation, if for that amount the vehicle can be repaired completely and professionally.

According to the established case law of the Federal Court provide the replacement cost in most cases ( at least for car damages ) a form of restitution pursuant to § 249 para 2 BGB and no compensation in accordance with § 251 paragraph 2 BGB. This has for total losses that occur after August 1, 2002 ( the entry into force of the Second Act Amending damages legal requirements ), means that the replacement value is reduced by the VAT included in it if the injured party has not actually made ​​a replacement while Sales tax is incurred. The Federal Court has expressly approved this cut in two judgments. An appeal against the judgment of 18 May 2004 constitutional complaint, the Federal Constitutional Court - not accepted for decision - without giving any reason.