Glossary
Key terms around vehicle appraisals
From replacement value to loss of use: here we explain the most important terms from appraisals and claims settlement — clear, accurate and free of legalese.
130-Percent Rule
The 130-percent rule (130-Prozent-Regel) allows the injured party to have their vehicle repaired even when the repair costs exceed the replacement value (Wiederbeschaffungswert) by up to 30% – as an expression of their integrity interest (Integritätsinteresse) in the familiar vehicle.
Read the termCondition Report (Zustandsbericht)
A condition report (Zustandsbericht) neutrally and comprehensively documents a vehicle's current technical and visual condition – typically at lease return, when buying a vehicle or before remarketing.
Read the termDamage Assessment Report (Schadengutachten)
A damage assessment report (Schadengutachten) documents the extent, cause and monetary value of vehicle damage through an independent expert and is the central evidentiary basis for settling the claim with the insurer.
Read the termDiminished value (merkantiler Minderwert)
The diminished value (merkantiler Minderwert) is the loss in value a vehicle suffers solely because of its status as an accident vehicle, even after proper repair. As an independent item of damage, it is generally recoverable.
Read the termEconomic total loss (wirtschaftlicher Totalschaden)
An economic total loss (wirtschaftlicher Totalschaden) generally exists when the repair costs exceed the vehicle's replacement value (Wiederbeschaffungswert) – meaning a repair is no longer economically reasonable.
Read the termLabor Unit (Arbeitswert, AW)
The labor unit (Arbeitswert, AW) is the calculated time unit used by German repair shops and assessors to measure the labor involved in a vehicle repair. Together with the hourly labor rate (Stundenverrechnungssatz), it forms the basis of labor cost calculation.
Read the termLoss-of-Use Compensation (Nutzungsausfallentschädigung)
Loss-of-use compensation (Nutzungsausfallentschädigung) is a monetary payment for an injured party who is temporarily unable to use their vehicle due to an accident and does not use a rental car.
Read the termNotional Settlement (Fiktive Abrechnung)
With a notional settlement (fiktive Abrechnung), the injured party settles the accident damage on the basis of the repair costs calculated in the expert report, without actually having the vehicle (fully) repaired.
Read the termReplacement Value (Wiederbeschaffungswert)
The replacement value (Wiederbeschaffungswert) is the price an injured party would have to pay to purchase an equivalent vehicle on the regional used-car market. It is the central reference figure when settling accident claims.
Read the termResidual Value
The residual value (Restwert) is the value a damaged vehicle still has in its unrepaired condition – i.e. the proceeds that could be obtained by selling the accident vehicle. Alongside the replacement value (Wiederbeschaffungswert), it is the second key figure in total loss settlements.
Read the termState of Health (SoH)
The State of Health (SoH) describes the health of an EV battery: the ratio of the currently usable capacity to the original nominal capacity, expressed as a percentage.
Read the termValuation Report (Wertgutachten)
A valuation report (Wertgutachten) determines a vehicle's current value through an expert – for example for purchases and sales, insurance, classic-car classification, inheritance cases or court proceedings.
Read the term