Glossary
Loss-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.
What does loss-of-use compensation mean?
Loss-of-use compensation (Nutzungsausfallentschädigung) is a monetary payment that the injured party can claim after a no-fault accident if they cannot use their vehicle during the repair or replacement period and do not use a rental car. It compensates for the loss of the ability to use one's own vehicle as an independent pecuniary loss.
The injured party therefore generally has a choice: either a rental car at the expense of the party at fault, or a flat-rate compensation for each day of downtime.
Requirements under established case law
Under established German case law, essentially three requirements must be met for a claim to loss-of-use compensation to exist:
- Intention to use: The injured party would actually have wanted to use the vehicle during the downtime period.
- Ability to use: They would also have been able to use it – for example, not prevented from doing so by an accident-related injury or a vacation.
- Perceptible loss: No equivalent second vehicle was freely available.
The compensation is usually granted as a daily rate, the amount of which is based on recognized reference tables that classify vehicles into loss-of-use classes. The age and condition of the vehicle may lead to a downgrade into a lower class.
For what period is loss-of-use compensation payable?
The compensable period is generally based on the information in the expert report:
- In the case of repair: the expected repair duration stated in the expert report, plus, where applicable, reasonable time for preparing the report, reviewing it and organizing the workshop.
- In the case of a total loss: the replacement period (Wiederbeschaffungsdauer) stated in the report, i.e. the time typically needed to procure an equivalent replacement vehicle.
- Delays: Delays not attributable to the injured party – such as supply bottlenecks for spare parts – may extend the period in individual cases, but should be documented.
The injured party is subject to a duty to mitigate damages (Schadensminderungspflicht): the repair or the replacement purchase should be arranged without culpable delay.
Practical example
After a no-fault accident, the injured party takes their vehicle to the workshop. The expert report states a repair duration of several working days. Since the injured party has no second vehicle available for everyday use, but deliberately forgoes a rental car and organizes their journeys differently, they claim loss-of-use compensation for the documented downtime. The basis is the repair duration recorded in the expert report and the classification of the vehicle into the corresponding loss-of-use class.
Significance for injured parties and assessors
For injured parties, loss-of-use compensation is an economically attractive alternative to a rental car, especially if the vehicle is only used occasionally. It is important to document the downtime period and the repair or replacement duration.
For vehicle assessors, the details of the expected repair duration, the replacement period and the loss-of-use class are standard components of a complete damage assessment report (Schadengutachten). If these details are missing, enforcing the claim becomes considerably more difficult for the injured party.
Frequently asked questions
Can I claim a rental car and loss-of-use compensation at the same time?
No. For the same period, you can claim either reimbursement of reasonable rental car costs or loss-of-use compensation. Splitting the period – first a rental car, then loss-of-use compensation – is possible in individual cases.
How is the amount of the daily rate determined?
The amount is generally based on recognized reference tables that classify vehicles into loss-of-use classes according to type and equipment. For older vehicles, a downgrade by one or more classes is customary.
Do I also receive loss-of-use compensation in the event of a total loss?
Yes, generally for the replacement period stated in the expert report, i.e. the time usually required to procure an equivalent replacement vehicle.
What if I own a second vehicle?
If an equivalent second vehicle is available to you without restriction, there is generally no perceptible loss of use – the claim then usually lapses. If the second vehicle is needed by other family members, the claim may remain valid.
Does the claim also apply to commercially used vehicles?
For commercially used vehicles, the loss is generally calculated differently, for example on the basis of the specific lost profit or the standby costs. The flat-rate loss-of-use compensation is primarily tailored to privately used vehicles.