Calculating Auto Damage: How Are the Costs Calculated?

I've caused harm to someone else—how do I resolve this?

You are automatically insured for damage you cause to others. In the Netherlands, it is a legal requirement to have liability insurance. If you are responsible for damage to another car, the insurer will pay compensation to the person who suffered the damage. However, with liability insurance alone, you are not covered for damage to your own car. For that, you need comprehensive insurance. In that case, you’ll have to pay for the repair costs to your car yourself. You’ll also lose your no-claims years if you caused the accident yourself.

Damage caused by someone else—what now?

Did another driver hit your car? In that case, you’re obviously not responsible for the damage. The damage to your car will therefore be covered by the other party’s auto insurance company. You’ll keep your accumulated no-claims years, since the accident wasn’t your fault. Do you have comprehensive auto insurance? In that case, your insurer will seek reimbursement from the other party. If you have a less comprehensive policy, you’ll have to recover the damages yourself.

How do I find out the current market value of my car?

The car’s current market value plays an important role in calculating the amount of the claim. This is because a new car loses value as soon as it’s registered in your name. From that moment on, the car is no longer new. The amount the car would fetch if sold is its current market value. This is the maximum amount your auto insurance will pay out in the event of a claim. Even if the amount of damage exceeds the current market value, the insurer will base its payment on the current market value. In the event of a claim, an insurer may also base the payout on the replacement cost (for new cars) or the purchase price (for used cars).

The Amount of Damages for Minor Damages

Is the damage to your car minor? If so, your insurer will likely ask you to visit a repair shop to have the cost of the damage assessed. The repair shop will then calculate the expected costs and the number of hours it will take to repair the damage. The estimate will include:

• An estimate of the expected time it will take to repair the damage
• The estimated cost of the parts that need to be replaced
• An estimate of the expected time required to remove dents from parts and/or paint them.

If the insurer thinks the estimate is too high, they may send an expert to perform a second estimate.

How does the insurance company determine what constitutes a major claim?

Has your car sustained significant damage? If so, your auto insurance company will send an adjuster to assess the damage. The adjuster can calculate the correct amount of compensation. To do this, they estimate the repair costs, the car’s depreciation (residual value), and the cause of the damage. Based on these factors, they’ll draw up a cost estimate. An insurance adjuster is almost always hired by the insurer. This is also why the insurer covers the adjuster’s fees.

What is the average amount of damage in a car accident?

The amount of the claim depends entirely on the severity of the accident. Minor damage naturally costs less to repair than major damage. However, even minor damage can still be quite costly. It often takes much more effort to repair damage than you might initially think, for example, if parts need to be unscrewed. For instance, minor paint damage to the bumper can easily cost around €400. In addition, costs vary by mechanic and repair shop. Each garage charges a different hourly rate, which means costs at one garage may be higher than at another. The amount of time it takes to repair the damage also varies by mechanic. The total cost of the repair therefore depends largely on the amount of time required and the hourly rate.

How long will it take before I receive the insurance payout?

It's hard to estimate how long it will take for your claim to be settled. How quickly you receive your settlement depends on a number of factors:

• How quickly the other party submits the claim forms
• How quickly your insurance company or agent processes the claim
• Whether any additional investigation is needed, such as interviewing witnesses

Insurance companies generally try to pay out the claim as quickly as possible. Have you filed a claim but haven't heard anything yet? If so, you can always contact your insurance company or agent to find out the status of your claim.

Car Repair Costs

Car damage can be quite costly. The exact cost of car damage depends on which part of the car is damaged. For example, repairing a small amount of paint damage on the cover of the side mirror is cheaper than fixing a large dent in the front bumper. However, even repairing minor damage can sometimes turn out to be expensive. That’s because there’s often more involved in repairing (even minor) damage than you might think. If you have paint damage on your bumper, it often needs to be removed and repainted. Furthermore, there may also be hidden damage, for example behind the bumper. If car parts need to be replaced, a minor damage claim can suddenly become quite costly. Depending on your auto insurance coverage, the insurer will reimburse (part of) the damage. Finally, the costs of auto repairs vary by repair shop and/or mechanic.

Calculate Auto Damage

When calculating the cost of car damage, several factors are taken into account. How extensive is the damage? Do any parts need to be replaced, and how much will that cost? Is repainting necessary? Does the body need to be straightened? The repair shop then checks the Audatex system to determine approximately how much time this will take. Based on this information, the repair shop provides you with a cost estimate. There are also a number of websites where you can calculate car damage online. This gives you a preliminary idea of the costs. However, these estimates aren’t as accurate as a professional calculation by a garage or auto body shop. If the insurer considers the garage’s estimate too high, they may send an expert to perform a second calculation. In doing so, the expert also takes the garage’s hourly rate into account.