Benefit
Car insurance: repair car or receive payout?
After making a claim, you have the choice of having your car repaired or receiving a pay out from your insurer. Find out more in this article.
13.06.2024
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1. Can I have my insurance policy paid out in Switzerland?
After making a claim on your car insurance, you have two options:
You can have the damage repaired at the insurance company’s expense and minus any deductible. The type of damage your vehicle sustained must be covered by your policy, however.
Alternatively, you can receive a payout from the insurance company. For liability insurance, the insurer of the person causing the accident will transfer the money to you.
Note: your insurer won’t pay out for all types of damage. This includes glass damage, for example, which you have to get repaired.
If the amount of damage is higher than the vehicle’s current value, your vehicle is considered a write-off. In this case, you will usually receive a maximum amount of its value.
Switching car insurance after making a claim
Has your car suffered damage that is covered by insurance? Once the claim has been settled, you have 14 days to terminate your contract if you wish to. This makes sense particularly if another provider is offering lower premiums. It’s therefore worth comparing different car insurance policies.
2. Can I decide for myself where to have the car repaired?
Depending on your policy, your insurer may require you to get the damage repaired at a specific partner garage. Otherwise, you may have to pay a higher deductible.
Have you taken out “free choice of garage” supplemental insurance? If so, you can have your vehicle repaired by any professional garage. If receiving a payout, this means you should be sure to get several quotes. Don’t place the repair order until the insurance company has provided a commitment to provide cover.
According to the law, the operational safety of a car must be guaranteed at all times. Are you unsure whether your car still complies with the regulations or whether this applies in your case? Then it’s best to ask a specialist.
3. Can I have the insurance company payout and sell the car?
If you want to sell your car after repair, you must declare it as a vehicle that’s been involved in an accident. This reduces its value and thus its selling price. Depending on the accident, your liability or fully comprehensive insurance can pay compensation for the loss in value. Contact your insurer for clarification. As a rule, you will receive between 3% and 10% of the current vehicle value.
4. Receiving a payout or getting my car repaired: what’s the better option?
Are you thinking of buying a new car? How important is owning a brand new car to you? Do you want to sell it later? These questions will help you decide.
| Advantages of receiving a payout | Advantages of getting car repaired |
|---|---|
| You can choose what to do with the money paid out | Damage is guaranteed to be repaired |
| You can freely choose the garage | Guarantee on repair at insurance partner garages |
| Repair may be cheaper than with the insurer’s partner garage | Higher resale value |
This article was first published on 19.08.2021
