Notional vs. actual damage settlement — which pays off?
Have it repaired, or have the money paid out based on the report? An overview of the differences between notional and actual settlement.
Actual settlement
With actual settlement, you have your vehicle actually repaired and claim the proven costs from the insurer — based on the workshop invoice or our damage report.
Notional settlement
With notional settlement, you have the repair costs calculated in the report paid out without actually having the vehicle repaired. You decide yourself whether and how to restore the vehicle.
Since a change in the law, notional settlement generally only reimburses the net amount without VAT, and if the vehicle is sold within six months, the residual value may be offset.
Which is the better choice?
This depends on your individual situation: those who want to have the vehicle repaired anyway usually benefit from actual settlement including VAT. Those who want to stay flexible choose notional settlement. As part of the damage report, we advise you on which option makes sense for your case.
Questions about your specific case?
This article doesn't replace an individual assessment — talk to us without obligation.