Who’s Liable in a Car Accident? How Insurance Covers Damages & Rising Risks for Drivers

Road operators in Germany are liable for vehicle damage caused by potholes if they fail their safety maintenance duties, according to legal standards upheld by the Federal Court of Justice in Karlsruhe. Vehicle owners can recover repair costs from the state or municipality, provided they can prove the road authority was negligent in maintaining the infrastructure.

The liability rests on the principle of “Verkehrssicherungspflicht,” or the duty to maintain public safety. Under this legal framework, the entity responsible for the road—whether a city, a district, or the federal government—must ensure the path is safe for intended use. When a pothole reaches a depth or size that poses a danger to tires, rims, or suspension, the road operator is required to repair it or provide adequate warnings, such as signage or temporary barriers.

How do drivers recover repair costs?

Securing compensation requires immediate and concrete documentation of the incident. The ADAC advises drivers to stop safely and take detailed photographs of the damage to the vehicle and the pothole itself. These photos should include a reference object, such as a coin or a ruler, to prove the depth of the hole.

The ADAC recommends a specific sequence of actions for those seeking reimbursement:

• Document the exact location of the pothole using GPS coordinates or street markers.
• Collect contact information from witnesses who saw the incident.
• File a formal report with the police to create an official record of the event.
• Submit a written claim to the relevant road authority, including the evidence and a professional repair estimate.

Failure to document the scene immediately often leads to denied claims, as road authorities may repair the hole shortly after a report, erasing the evidence of negligence.

What is the role of vehicle insurance?

Whether a driver’s own insurance covers the damage depends on the type of policy held. Standard third-party liability insurance does not cover damage to the driver’s own vehicle. Only “Kaskoversicherung” (comprehensive or partial comprehensive insurance) typically covers pothole damage.

Many drivers choose to claim through their Kasko insurance to avoid the lengthy process of suing a municipality. However, this often results in the driver paying a deductible. In these cases, the insurance company may pursue a “regress” claim, meaning the insurer attempts to recover the payout from the road operator.

If the road operator is found liable, the insurer typically recovers the funds and may refund the driver’s deductible. If the insurer cannot prove the operator’s negligence, the driver bears the cost of the deductible.

Why does the Karlsruhe court’s ruling matter?

The Federal Court of Justice in Karlsruhe sets the legal threshold for what constitutes a “dangerous” road defect. The court distinguishes between general wear and tear, which drivers are expected to anticipate, and actual defects that violate safety duties. A pothole must be significantly deep or positioned in a way that it cannot be avoided through normal cautious driving to trigger liability.

A central conflict in these cases is the determination of “Mitverschulden,” or contributory negligence. Road authorities frequently argue that the driver was speeding or failed to pay attention to the road. If the court finds the driver was traveling above the speed limit, the payout is often reduced proportionally.

Legal experts, including Jörg Asmussen, note that the burden of proof often shifts during these proceedings. While the driver must prove the hole existed and caused the damage, the road operator must prove they had a reasonable inspection cycle in place to detect such defects.

This creates a tension between two different standards: the driver’s duty to maintain a safe speed and the state’s duty to maintain the asphalt. When these conflict, the Karlsruhe precedents generally favor the road operator unless the defect was “extraordinary” or had been reported previously without action being taken.

On June 21, 2026, the discussion regarding these liabilities remains critical as infrastructure degradation increases the frequency of these legal disputes across Germany.