Quick overview
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Compensation after a car accident is usually covered by the at-fault party’s compulsory liability insurance.
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The claim may include damage to the vehicle, loss of earnings and personal injury.
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The police must be called in the event of injury, damage over CZK 200,000 or damage to third party property.
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If the insurance company refuses or reduces the claim, you can defend yourself by making a claim or taking legal action.
Need help with compensation after a car accident? We can check the insurance company’s procedure and help you get full compensation. Send us the information and we will give you a solution proposal within 24 hours.
General principles of compensation
We have covered the general principles of compensation in detail in our earlier article. Let’s summarise at least the four most important principles:
The prerequisite for damages is
- the wrongful act,
- the occurrence of the injury,
- causation,
- fault (intentional or negligent).
Compensation for damages covers the actual damage and what the injured party has lost, i.e. lost profits. The damage shall be compensated by restoring it to its previous state and, if this is not possible, the damage shall be paid in money.
Compulsory liability
In the vast majority of road accidents, insurance companies come into play. This is due to the fact that every vehicle operator is obliged to take out so-called third-party insurance(compulsory insurance), which then covers any damage. This obligation is imposed regardless of whether the car is actively used or whether it is sitting uselessly behind the house. If for some reason the owner of the car is late in paying the compulsory liability insurance, he does not have to worry. If he forgets to make the payment, he will receive a reminder.
Of course, we can still meet people who do not have compulsory liability insurance despite the legal obligation. However, in the event of an accident, they risk both a hefty fine and having to pay compensation out of their own pocket.
The amount of compulsory insurance is influenced by a number of factors relating to the car (type, performance, year of manufacture, make, etc.) and also the policyholder (age, place of residence, bonuses and malus). It is also influenced by the range of services offered, i.e. various supplementary insurances and additional insurances.
Thus, by taking out third-party liability insurance (i.e. by taking out compulsory third-party liability insurance), the insured has the right to have the insurer pay for the damage for which the victim is liable. The amount of damages paid is based on the limits set out in the insurance contract.
Although compulsory liability insurance is primarily intended to cover damage caused to another person’s property, it is thanks to additional insurance that you can also be protected in the event of damage to your own car.
What to do if you cause a car accident?
If you have been unlucky enough to be involved in a car accident, your next course of action depends on the damage caused. If the damage to the parties involved does not exceed CZK 200,000 and if there is no damage to the health or property of a third party, then there is no need to call the Czech Police.
In this case, what the parties themselves conclude and state about the accident and its cause will be decisive. It is necessary to fill in the relevant insurance company’s report and state who was at fault for the accident. It is recommended to document everything, for example by taking pictures on a mobile phone.
If the Police of the Czech Republic are called to the accident, it is their investigation and conclusions that form the basis for the actions of other authorities, such as the courts or insurance companies. The police either deal with the matter on the spot, e.g. by imposing a block fine, or refer the matter to an administrative authority for misdemeanour proceedings. However, once you have paid the block fine, you have admitted your guilt and there is no remedy.
When to call the police?
Always call the police:
- if damage to any of the vehicles exceeds CZK 200,000 (including the goods being transported),
- a traffic accident where people are injured or killed,
- if the accident causes any damage to third party property, e.g. damage to a parked vehicle, the fence of a family house, a collision with a public lighting pole, etc,
- if one of the parties refuses to make a record or if the parties do not agree on the fault,
- where the accident damages a road or destroys or damages a part or accessory of a road (traffic sign, bollards, etc.) or damages a public utility (equipment at level crossings, etc.) or the environment (spillage of operating fluids, etc.),
- if you yourself are unable to restore the flow of traffic after an accident.
However, for more serious traffic accidents, the matter falls within the jurisdiction of the court, which will decide on the fault (e.g. for the offence of criminal damage to health, endangerment under the influence of an addictive substance, etc.) and the possible punishment.
The assessment of fault or contributory fault may have a significant bearing on the damages to be paid to the parties. It is therefore worthwhile to use legal services and consult everything in advance.
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Accident report and certificate of involvement in an accident
The first step after ensuring your safety and calling the police, if necessary, is to fill in an accident report. This is a standardized form from insurance companies that lists the circumstances of the accident, the parties involved, and the damages incurred. This document is crucial to how compensation will subsequently be assessed following a car accident.
If the police are present at the scene, you will also receive a certificate of involvement, which serves as official proof that you were involved in the accident. Keep this document carefully – you will need it both for the insurance company and, if necessary, for further proceedings.
Tip for article
Tip: If the accident occurred in the course of or in direct connection with employment, compensation will be subject to the Labour Code, which we have discussed in more detail in our article.
Compensation after an accident from the perspective of the at-fault party
As the person at fault in a car accident, you don’t usually have to pay out of your own pocket. Compulsory liability compensation is a basic principle that protects you. The insurance company will pay for repairs to the victim’s vehicle, property damage and personal injury from your compulsory liability insurance.
But beware of the limits: if the amount of damage exceeds the agreed limit or if the insurer proves that you were under the influence of alcohol or drugs, it can claim so-called recourse compensation – that is, a refund of the money paid out.
Budget compensation is also a common issue. The injured person can get the money directly into their account and arrange the repairs themselves. For the at-fault party, this does not change anything – it is still compensation from the compulsory liability insurance.
Out-of-court settlements after a car accident
If the accident is minor and the victim is willing to settle the matter without unnecessary bureaucracy, you can agree on an out-of-court settlement after the accident. Typically, these are situations where the damage is minor and both parties agree on an amount that the at-fault party will pay directly.
However, we advise caution here too – always have written confirmation of payment, ideally with the victim’s signature, to avoid further claims later. If the damage is more severe, it is better to use a traditional insurance claim, which is safer.
What the victim is entitled to and how it relates to the guilty party
From the perspective of the at-fault party, it is good to know what the victim is entitled to in a car accident. Typically, this includes:
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vehicle repair or replacement value in the event of total loss,
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the cost of hiring a replacement vehicle,
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loss of earnings if the accident has prevented them from working,
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compensation for pain and suffering and permanent injuries,
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compensation for damaged personal belongings, if applicable.
The insurance company can pay a significant amount of money and it pays to know that it all comes from your liability insurance.
If the insurance company denies part of the claim or offers you less than the actual damages, don’t be afraid to contact an attorney. He or she can review the insurance company’s process and help you get full compensation.
In practice, we often see insurance companies cut benefits due to depreciation or disputes over the course of an accident. Clients often find out through our analysis that they are then entitled to a higher amount than they were originally offered.
This was also the case for Mr Karl, who after a car accident was offered compensation from his insurer of approximately CZK 90,000 for damage to his vehicle. He had doubts whether the amount was correct, as the repair at the garage should have cost significantly more.
After our check of the expert’s report and the insurance company’s calculation, it turned out that some items had been underestimated and not all the costs associated with the repair had been included. After completing the supporting documents and further negotiations, the insurance company reassessed the claim and increased the benefit.
Such situations are not exceptional and show how important it is to check the amount of compensation carefully.
Amount of compensation in a car accident
Many drivers are also interested in how the amount of compensation in a car accident is determined. Insurance companies rely on spreadsheets, expert reports and price lists for repair work. They also take into account the so-called depreciation – that is, the wear and tear on the vehicle. This means that the victim does not always get the full price of new parts, but the amount reduced by normal wear and tear.
In practice, the victim may therefore receive less than he or she expected. This is a frequent subject of car accident compensation reviews, where people share their experiences with insurance companies.
Summary
Frequently Asked Questions
How long do I have to claim compensation after a car accident?
A claim for compensation is usually time-barred 3 years after you became aware of the damage and who was responsible for it. If the damage was caused by criminal activity, the limitation period may be longer.
What should I do if the person at fault for the accident does not have compulsory third party insurance?
In this case, you can contact the Czech Insurers’ Bureau. The insurance company pays compensation from the guarantee fund and then recovers it from the guilty party.
Do I have to accept the insurance company's offer to repair my vehicle at the garage?
No. The injured person can choose between having the vehicle repaired at a repair shop or receiving a cash refund. They can then use the money to make the repairs as they choose.
Can the insurance company reduce the compensation due to wear and tear?
Yes. For some parts, the insurance company may take into account wear and tear (called depreciation). In practice, however, it is not always justified, so it is worth checking the damage calculation.
What if the insurance company refuses to pay compensation?
First, you can file a claim and request a reassessment of the damage. If the dispute persists, you can go to a financial arbitrator or seek compensation through the courts.
Can I also claim compensation for psychological damage after a car accident?
Yes. If a car accident causes serious psychological consequences, compensation may also include non-pecuniary damage, such as pain and suffering or compensation for loss of amenity.
