Approved Repairer Clause (Werkstattbindungsklausel)

Purpose

The approved repairer clause is a common motor own-damage tariff feature under which the policyholder agrees to have repairs following a partial or fully comprehensive claim carried out exclusively at a workshop nominated by the insurer’s partner network. In return, the insurer grants a premium discount, which depending on provider and market typically ranges from around ten to twenty per cent of the own-damage premium component. Fixed workshop networks and volume-based repair rates lower the insurer’s average claims cost, which funds the discount.

Effect and limits

The tie-in usually applies only to own-damage (comprehensive) claims, not to third-party liability claims; an innocent third party remains free to choose any repairer. If the policyholder repairs the vehicle at a non-network garage in breach of the agreement, the policy typically provides for a reduced indemnity, often capped at the labour rates agreed with the partner network. Such reduction clauses must, however, be drafted transparently and explain the consequences of non-compliance, since courts in the DACH jurisdictions can otherwise strike them down as unfair standard contract terms.

Negotiation and practice

Before signing, it is worth checking network density, courtesy-car and warranty benefits, and whether the network includes franchised dealer workshops or only independent garages, which matters for newer vehicles still under manufacturer warranty. The clause tends to suit high-mileage drivers and owners of older vehicles particularly well, while owners of vehicles subject to brand-workshop warranty conditions should scrutinise network coverage carefully before opting in.