After the calculation, in many casco cases you face a choice: have the car repaired against invoice, or accept a cash settlement and arrange the repair yourself? Both routes are legitimate – but each is stronger in different situations, and the difference isn't always obvious.
- Invoice-based route: the repair is reimbursed against the invoice – a more complete repair and documented value, but a more constrained process.
- Cash settlement route: the insurer pays the calculated amount – fast and flexible, but the risk of any shortfall sits with you.
- Before deciding, clarify: VAT treatment, depreciation, any future resale, and the risk of hidden damage.
How do the two routes work?
With invoice-based settlement, the repair is reimbursed on the basis of the garage's invoice – typically through direct settlement with the garage or by later reimbursement; deductions (the deductible, any depreciation) apply according to the terms. With the cash (calculation-based) route, the insurer offers the amount it has calculated from the damage assessment – after payment, arranging and overseeing the quality of the repair is your own responsibility.
Which route is stronger, and when?
The invoice-based route is strong for a newer, more valuable car: a documented, professional repair is good both for the car's value and for its later resale – the garage invoice becomes part of the value file. The cash route is attractive where the owner would rather organise the repair themselves, or is happy to live with minor cosmetic flaws. The trap: sorting out hidden damage that turns up AFTER you've accepted the cash amount is harder – so be cautious about a quick cash settlement if the damage looks like it may need stripping down to assess properly.
The checklist of questions before you decide
1) Is the calculation itemised? Ask for it, and go through it. 2) How is VAT recovered on the route in question – is the formula different for a private individual and for a company? 3) Does depreciation apply, and to which items? 4) Can hidden damage be ruled out – was there a strip-down inspection? 5) Are you planning to sell the car soon – does a documented repair help there? If there's a gap between the cash amount offered and the realistic repair cost, that's already a claim-value dispute, and there is an orderly route for that.
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