Vehicle value in a claim:
what you should know
Current value, replacement value, total loss, diminished value – the key Swiss valuation terms explained by independent experts.
How is vehicle value determined in Switzerland?
Swiss experts value vehicles according to the valuation guidelines (BWR) of the VFFS association, established since 1966. Starting point is a calculated base value (vehicle category, list price, age, mileage), adjusted by individual factors such as condition, equipment, investments and the current market situation.
The key terms
Current value (Zeitwert)
The amount your vehicle would fetch on the market – the basis for comprehensive (casco) settlements.
Replacement value
The amount needed to procure an equivalent vehicle – higher than the current value. Applies in liability claims.
Residual value
The value of the damaged vehicle. Compensation in a total loss = current/replacement value minus residual value.
Diminished value
Loss in resale value after repair – relevant for newer vehicles (current value at least about 50% of the list price).
How the base value is calculated
The base value results from the vehicle category, the list price at first delivery, the operating period (age in months) and the mileage – combined in the mean monthly figure (MMZ). Value adjustment factors are then applied: condition, equipment, investments, existing damage and the current market situation. This is what distinguishes an expert valuation from a purely statistical figure.
Base value and current value
The base value already assumes an average condition and proportionate tyre wear for age and mileage. The current value is the amount realistically obtainable on the free market on the valuation date without further investment.
- Market situation: demand can adjust the result by up to ±10% of the new price under the BWR.
- Visual and technical condition: documented care and manufacturer-compliant maintenance can each affect the result by up to ±5% of the new price.
- Tyres and investments: recent tyres, servicing and value-preserving work are considered proportionately.
- Existing damage: unrepaired damage and defects reduce the value.
Where differences commonly arise
A particularly well-maintained vehicle with recent servicing, new tyres and strong demand can be worth materially more than its calculated base value. An independent valuation checks whether all adjustment factors were included.
Comprehensive or liability claim?
For comprehensive claims, the policy conditions define whether current value or a current-value supplement applies. For liability claims, the relevant measure is generally replacement value: the amount required to obtain an equivalent vehicle.
Total loss and diminished value
An economic total loss exists when repair costs exceed the current value – see our guide on total loss. A merchant diminished value can be claimed for newer vehicles after proper repair; a technical diminished value is excluded under the BWR 2020 when the repair follows manufacturer specifications.
Example: repair or vehicle change?
Current value CHF 28,000; repair costs CHF 23,000; residual value CHF 7,000. In the DE reference calculation, repair plus diminished value and replacement transport totals CHF 25,400, while current value plus incidental replacement costs minus residual value totals CHF 21,700. In that example, changing the vehicle is cheaper; the result depends on the actual loss and market.
What to do if the value seems wrong
- Check the policy conditions and any current-value supplement.
- Compare genuinely equivalent vehicles on the current Swiss market.
- Collect service records, tyre and repair invoices, and equipment evidence.
- Ask the insurer or assessing expert to explain each adjustment.
- Where a material difference remains, obtain an independent BWR-based valuation and ask legal expenses insurance about cost approval.
Does the insurer's figure seem too low?
Seek the conversation first. If a difference of about CHF 2,000–3,000 or more remains, an independent valuation usually pays off – since 2025 it is admissible documentary evidence in court.
Vehicle value – FAQ
Questions about your vehicle's value?
Neutral valuations according to the recognised Swiss BWR guidelines – by VFFS-trained experts.