Car Depreciation Due To Accident in Turkey | 2025

Even if your vehicle is repaired to the highest standards with original parts after a traffic accident, a decrease in its second-hand market value is inevitable. The primary reason is that the vehicle is registered in the TRAMER (Traffic Insurance Information and Monitoring Center) records as “damaged” or “having an accident history.” A potential buyer, even if the vehicle is technically flawlessly repaired, will be inclined to pay a lower price for a vehicle with an accident history compared to an equivalent model without one.

In Turkish law and especially in the case law of the Court of Cassation (Yargıtay), “vehicle depreciation” is not considered hypothetical or speculative damage, but rather a “real and direct damage” item. This damage represents the concrete difference between the undamaged second-hand market value of the vehicle just before the accident and its market value after the repairs are completed. Therefore, claiming compensation for this reduction in the vehicle owner’s assets is a fundamental legal right.

Legal Foundations for Vehicle Depreciation Claims

The legal basis for vehicle depreciation claims in Turkey rests on three fundamental and complementary areas. This multi-layered structure places the claimant’s demands on a solid foundation.

1. Primary Basis: Turkish Code of Obligations (TCO) – Tort Liability

The most fundamental basis for depreciation claims lies in the provisions of the 6098 Turkish Code of Obligations (TCO) regulating tort (wrongful act) liability. Article 49 of the TCO mandates that “Whoever causes damage to another with a faulty and unlawful act is obliged to remedy this damage.” A traffic accident caused by a faulty driver is a classic example of a tort. The vehicle depreciation arising from this act constitutes a direct part of the “damage” that must be compensated.

2. Reinforcing Basis: Highways Traffic Law (HTL) – Strict Liability

The 2918 Highways Traffic Law (KTK) takes tort liability a step further by introducing a form of “strict liability” (hazard liability) for vehicle operators. According to Article 85 of the HTL, if the operation of a motor vehicle causes damage to someone, the operator of the vehicle (usually the registration owner) is jointly and severally liable for the resulting damage. The significance of this provision is that it holds the vehicle owner responsible, even if they were not the driver at the time of the accident.

3. Application Mechanism: Insurance Law and Related Legislation

The mechanism that ensures the practical collection of depreciation claims is insurance law.

• Turkish Commercial Code (TCC) Article 1409: This article states that the insurer is responsible for the damage arising from the realization of the risk specified in the contract. Judicial decisions have clearly established that vehicle depreciation, accepted as direct damage, must be covered by the at-fault party’s Compulsory Financial Liability Insurance (ZMSS – Traffic Insurance).

• ZMSS General Conditions: This fundamental text regulating traffic insurance leaves no room for doubt by stating, under the “Material Damages Coverage” heading, that the coverage includes “depreciation occurring in the damaged vehicle.”

4. Judicial Confirmation: The Role of Court of Cassation (Yargıtay) Precedents

The Court of Cassation has repeatedly confirmed in its stable decisions that vehicle depreciation is a real damage item and must be compensated. Its decisions have established the “actual market value difference” method as the standard for calculating compensation.

The Depreciation Claim Process: Who Can Claim, Against Whom?

Right to Claim (The Claimant)

The primary person who can claim vehicle depreciation compensation is the registration owner (malik) of the damaged vehicle. However, there is a critical prerequisite for exercising this right: the fault ratio.

• Decisiveness of the Fault Ratio: It is essential that the vehicle owner claiming depreciation is not 100% at fault in the accident. If a driver caused the accident entirely through their own fault, they cannot claim the depreciation on their own vehicle from the other party or their insurance.

• Partial Fault (Contributory Negligence): Having partial fault in the accident does not eliminate the right to claim. However, the amount of compensation to be received is subject to a reduction proportional to their own fault ratio (fault deduction). For example, if the depreciation calculated by an expert is 20,000 TL and the claimant is found to be 25% at fault, the compensation they can claim will be 15,000 TL, corresponding to the 75% portion for which they were not at fault.

Responsible Parties (Joint and Several Liability)

The Turkish legal system deems the parties responsible for the damage as “jointly and severally liable” to the victim. This means the claimant can demand the full compensation from any of the responsible parties.

The responsible parties are:

1. The At-Fault Vehicle Driver (per TCO Article 49)

2. The At-Fault Vehicle Owner/Operator (per HTL Article 85)

3. The At-Fault Vehicle’s Compulsory Traffic Insurer (ZMSS Company)

Practical Application: In practice, depreciation claims are almost always directed first to the at-fault party’s traffic insurance company. If the calculated depreciation exceeds the material damage coverage limit of the traffic insurance policy for that year (e.g., limits for 2025), the claimant can take legal action directly against the driver and/or vehicle owner for the excess amount.

Statute of Limitations (2 Years and 10 Years)

Vehicle depreciation claims are subject to the statute of limitations for torts (TCO Article 72).

• Primary Limitation Period: The period is two (2) years from the date the claimant learns of the damage and the person liable for compensation. In a typical traffic accident, this two-year period starts from the date of the accident.

• Absolute Limitation Period: In any case, the right to claim expires ten (10) years from the date the act was committed (the accident date).

Legal Avenues for Claiming Compensation

There are tiered and alternative ways to collect depreciation compensation.

Step 1: Mandatory Application to the Insurance Company (Lawsuit Prerequisite)

Before resorting to legal avenues such as arbitration or court, the claimant must make a written application to the at-fault party’s insurance company. This is a “lawsuit prerequisite,” and lawsuits filed without taking this step are dismissed on procedural grounds.

The insurance company must respond in writing within 15 days of receiving the application. If the company rejects the claim, pays partially, or does not respond within 15 days (tacit rejection), the claimant earns the right to proceed to the next stage.

Step 2. Alternative: Insurance Arbitration Commission (Recommended Path)

The Insurance Arbitration Commission is the most common, practical, and fastest way to resolve vehicle depreciation disputes.

• Process: The Commission assigns the file to an independent insurance arbitrator.

• Decision Timeframe: The arbitrator must make a decision within four (4) months at the latest. This is much shorter than court proceedings.

• Binding Decisions: The arbitrator’s decisions are legally equivalent to a court judgment and can be collected directly through execution (icra).

• Appeal Process: Appeals are tiered based on the dispute amount. Only for very high-value disputes is an appeal to the Court of Cassation (Yargıtay) possible.

Step 3. Alternative: Commercial Court (Judicial Path)

The claimant also has the right to file a lawsuit directly in the judicial system. The competent court is the Commercial Court of First Instance. However, this is the slowest route. A decision at the first instance court can take from 6 months to 2 years and is more costly.

Comparison of Legal Avenues

The following table compares the three main application routes.

Table 1: Comparison of Compensation Claim Channels

How is Vehicle Depreciation Calculated?

The Yargıtay Criterion: “Actual Market Value” Principle

The “gold standard” for determining the amount of depreciation is the method established by the Court of Cassation’s precedents. This method is based on calculating the difference between the undamaged second-hand market value of the vehicle just before the accident and its repaired second-hand market value after the repairs.

The Court explicitly rejects the application of rigid formulas that do not reflect actual market conditions. While insurance companies may use formulas in their initial offers, these formulas are not binding in a dispute (arbitration/court) if they do not reflect the “actual damage.”

Factors Affecting the Calculation

An expert, when determining the depreciation amount, considers:

• Vehicle Basics: Make, model, production year, mileage at the time of the accident, and first registration date.

• Market and Damage Details: The vehicle’s pre-accident second-hand market value, past TRAMER records, the nature of the current damage (e.g., was the chassis or pillar affected?), and the quality of parts used in the repair (original, equivalent).

Important Development: Mileage Limit Removed

A regulation in 2021 abolished the rule in the ZMSS General Conditions that barred depreciation claims for vehicles with over 165,000 kilometers.

Current Status (2025): There is now no legal mileage limit for claiming vehicle depreciation. Of course, very high mileage will naturally reduce the amount of depreciation calculated (as the pre-accident value is lower), but high mileage itself is not a barrier to claiming or a reason for rejection.

Conditions for Claiming Vehicle Depreciation (2025)

Requirements for a Valid Depreciation Claim

All of the following conditions must be met:

• Two-Party Accident: The accident must involve at least two motor vehicles. One-sided accidents (hitting a wall, barrier) are not covered by traffic insurance for this.

• Partial or Zero Fault: The claimant must not be 100% at fault.

• Damage and Repair: The vehicle must have sustained physical damage due to the accident, and this damage must have been repaired.

• No Prior Damage to the Same Part: The parts damaged in the current accident must not have been damaged in a previous accident and left unrepaired. A part can only lose its value once.

• Claim within Statute of Limitations: The claim must be made within the 2-year legal period from the accident date.

Situations That Invalidate a Claim

A depreciation claim is not legally possible in the following cases:

• 100% Fault: The claimant is entirely at fault.

• Total Loss (Pert Kaydı): If the vehicle is declared a “total loss” (salvage title). In this case, the insurance company pays the vehicle’s market value, and since the vehicle is not repaired and returned to the market, no “depreciation” damage occurs.

• “Mini Repair” Damages: Very minor damages (like paintless dent repair) that do not affect the vehicle’s value are excluded.

• Lapse of Limitation Period: Applications made after the 2-year legal period has passed will be rejected.

Eligibility and Disqualification Checklist

Table 2: Vehicle Depreciation Eligibility Checklist

Required Documents for the Application

A complete application file is critical for the success of the process.

Table 3: Required Documents for Vehicle Depreciation Claims

Conclusion and Strategic Recommendations for 2025

The right to vehicle depreciation compensation in Turkey is built on a solid legal foundation. Court of Cassation precedents have set the “actual market value” method as the standard, and recent legal changes, such as the removal of the mileage limit, have significantly favored claimants. For dispute resolution, the Insurance Arbitration Commission offers a distinct advantage over the courts in terms of speed and efficiency.

Strategic Recommendations for Claimants in 2025

Claimants seeking vehicle depreciation in 2025 are advised to follow these strategic steps:

• Act Quickly: Do not delay in collecting evidence and making the legal application to the insurance company. Start the process immediately to avoid missing the 2-year statute of limitations.

• Document Everything: Take as many detailed photos as possible at the accident scene. Meticulously keep all correspondence, invoices, and service forms related to the repair process.

• Get an Independent Expert Report: Do not rely solely on the report from the expert appointed by the insurance company. Having a depreciation report prepared by a licensed expert of your choice, based on Court of Cassation criteria, will be your strongest asset.

• Understand the Insurer’s Position: Be aware that the first offer from the insurance company will likely be based on their formulas and may be below the actual damage. View this offer as a starting point for negotiation, not a final decision.

• Use the Arbitration Commission Effectively: If the insurance company’s response after 15 days is not satisfactory, do not hesitate to apply to the Insurance Arbitration Commission. This path offers the ideal balance of speed, cost, and legal certainty for most claims.

• Consider Legal Support: While not mandatory, working with a lawyer specializing in insurance law significantly increases the likelihood of taking the correct steps, building a strong argument based on case law, and ultimately receiving higher compensation.