One of the greatest financial losses faced by vehicle owners after traffic accidents is the decrease in the market value of the vehicle, as it acquires "accident-damaged" status even if repaired. This situation is called "Vehicle Depreciation." Recently, the annulment decisions of the Constitutional Court, followed by the established precedents of the Court of Cassation, have shifted the balance in depreciation calculations in favor of vehicle owners.
In this article, we will examine the Court of Cassation's emphasis on "Market Value" in depreciation calculations and the legal approach that redraws the boundaries of insurance companies' liabilities.
Previously, insurance companies made calculations based on complex mathematical formulas found in the General Conditions of Traffic Insurance, often resulting in payments far below market realities for vehicle owners.
Through its landmark rulings, the Court of Cassation has adopted the principle of "Actual Damage." Accordingly, instead of abstract formulas in insurance general conditions, the free market purchase and sale values of the vehicle on the date of the accident must be taken as the basis when calculating depreciation compensation. In other words, the Court of Cassation rejected the "whatever the formula says" approach and seeks the answer to the question: "How much value did this vehicle actually lose in the market?"
In past practices, depreciation was not paid for vehicles above a certain mileage (e.g., over 165,000 km) or for damage to plastic bumper components.
With the interventions of the Court of Cassation and the Constitutional Court, these strict limitations have largely been eliminated. The Court of Cassation can now accept that even if no technical depreciation occurs due to a part replacement or repair, the data recorded in the "Tramer Record" (Damage Record) creates a loss of value in the eyes of a potential buyer. While each concrete case is evaluated individually, depreciation can now be claimed even for high-mileage vehicles.
According to Court of Cassation decisions, expert witnesses must be appointed by courts or the Insurance Arbitration Commission for an accurate depreciation calculation. The expert should base their assessment on the following criteria:
Make and model of the vehicle,
Specifications (trim level),
Extent of damage and repair procedures performed,
Mileage of the vehicle,
Age of the vehicle at the time of the incident,
Claims of the plaintiff,
The entire scope of the file and market conditions.
In vehicle depreciation claims, the statute of limitations is 2 years from the date the accident and damage are discovered, and in any case, 10 years from the date of the accident. If the accident resulted from a criminal act (e.g., accidents involving injury or death), the longer "Criminal Statute of Limitations" in the Penal Code applies.
Before filing a lawsuit or applying to the Insurance Arbitration Commission, it is a legal requirement to make a written application to the relevant insurance company. If the insurance company does not respond within 15 days, rejects the claim, or makes an incomplete payment, the legal process can be initiated.
Due to their profit-oriented nature, insurance companies generally tend to pay the minimum amount. In order to receive the full compensation you are entitled to under the "Actual Damage" principle of the Court of Cassation, it is essential that the process be conducted under the supervision of an expert lawyer, based on precedent decisions. Incomplete applications may result in a loss of rights.
You can contact Balta Karaca Law Firm to collect your vehicle's depreciation in full and to defend your rights in light of the current decisions of the Court of Cassation.