What is vehicle depreciation?

What is Vehicle Depreciation? | Lawyer in Izmir

When a traffic accident occurs, the difference between the vehicle's price before and after the accident, based on its resale value, is called vehicle depreciation. Insurance companies do not cover this loss unless it has been specifically claimed.

In cases of compulsory financial liability insurance, the insurer shares joint and several responsibility with the vehicle owner at fault in an accident. According to Article 1409 of the Turkish Commercial Code, the at-fault party's traffic insurance is obligated to compensate for the damage and loss of value.

According to Article 85 of the Highway Traffic Law, the operator of a motor vehicle and the owner of the enterprise to which it belongs are jointly and severally liable for the resulting damage. In accordance with the relevant articles of the law, in accidents caused by the fault of the other party, the decrease in the value of the vehicle is claimed from the owner of the at-fault vehicle, the driver, and the Compulsory Financial Liability Insurance (Traffic Insurance) of the at-fault vehicle. With the Compulsory Financial Liability Insurance Policy, the insurer is jointly and severally liable for the responsibility of the at-fault vehicle owner.

There are certain conditions that must be met to claim compensation for the depreciation of a vehicle. These are:

1. Firstly, there is a two-year statute of limitations for claims for diminished value, starting from the date of the accident. This means that if two years have passed since the accident, it will no longer be possible to file a claim for diminished value compensation. This period is based on Article 72 of the Turkish Code of Obligations.
2. Kaza tek taraflı olarak yaşanmışsa veya çok taraflı olsa dahi değer kaybına uğrayan aracın sürücüsü %100 kusurluysa, yine değer kaybı tazminatı talep etmek mümkün değildir.
3. If the vehicle has previously sustained damage in the same area, compensation for depreciation cannot be claimed. In this case, it is necessary to check the vehicle's past accident records.
4. The vehicle must be a maximum of 36 years old, have a maximum mileage of 160,000 km, and must not be a scrap vehicle.

What is Vehicle Depreciation & How is it Calculated?

Firstly, the vehicle's manufacturing date is important. Its value decreases with age. Whether or not it has been involved in an accident before is also crucial. Another important factor is the vehicle's mileage. Vehicles that have traveled a lot in a short time experience greater depreciation in value compared to vehicles with lower mileage. Finally, the vehicle's registration date and market value are also important in the calculation. More expensive vehicles experience greater depreciation. To summarize the points used in the calculation:

1. Vehicle make and model
2. Vehicle manufacturing date
3. The vehicle's mileage at the time of the accident.
4. The market value of the vehicle in the used car market as of the date of the accident, compared to similar models.
5. Vehicle damage history
6. Vehicle registration date

From whom should compensation for vehicle depreciation be claimed?

Compensation for diminished value is claimed from the other party's insurance, the vehicle owner, or the driver (the person driving the vehicle) in proportion to the other party's fault. If a vehicle has suffered a decrease in value as a result of an accident, it is mandatory to first apply to the insurance company. To apply to the insurance company, you need to gather the necessary documents and submit an application form. These documents include: the traffic accident report, the statement of the parties, witness statements (if any), photographs of the accident, the vehicle registration certificate, and the claim itself. The insurance company is obligated to respond to your application within 15 days.

If you do not receive a response or a negative reply from the insurance company, or if you have a dispute regarding the amount, you can apply to the insurance arbitration commission. This public institution, called the insurance arbitration commission, is an authorized, official, and serious organization empowered by law to make decisions in place of the "Civil Courts of First Instance." You can claim your rights by submitting a detailed application to this institution, with the assistance of a lawyer. You can then track the hearing date on the commission's website. Alternatively, you can also seek your rights by filing a lawsuit directly with the "Civil Court of First Instance.".

Even if the innocent party has comprehensive insurance, it may not cover the depreciation in value of the vehicle after an accident. In this case, the owner of the damaged vehicle must sue the insurance company of the party at fault. However, a prerequisite for filing a lawsuit is first applying to the insurance company of the party causing the damage for compensation. Lawsuits filed without first applying to the insurance company are rejected by the courts due to the lack of a prerequisite for filing a lawsuit.

In compensation cases concerning loss of value due to tortious acts, the competent court is the civil court of first instance, which is a general civil court. However, if the lawsuit is also filed against the insurance company, the competent court is... Turkish Commercial Code’According to Article 4, it will be the Commercial Court of First Instance. For detailed information on this matter, please contact us. Contact page.

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