(Vehicle Depreciation, Substitute Vehicle Fee, Material and Moral Compensation Guide)
Every year, thousands of traffic accidents occur in Turkey, causing both material and moral damages. The procedures following an accident—from obtaining reports to filing lawsuits—are subject to specific legal processes. Properly managing these steps is crucial for obtaining compensation from insurance companies and avoiding loss of rights.
The following steps should be carefully followed after an accident:
Liability in accidents is determined based on the degree of fault.
In injury accidents, both criminal (TCC Art. 85, 89) and compensation lawsuits (TBK Art. 49 et seq.) may arise.
Legal basis: TBK Art.49, 50–52 (fault/causality), Art.54 (material damage items); Highway Traffic Law (KTK) Art.85 (liability of the operator/driver), Art.91 (compulsory insurance).
Possible defendants: The at-fault driver, vehicle operator/owner, compulsory traffic insurer (ZMS), and in some cases, the comprehensive (casco) insurer by way of recourse.
Main compensable items:
Evidence: Accident report, fault/expert reports, repair invoices, photos, medical records, police/gendarmerie reports.
Competent court: Pursuant to CCP Art.16 – the place where the wrongful act occurred, the defendant’s domicile, or the victim’s domicile.
Limitation period: Two years from discovery, and in any case ten years (TBK Art.72). If a criminal case exists, this period is extended in line with the criminal limitation.
Legal basis: TBK Art.56.
Who may file: The injured party; in case of death, close relatives (spouse, children, parents, etc.).
Criteria: Severity of the incident, permanent disability, degree of suffering, social/economic status, and Court of Cassation precedents.
Evidence: Forensic medical reports, treatment records, loss-of-capacity rates, psychiatric evaluations.
Insurance coverage: Compulsory traffic insurance often excludes moral compensation; typically, the liable driver/operator is sued, and the policy must be examined in detail.
Even if the vehicle is repaired, it is considered “damaged” in the second-hand market, leading to a decrease in value. This difference must be paid by the at-fault party (driver/operator) and, in most cases, by their compulsory traffic insurer—if covered under the policy terms.
Legal basis: TBK Art.49; KTK Art.85; compulsory traffic insurance general conditions.
Who can claim:
Who to claim from:
How it’s calculated:
An expert determines the loss considering:
Example:
Pre-accident value: 1,000,000 ₺
Post-repair market value: 950,000 ₺
→ Depreciation loss: 50,000 ₺
If the insurer refuses or underpays, you can sue for the difference.
When it’s granted or not:
Granted for significant structural or cosmetic repairs that lower market perception (e.g., body or frame work) and when the vehicle is relatively new.
Rarely granted if the vehicle is very old/high-mileage or has multiple prior accident records.
Conditions & exceptions:
Limitation period: Two years (from the event) for insurance claims; two/ten years under general tort rules.
Evidence checklist: Accident report, photos, repair invoices, expert report, TRAMER record, market value ads.
FAQ:
(What is “loss of use compensation,” who is liable, how is it claimed?)
When your vehicle is under repair after an accident, you cannot use it. During this period, your daily life is disrupted—commuting, family transport, etc. This period is called “loss of use.” It represents the daily rental equivalent of a comparable vehicle for the period your car is unavailable.
You may claim this compensation from the insurer or the at-fault driver/operator.
Legal basis: TBK Art.49–50; KTK Art.85.
Who can claim:
Who to claim from:
Do I have to rent a car?
No. Even if you didn’t rent a replacement, courts calculate your loss based on the market average rental rate for a similar vehicle.
Calculation:
Example:
Calculation logic:
Equivalent daily rental price × reasonable downtime (repair duration).
Excess delays (e.g., waiting for parts) may be deducted by experts.
Legal basis: TBK Art.54–55.
Compensation items:
Evidence: Forensic or medical board reports, SGK records, income data, occupation info.
Insurance coverage: Within policy limits; excess from driver/operator. The policy must be carefully reviewed.
Legal basis: TBK Art.53–55; KTK Art.85.
Eligible claimants: Persons financially supported by the deceased (spouse, children, parents; sometimes siblings).
Calculation: Based on actuarial life tables, projected income, fault ratio, and unavoidable risk deductions.
Insurance: Within compulsory policy limits; excess from the driver/operator.
(“What is total loss, how is market value determined, how much does insurance pay, how to contest underpayment?”)
What is Total Loss?
If repair costs approach or exceed a certain ratio of the vehicle’s market value, or if safe repair is impossible, the car is deemed a “total loss.”
Market Value (Rayiç Bedel):
The car’s pre-accident fair market value, used by the insurer as the payment basis.
Example:
Salvage Value (Sovtaj):
Value of the vehicle’s remaining or usable parts. The insurer deducts this from the payout.
Example: 900,000 ₺ – 100,000 ₺ = 800,000 ₺ payable.
How insurers calculate:
Common issues:
What to do:
FAQ:
Legal basis: Insurance Law No. 5684, Art. 30.
Process: Written claim to insurer → 15 days (no response/non-payment) → Electronic arbitration application + fee.
Advantages: Faster, lower cost, document-based review; awards are binding within certain monetary limits.
Note: Monetary thresholds and finality limits change yearly; check current amounts.
Strategy: Use arbitration for clear-cut, low-value cases; courts for complex/high-value claims.
Burden of proof is crucial. Keep all the following:
Insurance companies often underpay or minimize liability.
Therefore:
At Keleş Law, we diligently pursue our clients’ vehicle depreciation, substitute vehicle, and material/moral compensation claims.
Every post-accident step has legal value. With proper documentation and professional guidance, both material and moral losses can be fully compensated. Timely applications ensure that lost value can be recovered effectively.
1. What should I do immediately after a traffic accident?
First secure your safety: stop the vehicle, turn on hazard lights, and, if necessary, pull into the emergency lane. If there are injuries, call 112 and the police. If it is only property damage, complete a Traffic Accident Report (kaza tespit tutanağı).
2. Is it mandatory to call the police for accidents with only property damage?
If there are no injuries and both parties agree on the facts, calling the police is not mandatory. The drivers may complete a bilateral accident report themselves.
3. Who prepares the accident report?
The parties may prepare it among themselves. However, if there is a dispute or a foreign-plated vehicle is involved, the traffic police should be called.
4. What happens if no report is prepared?
The accident cannot be reported to the insurer, fault rates cannot be determined, and your right to compensation is put at risk. There must be a report or an official record.
5. How many days do I have to notify the insurer of the accident?
You must notify the Compulsory Traffic Insurance (ZMSS) within 5 business days. If you have comprehensive (kasko) insurance, notify your kasko insurer within the same period.
6. Who is liable in a traffic accident?
The at-fault driver, the vehicle’s operator/owner, and, where applicable, the compulsory traffic insurer (ZMSS) are jointly liable.
7. How is the fault rate determined?
Based on the accident report and police findings, an expert/forensic expert determines the percentage of fault.
8. If I am 100% at fault, can I receive compensation?
No. A party who is fully at fault cannot receive compensation. If the other party is also partly at fault, partial compensation may be available proportionally.
9. What is a pecuniary damages claim?
A claim to recover financial losses arising from the accident (repairs, medical expenses, loss of earnings, loss of vehicle value, etc.).
10. Who may bring a non-pecuniary (moral) damages claim?
Persons injured in the accident, or in case of death, the deceased’s relatives (mother, father, spouse, children).
11. Can pecuniary and non-pecuniary damages be claimed together?
Yes. Both can be requested in the same lawsuit.
12. How long does a damages lawsuit take?
On average 8–18 months. In insurance arbitration, results are generally obtained in 3–6 months.
13. What is diminished value?
Even after repairs, a vehicle is considered “accident-involved” in the used-car market and loses value. The difference is the diminished value compensation.
14. Who pays diminished value compensation?
The at-fault party’s Compulsory Traffic Insurance (ZMSS). If policy limits are exceeded, the remainder is sought from the at-fault driver.
15. Can I receive diminished value without renting a car?
Yes. Renting a car is not required; this is a separate head of damage.
16. What documents are needed for diminished value?
Accident report, fault/expert report, photos of damage, repair invoices, TRAMER records, and market price listings (for reference).
17. How long does a diminished value claim take?
In arbitration 3–6 months on average; in court 8–15 months.
18. What is the limitation period for diminished value?
2 years from the date you became aware of the claim and, in any event, 10 years.
19. What is loss of use?
The loss arising from being unable to use your vehicle while it is in repair after the accident.
20. From whom is the replacement vehicle cost recovered?
From the at-fault party’s ZMSS; if policy limits are exhausted, from the at-fault driver.
21. Can I recover this without renting a car?
Yes. Actual rental is not mandatory. A hypothetical loss is calculated using market daily rental rates for an equivalent vehicle.
22. How is the replacement vehicle cost calculated?
Daily rental rate × number of days the vehicle is in the repair shop.
Example: 1,200 TL/day × 7 days = 8,400 TL.
23. In which situations is this not payable?
24. What does “pert total” (total loss) mean?
If post-accident repair costs exceed the vehicle’s market value, the vehicle is deemed a total loss.
25. What is market value (rayiç bedel)?
The vehicle’s real market value before the accident. Insurance payouts are calculated on this basis.
26. What is “sovtaj”?
The salvage/residual value of a total-loss vehicle’s usable parts. The insurer deducts the sovtaj from the payout.
27. What if the insurer understates the market value?
Obtain an independent expert report and apply to the Insurance Arbitration Commission or file a lawsuit.
28. What is the Insurance Arbitration Commission (Sigorta Tahkim Komisyonu)?
An official body offering faster and less costly resolution of insurance disputes.
However, in practice, calculations performed by the courts are often more accurate than those in arbitration.
29. How long does an arbitration decision take?
Generally 3–6 months. Depending on the case, it may extend an additional 3–6 months.
30. Is an arbitration decision final?
It is final up to certain monetary thresholds; above those thresholds, it may be appealed.
31. Arbitration or court — which should be preferred?
Arbitration is faster for straightforward files. Courts may be preferable for complex or high-value matters.
33. Are criminal proceedings initiated for traffic accidents?
Yes. In accidents involving injury or death, the prosecutor generally initiates a criminal case.
34. Do criminal proceedings affect the compensation lawsuit?
Yes. Fault determinations and reports in the criminal file are used as evidence in the civil case.
35. Can I file a compensation lawsuit before the criminal case concludes?
Yes, you do not have to wait. However, once the criminal case concludes, the fault status becomes clearer.
36. What is the general limitation period for traffic-accident cases?
2 years (from discovery) and, in any event, 10 years.
If there is a criminal case, the criminal limitation may apply.
37. From when does interest accrue?
From the date of your written notice to the insurer (date of default). Interest accrues from that date.
38. What are the most important pieces of evidence?
Accident report, repair invoices, expert report, photos of damage, TRAMER records.
39. Does selling the vehicle affect the right to compensation?
No. If the vehicle was registered in your name on the date of the accident, your right to compensation continues.
40. Is it mandatory to hire a lawyer for a traffic-accident case?
Not mandatory, but strongly recommended. A lawyer helps prevent loss of rights and underpayments by insurers.
41. Is mediation mandatory?
Where insurers are parties, mandatory mediation applies.
For non-insurance disputes, mediation is optional.
43. Can I sell the vehicle after the accident?
Yes. However, the diminished value claim must be made by the owner as of the accident date.
44. What should I do if the insurer refuses payment?
Obtain the written denial, file an objection, then proceed to arbitration or court.
45. How much compensation can be recovered in traffic-accident cases?
It depends on the type of loss, vehicle value, fault percentage, and expert reports.
Keleş Law pursues a maximum compensation strategy in every case.
46. Is a rental invoice mandatory for loss-of-use compensation?
No. A rental invoice helps prove the claim but is not required. Courts can calculate using market rental rates.
47. For how many days can loss-of-use be claimed?
For the period the vehicle is in the repair shop. Commonly 5 to 15 days, determined by service entry–exit records.
48. What if the insurer underpays?
Submit a written objection first. If unresolved, apply to arbitration or file a lawsuit.
49. If the vehicle is registered to a company, can compensation still be claimed?
Yes. Companies may also claim loss-of-use due to business interruption.
50. How is replacement/loss-of-use calculated for commercial vehicles?
Both replacement cost and loss of profit are calculated. Turnover, tax returns, and accounting records are considered.
51. If parts arrive late at the repair shop, is that period included?
If the waiting time is reasonable and documented, yes. Excessive delays may be reduced by the expert.
52. If I have a spare vehicle, can I still recover loss-of-use?
No. If you actually used another vehicle, courts may find no loss-of-use — the claim can be rejected or reduced.
53. What if the insurer says “you are at fault”?
If fault allocation is incorrect, a new expert report and the criminal file can be used to re-determine fault. The insurer’s objection does not extinguish your right to claim.
54. Can loss-of-use and diminished value be claimed together?
Yes. They are independent heads of damage and may be claimed in the same application or lawsuit.
55. What does the expert consider in loss-of-use cases?
56. What is a policy limit?
Annual ZMSS limits change every year. Any amount exceeding the limit is sought from the at-fault driver.
57. Is a lawyer required to obtain loss-of-use compensation?
Not required but recommended, as insurers often underpay; applying through a lawyer helps prevent loss of rights.
58. The insurer says “we paid,” but it’s too low — what now?
You can recover the shortfall via arbitration or court. It is sufficient to prove the difference with expert reports, service records, and comparable rental rates.
