How to Claim Vehicle Diminution in Value?

Diminution in value refers to the decrease in the second-hand market price of your vehicle after it has been involved in an accident. Even if your vehicle, having been involved in an accident, undergoes a thorough repair, there will still be a decrease in its value. For instance, even if parts such as the engine hood or trunk lid are replaced with original parts by an authorized service center, the vehicle's value will still diminish.

The primary reason for your vehicle's diminution in value after every accident is the registration of the accident in the Tramer Records. When you wish to sell your vehicle, buyers who see this record will not prefer a vehicle that has been involved in an accident; even if they do, they will seek to purchase it at a lower price. Furthermore, the replacement of a vehicle part, or even the slightest paintwork, negatively impacts the vehicle's value.

1- Two years must not have passed since the date of the accident. 2- The accident must not have occurred entirely due to your fault (you must not be 100% at fault). 3- Your vehicle's age must not exceed 36 months. 4- Your vehicle must not have been declared a total loss (scrapped).

Such lawsuits may be filed within a two-year period following the identification of the party responsible for the accident. However, if more than 10 years have passed since the date of the accident, the statute of limitations will have expired, even if the damage suffered and the party causing it could not be identified. If longer limitation periods are stipulated in criminal laws depending on the nature of the accident, these periods shall be taken into consideration.

You may claim the damages you have suffered from the vehicle driver who caused the accident through their fault, or from the compulsory traffic insurance company of their vehicle. To recover your diminution in value, you may apply to the insurance arbitration commission, initiate enforcement proceedings, or file a lawsuit in the Civil Courts of Commerce.

The Insurance Arbitration Commission is an authority that resolves disputes through arbitrators specialized in Insurance Law. Decisions rendered by the Insurance Arbitration Commission have the nature of court judgments. Decisions of the Insurance Arbitration Commission regarding disputes up to the minimum fee determined by the Minimum Attorneyship Wage Tariff (AAÜT) are final. For amounts exceeding this sum, an appeal may be made to the Appeals Arbitration Board. It is also possible to initiate enforcement proceedings directly or file a lawsuit in the Civil Courts of Commerce without applying to the Insurance Arbitration Board.

The most critical factors considered in calculating vehicle diminution in value are; the vehicle's damage history, make and model, date of first registration, mileage, and year of manufacture. According to these criteria, the more valuable the vehicle, the greater the diminution in value it will suffer as a result of a traffic accident. Damage to parts that would not cause any diminution in value when replaced (e.g., wipers, tires, headlights, etc.) will not be taken into account in the calculation of diminution in value.

For example, if your vehicle's market value before the traffic accident was the minimum fee determined by the Minimum Attorneyship Wage Tariff (AAÜT) but after the accident this value becomes the minimum fee determined by the Minimum Attorneyship Wage Tariff (AAÜT), then the difference of the minimum fee determined by the Minimum Attorneyship Wage Tariff (AAÜT) is your approximate loss amount. If you have no fault in the accident, you can claim the minimum fee determined by the Minimum Attorneyship Wage Tariff (AAÜT); if your fault is 25%, you can claim the minimum fee determined by the Minimum Attorneyship Wage Tariff (AAÜT); if your fault is 50%, you can claim the minimum fee determined by the Minimum Attorneyship Wage Tariff (AAÜT); if your fault is 75%, you can claim the minimum fee determined by the Minimum Attorneyship Wage Tariff (AAÜT) as your vehicle diminution in value. If the entire fault lies with you, you cannot make any claim.

The calculation of vehicle diminution in value by insurance companies is carried out in accordance with the new regulation announced in the Official Gazette by the SDDK. Accordingly, as of 2022, the calculation of vehicle diminution in value shall be performed as follows:

1- The market value of the vehicle as of the accident date is determined by taking the average of the amounts in the comprehensive insurance vehicle valuation list.

2- The vehicle's usage level coefficient for automobiles is determined according to the table below.

3- The coefficient for damaged parts is determined according to the table below.

4 – The total diminution in value is calculated by multiplying the vehicle's market value by the coefficients determined according to the tables above, the fair value coefficient, and the general value coefficient.

What Should Be Done First in Case of Vehicle Diminution in Value?

1- Prepare an accident report with the driver of the vehicle you collided with. If the other party is unwilling to prepare an accident report, call the police to have the accident officially recorded. 2- Have your vehicle repaired and obtain the invoice for the amount paid. 3- Apply to a lawyer specializing in diminution in value claims with the accident report, service invoice, photographs of the accident scene, and a copy of the vehicle registration.

What is the Attorney's Fee for Vehicle Diminution in Value?

In such cases, an upfront fee is generally not requested; instead, it is agreed that a certain percentage of the recovered amount will be paid as attorney's fees. The determined percentage typically ranges between 20% and 25%.

The recovery of vehicle diminution in value involves legal processes that require the fulfillment of specific formal requirements and are subject to statutory time limits. Therefore, to avoid loss of rights, we recommend seeking professional legal assistance from a lawyer specializing in vehicle diminution in value. From the section below regarding vehicle diminution in value

Av. Mehmet Yücesoy

İzmir Attorney & Legal Consultancy