A New Era in Vehicle Depreciation Compensation: Constitutional Court Annulment Decisions and the Market Value Basis

Even if the damage to a vehicle after a traffic accident is repaired, the difference between the vehicle's pre-accident resale value and its post-accident (damaged) value is called "vehicle depreciation ." Until recently, certain mathematical formulas favoring insurance companies were used to calculate this difference. However, successive annulment decisions by the Constitutional Court (AYM) fundamentally changed this calculation method, bringing back the principle of "actual damage."

1. The Situation Before the Constitutional Court: Compensation Trapped in Formulas

Previously, vehicle depreciation was calculated using mathematical formulas from the Highway Traffic Law (KTK) and the General Terms and Conditions of Compulsory Motor Vehicle Liability Insurance (ZMSS). These formulas considered limited data such as the vehicle's mileage, age, and parts value, but did not accurately reflect the vehicle's true market value decrease. This resulted in vehicle owners receiving less compensation than their actual losses.

2. Revolutionary Decisions of the Constitutional Court

The Constitutional Court, basing its decision on the right to property and the principle of equality, annulled certain phrases in Articles 90 and 92 of the Traffic Law.

• Key Point: The Constitutional Court ruled that the amount of compensation cannot be determined by administrative regulations (formulas) called "General Conditions"; compensation must be calculated according to the general principles of contract law, i.e., "full compensation" and "actual damage .

• Conclusion: The era of insurance companies underpaying by simply saying "that's how the formula calculates it" has legally come to an end.

3. Current Calculation Criterion: What is the Market Price?

Following the Constitutional Court's decisions, the established practice of the Court of Cassation and the Insurance Arbitration Commission is now "Market Price Comparison" method. The following criteria are used when making calculations according to this method:

1. Free Market Conditions: The difference between the resale value of the vehicle immediately before the accident and its resale value after the accident (in its damaged condition).

2. Vehicle Make and Model: The vehicle's desirability in the market.

3. Mileage and Age: Strict limits in the formulas (such as a 165,000 km limit) are no longer the sole obstacle; however, they are factors that affect the amount of depreciation.

4. Extent of Damage and Nature of Repair: Which parts of the vehicle were replaced (plastic, mechanical, etc.) and whether the repair was carried out at an authorized service center.

4. Insurance Company's Responsibility and Application Process

The party who is blameless or only slightly at fault in a traffic accident can apply to the at-fault party's Compulsory Financial Liability Insurance (Traffic Insurance) for compensation for the decrease in value of their vehicle .

• Statute of limitations: 2 years from the date of the accident

• Application Requirement: A written application to the relevant insurance company is mandatory before initiating litigation or arbitration. If the insurance company fails to respond within 15 days or rejects the request, proceedings may be initiated before the Insurance Arbitration Commission.

• Direct Liability: The insurance company is jointly and severally liable for the depreciation of the vehicle within the limits of the policy.

5. The Importance of the Expert Report

Whether the calculation is in line with market rates can only be determined through expert appraisers or independent insurance adjusters. Challenging the results obtained by insurance companies using their own software, by presenting technical reports containing market data, is part of the right to seek redress.

Conclusion

Vehicle depreciation is no longer the result of a mathematical formula, but a reflection of market realities. Following the Constitutional Court's annulment decisions, vehicle owners' right to claim "actual damages" has been strengthened. To avoid losing their rights, it is essential to ensure that the calculation is based on market value and that legal processes are managed accordingly.