COMPREHENSIVE CAR INSURANCE AND SALVAGE VALUE
Kasko) is an optional type of insurance. This insurance covers damages to a motor vehicle in traffic, whether the vehicle is in motion or stationary, resulting from unforeseen events beyond the insurer's control, such as theft, fire, or damage from a traffic accident.
Comprehensive car insurance protects the insured against these dangerous situations.
There are important differences between comprehensive car insurance and mandatory traffic insurance regulated by the Highway Traffic Law. While comprehensive car insurance is optional, mandatory traffic insurance is compulsory and only covers damages to the other party and third parties.
Factors considered when determining the amount of comprehensive car insurance include the vehicle's make and model, current mileage, the insured's location, the driver's record, and whether they have received any traffic fines.
Comprehensive car insurance guarantees coverage for material damages to the vehicle in traffic accidents and for the driver's medical expenses in case of injury. In addition, in the event of the driver's death or disability as a result of a traffic accident, comprehensive car insurance provides compensation within the predetermined limits. Comprehensive car insurance is not only effective in cases of accidents while the vehicle is in motion, but also covers damages caused by collisions while the vehicle is parked. Comprehensive
car insurance does not only aim to cover damages resulting from traffic accidents; it also covers theft, fire, or any other damage to the vehicle without the owner's knowledge or consent. Furthermore, individuals can add coverage beyond the situations listed in their comprehensive insurance policies. Examples include: damage to the vehicle due to an earthquake or volcanic eruption, damage during a strike or civil unrest, or loss of value due to damage in an accident.
Standard comprehensive car insurance policies are generally valid for situations such as damage to the vehicle occurring within the borders of Turkey. If the policyholder wants their comprehensive car insurance to be valid in case of damage to the vehicle due to incidents occurring abroad, they need to purchase a different type of insurance than the standard comprehensive insurance.
Since April 1, 2013, insurance companies have been offering comprehensive car insurance through four different policies:
1 – Limited Comprehensive Insurance
, 2 – Comprehensive Insurance,
Extended
, 4 – Full Comprehensive
Insurance. The value of the comprehensive insurance is determined monthly by the Turkish Insurance and Reinsurance Companies Association (TSB), taking into account the current market value of the vehicle's make and model.
Another important point to know about comprehensive car insurance is the age of the vehicle. While this may vary from insurance company to insurance company, it is generally the case that comprehensive insurance is available for vehicles up to fifteen years old.
SALVAGE VALUE:
Salvage refers to the sale of a damaged vehicle. The owner's consent is required for this sale. In this sale, either the amount of compensation the insurance company is required to pay decreases, or a portion of the compensation is provided as salvage value. This reduces the insurance company's losses and expenses.
The determination and calculation of the salvage value is provided by the experts and salvage companies contracted by the insurance companies themselves.
Salvage generally has two benefits. Firstly, it allows for the recycling of vehicle parts; secondly, the revenue generated from salvage helps to pay for a portion of the vehicle's damage.
Salvage is generally applied in comprehensive insurance policies and for vehicles used for transportation.
The salvage process works as follows:
– When a vehicle is involved in an accident and has a comprehensive insurance policy, an expert first conducts an inspection and assesses the extent of the damage.
– The expert prepares an appraisal report for the vehicle. If the report determines that the vehicle is a total loss, its market value is determined.
– Compensation equal to the market value is paid to the vehicle owner.
– The insurance company paying the compensation may face losses due to the amount of compensation, and therefore may exercise its right to salvage.
In summary, this situation can be explained as follows: If a vehicle insured with comprehensive insurance is involved in a traffic accident, the vehicle is declared a total loss through an expert report. Then, the current value of the vehicle and its salvage value are determined. When determining the amount the insurance company will pay to the insured, the current value (market value) of the vehicle is subtracted from its salvage value, and the resulting amount is paid to the insurer by the insurance company. This is because the insurance company cannot profit from the salvage of the vehicle.
TAYYIP TASKAN/HUSEIN DOGAN
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