TRAFFIC ACCIDENTS AND VEHICLE VALUE

The Impact of Traffic Accidents on Vehicle Value, the Post-Accident Vehicle Depreciation Claim Process, and Insurance Companies' Approaches to Depreciation Claims

Traffic accidents are one of the biggest concerns for vehicle owners because they negatively affect not only the physical condition of vehicles but also their market value. From a legal perspective, the impact of traffic accidents on vehicle value can vary depending on the extent of the damage, the age and make of the vehicle. When a vehicle is involved in an accident, no matter how well the repairs are done, the vehicle cannot be fully restored to its original condition, and this reduces its value in the used car market. Vehicles with an accident history become less attractive to potential buyers, which lowers the resale price. The depreciation of a vehicle can vary depending on the quality of the repairs after the accident, the originality of the parts used, and the professionalism of the repair. Therefore, the process of claiming vehicle depreciation after an accident becomes important.

The process of claiming compensation for depreciation in vehicle value after an accident consists of a series of legal steps that vehicle owners must follow to compensate for their economic losses. The first step is to obtain an expert report immediately after the accident. This report objectively evaluates the vehicle's condition before and after the accident and calculates the resulting depreciation in value. This report forms the basis of the application to the insurance company. According to the Turkish Code of Obligations, compensation for the damage suffered by the injured party is fundamental, and vehicle depreciation is considered within this scope. The vehicle owner must apply to the insurance company for compensation for depreciation. The application must include documents such as the accident report, repair invoices, and the expert report. The insurance company reviews these documents, evaluates the claim, and if deemed appropriate, pays the vehicle owner compensation for the depreciation. However, insurance companies do not always accept these claims and may sometimes put forward various reasons for not paying compensation for depreciation. In this case, the vehicle owner can seek their rights through legal means. The process of claiming compensation for depreciation can be time-consuming and complex, but a successful outcome can be achieved by following the correct steps.

Insurance companies' approaches to depreciation compensation can vary from company to company. Some insurance companies pay vehicle depreciation claims more quickly and easily after an accident, while others may be stricter and more demanding. According to the Turkish Commercial Code, insurance contracts must be interpreted to protect the insured. In this context, insurance companies consider factors such as the age of the vehicle, its mileage, the extent of the damage, and the quality of the repair when evaluating depreciation claims. The newer the vehicle and the greater the damage, the higher the likelihood of receiving depreciation compensation. However, some insurance companies may use various strategies to avoid paying depreciation compensation. For example, they may reject the claim by arguing that the damage was minor or that the repair was done very well. In such cases, the vehicle owner may need to seek legal support to defend their rights. Insurance companies' approaches to depreciation also depend on the policy terms. If there is a specific clause regarding depreciation compensation in the policy, this can affect the claim process and its outcomes. Paying attention to such details when signing an insurance policy can help prevent future problems.

If a vehicle owner receives a negative response from their insurance company regarding compensation for the decrease in value after an accident, they can apply to the Insurance Arbitration Commission or file a lawsuit directly in court. The Insurance Arbitration Commission plays a crucial role in resolving insurance disputes and offers a quick and effective solution to protect the rights of vehicle owners. If a lawsuit is filed in court, the general provisions of the Turkish Code of Obligations regarding compensation for damages apply, and the court makes a decision after evaluating expert reports and other evidence.

In conclusion, traffic accidents can have a significant impact on vehicle value, leading to substantial financial losses for vehicle owners. The process of claiming compensation for vehicle depreciation after an accident is a crucial step in recovering these losses. Obtaining an expert report, applying to the insurance company, and submitting the necessary documents are fundamental elements of this process. Insurance companies' approaches to depreciation claims can vary depending on several factors and may require legal support in some cases. Vehicle owners can increase their chances of receiving depreciation compensation by carefully reviewing their insurance policies and following the correct steps after an accident. This process can be time-consuming and complex, but with the right information and support, it can be managed successfully. The importance of regular maintenance and repairs should also not be overlooked in minimizing the impact of traffic accidents on vehicle value. By paying attention to these issues, vehicle owners can minimize their financial losses and protect the value of their vehicles.

Let's examine a Supreme Court decision on this matter:

17th Civil Chamber, Case No. 2016/7272 E., Decision No. 2017/867 K.

"Case Law Text"

COURT: Commercial Court

-DECISION-

...In the lawsuit petition, the plaintiff's attorney stated in summary that the defendant ... crashed into their parked vehicle, that the defendant was 100% at fault, that the accident caused approximately 20,000.00 TL worth of damage to their client's vehicle, and that the vehicle suffered a decrease in value due to repairs. They stated that, reserving their rights to claim further amounts, they are currently requesting 2,500.00 TL for the decrease in value, that they were forced to use a rental vehicle with license plate ... for 35 days, that they paid 2,065.00 TL as rental fee, and therefore suffered a direct material loss of 2,065.00 TL as a result of the accident. Consequently, they are only requesting 2,500.00 TL from the defendant insurance company for the decrease in value of the vehicle. In conclusion, they have filed a lawsuit reserving their rights and claims for further amounts.

…1- The information and documents in the file, and the evidence relied upon in the reasoning of the court decision, should be discussed, in the evaluation Since there is no procedural or legal irregularity, the other appeals of the plaintiff's attorney, excluding those covered in the following paragraph, must be rejected.
2- The lawsuit stems from a traffic accident in the vehicle occurred value loss And vehicle This relates to the rental fee claim.
The plaintiff's claim for monetary compensation in the lawsuit petition in the vehicle formed value loss And vehicle It relates to the rental fee.
The expert report on which the judgment was based determined whether the vehicle's repair was economically feasible and whether it should be written off as a total loss without evaluation It was stated that the vehicle in question was 11 years old in the vehicle value loss It has been determined that it will not occur.

…CONCLUSION: For the reasons explained in paragraph 1 above, the appellant's other appeals are rejected; the appellant's appeals explained in paragraph 2 are accepted, and the judgment is REVERSED; the advance court fee shall be returned to the appellant upon request. This decision was made unanimously on February 1, 2017.

Law Student Intern

Behiye Zeynep Ozturk