What is diminished value?
When a vehicle damaged in a traffic accident is repaired, its second-hand market value may still fall because of its accident record. Under Turkish law this loss can be claimed under the compulsory traffic insurance of the party at fault.
Diminished value is separate from the cost of repair. The fact that the vehicle has been repaired does not by itself eliminate the claim.
Main factors
- Age, mileage and pre-accident market value of the vehicle
- Nature of the damage and the parts affected
- How the vehicle was repaired (replaced and painted parts)
- Previous damage records
General procedure
- Collecting the accident report, expert report and damage documents
- Determining the diminished value based on age, mileage, damage and repair records
- Written application to the insurance company
- If no result is obtained, applying to the Insurance Arbitration Commission or the courts
Points to consider: The claim is subject to a limitation period. The fault ratio directly affects the amount. Each file is assessed on its own documents, so the accident and expert reports should be kept complete.
The information on this page is for general information purposes only and does not constitute legal advice. Each matter must be assessed on its own facts.