How to Claim Vehicle Diminished Value Compensation After a Traffic Accident in Turkey: 2026 Updated Guide

Learn how to claim vehicle diminished value compensation after a traffic accident in Turkey in 2026, including insurance claims, fault, expert reports, calculation methods, arbitration and foreigners’ rights.

A vehicle can be professionally repaired after a traffic accident and still be worth significantly less than it was before the collision. Prospective buyers frequently consider accident history, repaired body panels, replaced components and insurance records when deciding how much they are willing to pay for a used vehicle.

The financial difference between the vehicle’s market value before the accident and its value after proper repairs is generally referred to as vehicle diminished value, or vehicle depreciation resulting from accident damage.

Under Turkish traffic and insurance law, a person whose vehicle loses market value because of an accident caused by another party may potentially claim compensation from the responsible vehicle’s compulsory traffic insurer, subject to the applicable legal conditions.

This area underwent important procedural changes in 2026. In particular, Turkey’s Insurance and Private Pension Regulation and Supervision Agency, SEDDK, changed the compulsory traffic insurance framework so that a separate application solely for diminished value is no longer required. SEDDK also standardized expert-report procedures covering vehicle damage and diminished value.

For foreign vehicle owners involved in accidents in Turkey, understanding these changes can be particularly important.

What Is Vehicle Diminished Value?

Vehicle diminished value is the reduction in a motor vehicle’s market value resulting from an accident and its repair history.

Consider a vehicle worth TRY 1,500,000 immediately before an accident.

Another driver causes a collision, damaging several body components. The vehicle is professionally repaired, and the insurer pays the repair costs.

However, because the vehicle now has a recorded accident and repaired components, buyers may only be willing to pay TRY 1,350,000 for it.

The owner has potentially suffered an additional economic loss even though the vehicle has been physically repaired.

That loss is conceptually different from the repair bill.

Is Vehicle Diminished Value Compensable in Turkey?

Potentially, yes.

Vehicle diminished value can constitute a form of property damage arising from a traffic accident.

Where another driver is legally responsible for the accident and the other requirements are satisfied, the injured vehicle owner may potentially seek compensation within the compulsory motor liability insurance framework.

The claim must nevertheless be evaluated according to the individual accident.

Relevant issues can include:

• fault;
• previous accident history;
• vehicle condition;
• damaged components;
• repair history;
• market value;
• mileage;
• age and characteristics of the vehicle; and
• relationship between the accident and claimed depreciation.

The existence of an accident does not automatically mean that every vehicle owner will receive the same amount.

What Changed for Diminished Value Claims in 2026?

This is one of the most important developments for vehicle owners.

On 12 June 2026, SEDDK announced amendments to the General Conditions of Compulsory Motor Liability Insurance.

SEDDK specifically stated that the requirement to make a separate application for diminished value compensation was removed. The reform forms part of a broader action plan intended to standardize diminished-value calculations and expert reports and accelerate compensation procedures.

This means older internet articles instructing accident victims to treat diminished value as an entirely separate insurance application may no longer accurately reflect the current 2026 procedure.

What Changed With Expert Reports on 1 July 2026?

Another important reform concerns insurance experts.

SEDDK’s Circular No. 2026/11 introduced standardized report templates for motor vehicle insurance experts.

The Circular provides that where an expert is appointed for vehicle damage under compulsory traffic insurance, the expert must also address the diminished value calculation using the prescribed liability-insurance expert report template.

The Circular entered into force on 1 July 2026.

This is particularly significant because it integrates the assessment of physical vehicle damage and accident-related diminution in value more closely within the claims process.

Who Can Claim Vehicle Diminished Value?

The person legally suffering the property loss may potentially pursue the claim.

In the ordinary case, this will be the owner of the damaged vehicle.

The claimant must generally establish that the accident caused a compensable reduction in the vehicle’s value and that another legally responsible party is liable for the relevant damage.

Foreign nationality does not, by itself, eliminate this right.

Accordingly, the claimant could potentially be:

A Turkish Vehicle Owner

A Foreign Resident in Turkey

A Foreign Investor

An Expatriate

A Foreign Tourist Driving Their Own Vehicle

The precise insurance and jurisdictional analysis may become more complex where a foreign-registered vehicle is involved.

Does the Claimant Need to Be Completely Without Fault?

Fault is highly important.

Compulsory traffic insurance operates within a liability framework.

If the other driver is entirely responsible for the accident, the diminished-value claim will generally be evaluated accordingly.

Where the claimant also contributed to the accident, the recoverable compensation may be reduced according to the legally relevant allocation of fault.

For example, a claimant assessed as having a degree of responsibility should not automatically expect the responsible insurer to pay the full diminished value.

Where fault percentages appear incorrect, they should be reviewed rather than simply accepted.

What Evidence Is Important for a Diminished Value Claim?

A strong diminished-value claim requires evidence concerning both the accident and the vehicle.

Important documents can include:

Accident Report

Police or Gendarmerie Records

Vehicle Registration

Insurance Information

Photographs of Accident Damage

Repair Records

Expert Report

Parts Replacement Records

Invoices

Mileage Information

Previous Accident Records

Vehicle Market Information

The claimant should preserve photographs taken before repairs begin whenever possible.

They can provide valuable evidence concerning the extent and location of accident damage.

How Is Vehicle Diminished Value Calculated?

There is no sensible way to determine every diminished-value claim by simply applying a fixed percentage to the repair invoice.

The economic effect of an accident depends on the characteristics of the vehicle and damage.

Factors that may influence the assessment include:

• market value;
• mileage;
• accident history;
• extent of damage;
• repaired components;
• replaced components;
• vehicle characteristics;
• previous repairs; and
• effect of the accident on the vehicle’s resale market.

The applicable insurance framework and expert assessment should therefore be examined in the individual case.

Is the Repair Cost the Same as Diminished Value?

No.

This distinction is fundamental.

Imagine that an accident causes TRY 150,000 in repair costs.

The insurer pays TRY 150,000 and the vehicle is fully repaired.

The vehicle may nevertheless be worth TRY 100,000 less on the second-hand market because buyers know it suffered substantial accident damage.

The first figure concerns repair costs.

The second concerns diminished market value.

Payment of repair costs does not automatically mean that every property loss arising from the accident has been resolved.

Can a Repaired Vehicle Still Have a Diminished Value Claim?

Yes, potentially.

In fact, the concept normally becomes relevant precisely because the vehicle has been repaired but remains less valuable in the market.

The question is not simply:

“Can the car be driven again?”

The more important economic question is:

“What would a reasonable buyer have paid for this vehicle before the accident, and what would the market pay for it after the accident and repairs?”

The difference may represent a real financial loss.

Does Mileage Affect the Claim?

Mileage can be relevant because it affects the vehicle’s existing market position and depreciation.

A low-mileage, relatively new vehicle may experience a substantial market reaction after serious accident repairs.

A much older, high-mileage vehicle with extensive prior accident history may present a different valuation situation.

However, mileage should not be considered in isolation.

The entire vehicle history and accident damage must be evaluated together.

Does the Age of the Vehicle Matter?

Potentially.

Age can influence market value and the economic impact of an accident.

A nearly new premium vehicle suffering major structural repairs may experience a significant resale-value reduction.

An older vehicle with previous extensive damage may be affected differently.

The appropriate question is the actual accident-related loss in market value rather than an assumption based only on the manufacturing year.

What If the Vehicle Had a Previous Accident?

A previous accident does not necessarily make every subsequent diminished-value claim impossible.

The key question is whether the new accident caused an additional compensable loss.

For example, if a vehicle previously had damage to one area but the new collision damages completely different components, the current accident may still create additional market depreciation.

The previous accident history should therefore be examined carefully rather than used automatically to reject the entire claim.

What If the Same Part Was Previously Damaged?

This can complicate the calculation.

Where the exact same component had already been seriously damaged and repaired, the insurer may dispute whether the later accident caused additional diminution in value for that component.

The previous repair records and current damage should be compared.

An expert assessment can become particularly important in such cases.

Can Luxury Vehicles Have Higher Diminished Value?

Potentially.

Accident history can have a substantial effect on the second-hand market value of luxury and premium vehicles.

Buyers of expensive vehicles may place considerable importance on whether body panels have been painted, repaired or replaced.

Accordingly, even where repairs are technically excellent, the commercial loss can remain significant.

The vehicle’s actual pre-accident market value and post-repair market position should be examined.

Can Electric Vehicles Claim Diminished Value?

Potentially, yes.

Electric vehicles are not automatically excluded from diminished-value compensation merely because they use a different powertrain.

However, accident damage involving battery systems, structural components, advanced electronics, sensors or manufacturer-specific components may create technically complex valuation questions.

An expert familiar with the relevant vehicle can therefore be important.

Can Foreigners Claim Diminished Value in Turkey?

Potentially, yes.

Foreign nationality does not itself prevent a claimant from pursuing compensation arising from a traffic accident in Turkey.

A foreign vehicle owner may therefore need to investigate diminished value where their vehicle was damaged because of another driver’s fault.

Cases involving foreign-registered vehicles can require additional analysis because the vehicle’s market value, registration country, insurance arrangements and repair history may involve evidence from outside Turkey.

Foreign documents may also require translation where they are submitted in formal proceedings.

Can a Foreign Tourist Continue the Claim After Leaving Turkey?

Potentially.

A foreign claimant does not necessarily need to remain physically in Turkey throughout the entire compensation process.

Before leaving Turkey, the claimant should obtain copies of:

• accident documentation;
• police records;
• photographs;
• repair documentation;
• insurance information; and
• expert records.

An appropriately authorized Turkish lawyer may potentially pursue subsequent insurance, arbitration or litigation procedures.

Who Pays Vehicle Diminished Value Compensation?

In the ordinary liability scenario, the compulsory traffic insurer of the responsible vehicle may be liable within the applicable insurance framework and limits.

Depending on the circumstances, additional liability against the responsible driver, vehicle operator or owner may also need to be considered.

The correct defendant or insurer should therefore be identified before proceedings are commenced.

What Is the Property Damage Insurance Limit in 2026?

For the principal vehicle categories, SEDDK’s official compulsory traffic insurance limits applicable between 1 January and 31 December 2026 provide property-damage coverage of:

TRY 400,000 per vehicle

and

TRY 800,000 per accident.

The same published per-vehicle property-damage limit applies across the vehicle groups listed in SEDDK’s 2026 table.

The limit is important because diminished value and other qualifying property damage can interact with the available property-damage coverage.

The policy limit should not be confused with the actual amount of the diminished-value claim.

What If Total Property Damage Exceeds the Insurance Limit?

The compulsory insurer’s coverage ceiling does not necessarily represent the maximum total liability arising from the accident.

Suppose a collision involving a high-value vehicle creates substantial repair costs and diminished value exceeding the available compulsory insurance coverage.

Potential additional liability of the responsible driver, operator, owner or other legally responsible persons may need to be investigated.

Additional insurance coverage may also exist.

Do I Need to Make a Separate Diminished Value Application in 2026?

Under the June 2026 reform, SEDDK expressly announced that the requirement for an additional separate application for diminished value compensation was removed.

This is one of the most important distinctions between current 2026 practice and older online guidance.

The purpose of the reform is to integrate diminished-value assessment into the traffic insurance damage process more effectively.

Foreign and Turkish claimants should therefore ensure that they follow the current procedure rather than copying claim methods described in outdated articles.

What Is the Role of the Insurance Expert?

The insurance expert can play a central role in determining vehicle damage and diminished value.

SEDDK’s 2026/11 Circular requires standardized motor vehicle insurance expert-report templates.

Where an expert is appointed for vehicle damage under compulsory traffic insurance, the report must also address the diminished-value calculation using the designated template.

This standardization aims to make assessments more consistent and reduce disputes.

However, an expert calculation does not necessarily prevent a claimant from challenging an amount considered incorrect.

What If the Insurance Company’s Diminished Value Calculation Is Too Low?

The calculation should be reviewed.

Possible reasons for an undervalued claim can include:

Incorrect Vehicle Market Value

Incomplete Damage Assessment

Incorrect Accident History

Incorrect Mileage

Failure to Consider Relevant Repairs

Incorrect Fault Allocation

Technical Calculation Errors

A claimant should obtain the underlying calculation rather than simply accepting the final number.

Where a material disagreement remains, further dispute-resolution mechanisms may be considered.

Can the Claim Be Taken to the Insurance Arbitration Commission?

Potentially, where the procedural and jurisdictional requirements are satisfied.

The Insurance Arbitration Commission is an important mechanism for resolving insurance disputes in Turkey.

Vehicle diminished-value disputes have been the subject of insurance arbitration proceedings, including published 2026 objection decisions concerning claims for repair damage and diminished value.

Whether arbitration is the appropriate route should be assessed according to the insurer, dispute and procedural history.

Can a Lawsuit Be Filed?

Potentially.

Where compensation cannot be resolved through the insurance process or another appropriate dispute-resolution mechanism, court proceedings may be available.

The appropriate defendants and court depend on the circumstances.

The claim may potentially involve the insurer and other legally responsible parties.

Procedural prerequisites should be checked before litigation.

Can the Claimant Receive Both Repair Costs and Diminished Value?

Potentially, yes, because they compensate conceptually different economic losses.

Repair costs address the expense required to restore the damaged vehicle.

Diminished value addresses the remaining reduction in market value caused by the vehicle’s accident history despite repair.

Receiving payment for repairs should therefore not automatically be interpreted as proof that no additional market-value loss exists.

What If the Insurance Company Says the Vehicle Is Too Old?

The insurer’s reasoning should be examined rather than accepted automatically.

Age is relevant to valuation, but the actual question is whether the accident caused an additional measurable loss in market value.

The vehicle’s pre-accident condition, previous history, market value and new damage should be evaluated together.

What If the Insurer Says the Mileage Is Too High?

Again, the entire calculation should be examined.

Mileage affects market value and may influence the amount of accident-related depreciation.

However, the legal issue is whether the collision caused additional economic loss.

The claimant should request the basis of any calculation or rejection.

What If the Other Driver Disputes Fault?

Evidence becomes particularly important.

Relevant material may include:

• accident report;
• CCTV;
• dashcam recordings;
• photographs;
• witnesses;
• police findings;
• road markings;
• vehicle damage patterns; and
• expert evidence.

An incorrect fault assessment can significantly reduce the compensation amount.

Should the Vehicle Be Sold Before the Claim Is Completed?

Selling the vehicle can complicate the evidence, although it does not necessarily answer every legal question automatically.

Where possible, important damage and repair evidence should be preserved before any sale.

The claimant should retain photographs, expert reports, invoices, repair records and relevant vehicle-history information.

If litigation or arbitration is contemplated, legal advice before disposing of the vehicle may be useful.

What Should Claimants Avoid Signing?

Accident victims should be cautious about signing:

Full Releases

Final Settlement Agreements

Waivers

Documents They Do Not Understand

Agreements Transferring Compensation Rights

A document presented as a routine payment form may contain provisions releasing additional claims.

Foreign claimants should obtain a translation or legal review before signing documents they do not fully understand.

What Other 2026 Insurance Developments Should Claimants Know?

The diminished-value reforms form part of broader changes to Turkey’s motor insurance claims system.

SEDDK issued Circular No. 2026/13 on 17 June 2026 concerning submission of beneficiaries’ contact numbers in compulsory traffic insurance compensation claims.

Further reforms followed in July 2026. SEDDK published Circular No. 2026/21 concerning the Alo 193 Insurance Claim Notification and Complaint Line and Circular No. 2026/22 concerning motor vehicle insurance damage applications through the Common Claim Notification Center.

These developments demonstrate that Turkey’s motor insurance claim infrastructure is undergoing significant procedural modernization in 2026.

Why Should a Diminished Value Claim Be Reviewed Professionally?

Vehicle diminished-value disputes can look simple but become technically complicated.

The claimant may need to establish:

Pre-Accident Market Value

Post-Accident Market Value

Accident Damage

Previous Damage

Fault

Insurance Coverage

Correct Expert Calculation

For high-value, luxury, commercial or foreign-registered vehicles, relatively small errors in the valuation methodology can materially affect the amount of compensation.

A proper claim should therefore be based on evidence and the current 2026 insurance framework.

Frequently Asked Questions About Vehicle Diminished Value Compensation

1. Can I claim diminished value after my vehicle has been repaired?

Potentially, yes. Diminished value concerns the remaining reduction in the vehicle’s market value after accident repairs rather than the physical repair cost itself.

2. Do I need a separate diminished value application in Turkey in 2026?

SEDDK’s June 2026 reform removed the requirement for an additional separate application specifically for diminished-value compensation within the updated traffic insurance framework.

3. What is the compulsory traffic insurance property-damage limit in 2026?

For the principal vehicle categories, SEDDK lists a 2026 property-damage limit of TRY 400,000 per vehicle and TRY 800,000 per accident.

4. Can a foreign vehicle owner claim diminished value in Turkey?

Potentially, yes. Foreign nationality does not itself prevent a property-damage claim, although foreign-registered vehicles can create additional valuation and documentation issues.

5. Can I claim diminished value if my vehicle had a previous accident?

Potentially. Previous accident history is relevant, but the important question is whether the new accident caused additional compensable depreciation.

6. Can I receive both repair compensation and diminished value?

Potentially, yes. Repair costs and diminished value compensate different forms of property loss.

7. What if the insurance company pays less than the actual diminished value?

The underlying expert assessment, market value, damage history, mileage and fault allocation should be reviewed. Depending on the circumstances, insurance arbitration or litigation may be considered.

8. Does high mileage automatically eliminate a diminished value claim?

Not necessarily. Mileage can affect the valuation, but the central question remains whether the accident caused an additional measurable reduction in market value.

9. Can I apply to the Insurance Arbitration Commission for diminished value?

Potentially, where the applicable procedural requirements are satisfied. Published 2026 Insurance Arbitration Commission decisions continue to address disputes involving vehicle damage and diminished-value compensation.

10. Can compensation exceed the compulsory insurer’s property-damage limit?

The insurer’s liability is subject to applicable policy limits, but the total legal liability arising from an accident may require consideration of claims against the responsible driver, vehicle owner, operator or other responsible parties.

Legal Support for Vehicle Diminished Value Claims in Turkey

A repaired vehicle may look exactly as it did before an accident while still suffering a substantial reduction in resale value.

For owners of new, premium, luxury or high-value vehicles, this difference can represent a significant financial loss.

Our law office provides professional legal assistance concerning vehicle diminished value compensation, traffic accident insurance claims, vehicle damage disputes, incorrect insurance calculations, Insurance Arbitration Commission proceedings and compensation litigation in Turkey.

Fırat Fesih Kaya assists Turkish and foreign vehicle owners with reviewing accident documentation, fault assessments, expert reports, insurance calculations and the legal options available where an insurer rejects or undervalues a diminished-value claim.

The 2026 amendments have materially changed the procedure for diminished-value claims. In particular, the separate-application requirement has been removed and standardized expert reporting has been introduced. For this reason, claimants should rely on the current rules rather than older claim procedures circulating online.

If your vehicle has lost market value following a traffic accident in Turkey, you may contact our law office for an individual assessment of the accident, fault allocation, insurance coverage, expert calculation and potential compensation.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No: 221, Yıldırım Tower No: 148, 06520 Balgat, Çankaya, Ankara, Turkey

For professional legal assistance concerning a vehicle diminished value compensation claim after a traffic accident in Turkey in 2026, you may contact our law office for a case-specific assessment of your insurance claim, expert report and available legal remedies.