ACCIDENTS & DIMINISHED VALUE
Or: How Your Car Loses Value Even After Looking Perfect Again
1 May 2026
Author: Av. Onur Puğ
LOST VALUES
Your car gets hit. You repair it. It comes back shiny. Clean. Probably prettier than before.
But try selling it. Suddenly everybody becomes a detective.
“Any paint?” “Changed parts?” “Front impact?” “Photos from the accident?”
Welcome to the Turkish second-hand car market.
In Türkiye, even a professionally repaired vehicle may lose market value simply because it now carries an accident history. Try explaining this to an American insurance adjuster sometimes.
What Is Vehicle Diminished Value?
Under Turkish law, diminished value basically means this:
the difference between your vehicle’s market value before the accident and its market value after repair. Even if the repair is technically perfect.
Turkish courts and insurance regulations already recognize this concept clearly.
So no, this is not a “creative lawyer theory.”
Who Pays?
Usually one or more of these parties: the driver who caused the accident
the vehicle owner/operator most importantly, the compulsory traffic insurance company In practice, claims are generally directed toward the insurance company first.
And yes, your cousin’s neighbor living in Belgium may insist “you can just call them later casually.” Please do not build your legal strategy around that sentence.
Time Limits Matter
Diminished value claims are subject to limitation periods.
Which means: waiting too long is a terrible strategy.
Especially under Turkish inflation conditions where delaying almost becomes its own form of damage. Insurance correspondence may interrupt certain periods.
But “we are still talking” is not a legal protection plan.
Insurance companies handle these files every single week. For most people, it happens once. Court or Arbitration?
Usually the process starts with a written application to the insurance company.
If the issue is not resolved: Insurance Arbitration Commission may issue decisions relatively quickly, Commercial courts may take considerably longer
Some files belong in arbitration. Some files absolutely belong in court.
That distinction matters. And yes, lawyers occasionally prefer litigation too.
Sometimes strategically.
Sometimes emotionally.
Sometimes financially.
We should all be honest adults here.
How Does the Process Work?
Very simplified version:
accident report
repair records
expert valuation
application
negotiation
possible arbitration or litigation
Reality is usually messier.
Much messier.
Is There a Formula?
Technically yes.
There are calculation systems, coefficients, damage categories, depreciation structures, market evaluations, and multiple variables.
If you enjoy complex equations, you may genuinely love this part.
Most people do not. Usually the realistic approach is:
either obtaining a preliminary legal estimate or getting a proper expert report
Required Documents
Generally:
accident report
expert report
vehicle registration
repair invoices
photos
insurance policy
power of attorney if represented
The better the documentation, the cleaner the process becomes.
Do You Need a Lawyer?
Legally?
No.
You may also remove your own tooth at home if you want.
Possible does not always mean wise. Insurance companies occasionally make surprisingly low settlement offers in unrepresented files. A serious loss may suddenly become a “quick small payment proposal.”
Naturally presented as a generous solution.
What Does the Lawyer Actually Do?
Manages the process.
Pushes the paperwork.
Fights over undervalued calculations.
Handles communication with insurers.
Obtains expert opinions.
Tracks deadlines.
Calculates additional damages.
Sometimes argues over rental loss, total loss differences, loss of use, commercial interruption damages, and related claims.
Mostly: takes the stress away from the client. That part matters more than people initially think.
How Much Can Be Claimed?
Depends on:
brand and model
mileage
vehicle age
market value
location of damage
painted or replaced parts
second-hand market conditions
Every file looks different.
And yes, Turkish buyers sometimes react dramatically to painted bumpers.
Additional Rights May Exist Too
Some accidents create more than diminished value claims.
Possible additional damages may include:
loss of use
rental vehicle costs
commercial losses
total loss disputes
repair period damages
Sometimes the biggest issue is not even the repair itself.
Final Note
A traffic accident is already stressful enough.
The legal side should not become a second collision afterward.
Most people only experience this process once.
Insurance companies experience it daily.
That difference alone changes everything.
About the Author
Av. Onur Puğ entered this field after personally experiencing severe traffic accidents and long disputes with insurance companies.
After enough arguments, reports, objections, negotiations, and court files, vehicle diminished value law quietly became one of his regular practice areas alongside company law and foreign client representation.
Possibly because winning helps.
Possibly because fighting insurance companies became strangely enjoyable.
Probably both.
