Short answer
Loss of value (değer kaybı) is the drop in a repaired vehicle’s second-hand market value caused by the accident. Loss-of-use compensation (araç mahrumiyet bedeli) covers the inability to use the vehicle during repairs.
Loss of value is, as a rule, covered by compulsory traffic insurance, except for vehicles declared a total loss or scrapped. According to the Turkish Court of Cassation, loss of use is indirect damage outside traffic insurance cover. It is therefore, as a rule, claimed from the driver and the vehicle operator at fault. In both claims, fault, evidence and time limits are assessed separately.
1. Comparison of loss of value and loss-of-use compensation
| Criterion | Loss of value | Loss-of-use compensation |
|---|---|---|
| What does it cover? | The fall in market value after repair | Inability to use the vehicle during repairs |
| Compulsory traffic insurance | As a rule covered; excluding vehicles taken off the road or scrapped due to damage (Highway Traffic Law, Art. 92/1-l) | Indirect damage according to the Court of Cassation; not covered |
| Basis of calculation | Second-hand market value before the accident and after repair | A reasonable repair period; costs saved are deducted |
| Against whom? | Insurer, vehicle operator and driver | As a rule operator and driver; any optional liability (İMM) or comprehensive (kasko) policy is examined separately |
2. Loss of value
Even after repair, a vehicle involved in an accident may sell for a lower price on the second-hand market. This difference may be claimed as loss of value. In the calculation, features such as make, model, age, mileage, and the location and nature of the damage are assessed by an expert.
The exclusions from compulsory liability insurance include “claims for loss of value of vehicles that have been taken off the road or scrapped due to damage” (Art. 92/1-l). Claims corresponding to the claimant’s own fault are also excluded (Art. 92/1-g).
3. Loss-of-use compensation
Court of Cassation, 4th Civil Chamber, 29.09.2022, Docket 2022/26464, Decision 2022/11237: The Chamber held that for a loss-of-use claim, the vehicle need not be commercial; merely being deprived of its use is also a recoverable loss. The same decision stated that this damage is indirect and falls outside traffic insurance cover. Where no evidence is submitted, the court should set a fair amount under Article 50/2 of the Code of Obligations.
Court of Cassation, 4th Civil Chamber, 23.06.2025, Docket 2024/7796, Decision 2025/9820: The decision noted that a reasonable repair period determined according to the nature of the damage should be used. It also noted that necessary costs such as fuel, which would have been incurred anyway, should be deducted from the calculation.
The time the vehicle actually spent at the workshop is not always decisive. The absence of a car rental invoice does not by itself defeat the claim. Where the claimant is at fault, compensation may be reduced (Code of Obligations, Art. 52).
4. Against whom may the claim be made?
- Compulsory traffic insurance: As a rule liable for loss of value within the policy limit. As a rule, it does not cover loss of use.
- Vehicle operator and driver: Liable according to fault. The operator is liable for the driver’s fault as if it were its own (Highway Traffic Law, Art. 85/5).
- Optional liability insurance and comprehensive insurance: Which losses an optional liability (İMM) policy or a comprehensive (kasko) policy covers must be examined separately according to the policy terms. Not every loss is automatically covered by insurance.
Loss-of-use and loss-of-value are covered in more detail in separate guides on the site.
5. Application, preconditions and time limits
- Application to the insurer: For claims within compulsory traffic insurance, a written application to the insurer is required before going to court. If the application is not answered within fifteen days, or the answer does not meet the claim, a lawsuit may be filed or arbitration sought (Art. 97).
- Mediation: If the dispute is a commercial case, a mediation precondition may apply before filing a lawsuit (Turkish Commercial Code, Art. 5/A). This should be assessed according to the party against whom the claim is made.
- Limitation: For material damage, two years from learning of the damage and the person liable, and in any case ten years from the accident. If the act constitutes a crime and the criminal limitation period is longer, that period applies (Art. 109).
6. Checklist
- Accident report or police report and the fault assessment
- Expert report, repair invoice, workshop entry and exit documents
- Photographs before and after repair
- Any car rental or transport costs
- The other vehicle’s traffic insurance and any optional liability policy details
- Your written application to the insurer and its response
7. Hypothetical examples
Hypothetical example 1: C’s car is repaired after an accident in which C was not at fault. C applies in writing to the other vehicle’s traffic insurer for loss of value. For the days C was without the car during repairs, C makes a separate claim against the driver and operator at fault.
Hypothetical example 2: D’s car is declared a total loss. Since loss-of-value claims for vehicles taken off the road or scrapped are excluded from traffic insurance, D’s claim is assessed within a different legal framework.
These examples are not based on real persons or files; the outcome depends on the specific circumstances.
8. Frequently asked questions
Can loss of value and loss of use be claimed together?
They are different losses and may be claimed separately if the conditions are met. The party liable and the scope may differ.
Does traffic insurance pay for loss of use?
According to the Court of Cassation, loss of use is indirect damage and falls outside traffic insurance cover.
My car was a total loss; can I claim loss of value?
Loss-of-value claims for vehicles taken off the road or scrapped due to damage are excluded from compulsory traffic insurance.
How soon must I apply after an accident?
Material damage claims become time-barred two years after learning of the damage and the person liable, and in any case ten years after the accident.
What if I was partly at fault?
The portion corresponding to your own fault is excluded from insurance cover, and compensation may be reduced in proportion to your fault.
9. Sources
- Highway Traffic Law No. 2918: Arts. 85, 92, 97, 109
- Turkish Code of Obligations No. 6098 (Turkish): Arts. 50, 52
- Turkish Commercial Code No. 6102: Art. 5/A
- Court of Cassation, 4th Civil Chamber, 29.09.2022, Docket 2022/26464, Decision 2022/11237
- Court of Cassation, 4th Civil Chamber, 23.06.2025, Docket 2024/7796, Decision 2025/9820
- Decisions can be searched by reference on the Court of Cassation decision search system (Turkish).
This article provides general information and does not replace a review of the specific facts and documents. Current legislation and case-specific circumstances require separate assessment.