What is Vehicle Value Loss How Is It Calculated – Vehicles damaged as a result of a traffic accident are recorded as damaged vehicles in TRAMER records, even if they are repaired in a way that does not match the old ones. This causes the vehicle to lose value. So, let’s explain exactly what depreciation means and how you can minimize the financial loss after a traffic accident.
What is Vehicle Value Loss, How Does It Happen?
The decrease in the value of the vehicle in the second hand market due to operations such as repair or part replacement on the damaged vehicle as a result of an accident is called vehicle depreciation or damage depreciation. In other words, it means that the originality of the vehicle decreases and its value in the market decreases.
What is Vehicle Value Loss How Is It Calculated
Let’s explain the loss of value of the vehicle damaged after the accident in a simple way: Let’s think of two vehicles of the same make and model, with other features close to each other. Suppose one of these vehicles had an accident, this accident was recorded, and then an engine part was replaced. Even if the newly installed part is original, many people tend to buy a vehicle that has not been in an accident or repaired. Therefore, a vehicle that is damaged and its part is repaired or replaced loses value in the second hand market.
Moreover, even if your damage costs are paid in an accident where you are flawless, your vehicle will lose value. In such a case, the loss of value must be compensated in order to prevent victimization.
The party who is at fault in the accident or who is more at fault than the other party is the party that will cover the loss of value of the vehicle. In other words, if your defect rate is less or you have no fault in the accident, the other party covers the loss of value of your vehicle at the rate of your justification. If “How is the defect rate calculated?” If you are wondering, “How to Determine the Fault Rate in Accidents?” Check out our article.
Of course, it may be necessary to file a lawsuit against the other party in order to obtain the loss of value.
What is Vehicle Value Loss Litigation, What are its Conditions?
Even if the amount of damage to your vehicle is covered by the traffic insurance of the other party as a result of a traffic accident for which you are not at fault, your vehicle will be registered as an accident. What can you do to avoid being a victim in such a situation? It is possible to file a lawsuit against the other party for loss of value.
According to the Code of Obligations, in the case of loss of value brought against the person who caused the accident, it is expected that the right of the faultless or less faulty party will be proved. Then the vehicle depreciation of the right party is paid by the person at fault in the accident.
However, if it is stated in the TRAMER record that any action was taken on the part of your vehicle that was damaged during the accident, you cannot file a vehicle depreciation application.
How to Apply for Vehicle Depreciation?
You can sue the person who caused the loss of value by obtaining an appraisal report to claim the loss of value of the vehicle and to ensure that the damage is covered. If you have a problem with the insurance company regarding the payment of the loss of value, you can apply to the Insurance Arbitration Commission with the appraisal report showing the loss of value.
How Long is the Timeout in Value Loss Lawsuits?
The lawsuit must be filed within 2 years from the date of the accident with the petition regarding the loss of value of the vehicle. In other words, the statute of limitations in depreciation cases is 2 years. If this period elapses, the right to file a lawsuit ceases.
Does Motor Insurance Cover Vehicle Value Loss?
The loss of value of the perfect or less faulty party is covered by the traffic insurance of the other party. Of course, as a result of the accident, there may be major or minor damage to both parties. At this point, “Who covers the damage of the defective party?” you may be asking.
The relationship between automobile insurance and vehicle depreciation should be determined from the beginning. Generally, automobile insurance policies do not cover vehicle value losses due to repairs. However, some insurance companies also include vehicle depreciation coverage within the scope of automobile insurance. If the insurance policy of the wrong party includes loss of value coverage, the insurance company that the policy is issued covers the loss. If there is no such clause in the policy, the insurance does not cover the loss of value.