05.05.2025 10:00
As of 2025, a significant change is being implemented in the insurance sector. Insurance companies will no longer be able to declare damaged vehicles as total losses unless the repair cost does not exceed 60% of the vehicle's market value. This new regulation directly affects owners of insured vehicles and insurance companies.
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There is a significant change happening in the insurance sector. The Insurance and Private Pension Regulation and Supervision Authority (SEDDK) has made adjustments to the criteria for total loss.
Until now, even if the damage status of vehicles was at the level of 30-40%, insurance companies could declare the vehicles as total loss in some cases. Sometimes, the insured person would request the vehicle to be declared a total loss after the accident by saying, "I no longer want this vehicle," and the insurance company would accept this request. Although the decision on whether the vehicle will be declared a total loss is usually made by experts, agreements between the insurance company and the insured also played a role.
Vehicles declared as total loss are generally offered for sale through auction platforms that the insurance companies have agreements with. There are two main methods:
- Payment is made according to the damage on the vehicle, and the total loss vehicle is sold by the insurance company.
- Both the damage amount and the vehicle value are paid to the insured, the vehicle is transferred to the insurance company, and the sale is made.
Some insured individuals request that both the vehicle and the damage be left to them. In this case, a method called "transfer to the insured" comes into play, and different actors in the vehicle market become involved in the process.
WHAT DOES THE NEW REGULATION BRING?
With the new regulation made by the Insurance and Private Pension Regulation and Supervision Authority:
- If the repair cost does not exceed 60% of the market value of the vehicle, the vehicle cannot be declared a total loss.
- Unless critical parts such as the chassis, roof, airbag, and electronic systems are damaged, low-rate damages will not turn into total loss.
- Repair becomes mandatory for damages below 60%.
- This change concerns both insurance companies and vehicle owners closely. Insured individuals will no longer be able to easily declare their vehicles as total loss by saying "I don't want it" after an accident.
NOW EVERY DECISION WILL BE MADE BY EXPERTS
With the regulation, only experts will determine whether the damage to the vehicle is total or severe. The practice of declaring total loss based on agreements between the insurance company and the insured is coming to an end. In the case of total loss, a scrap registration certificate will be required, and in the case of severe damage, a withdrawal certificate from traffic will be required; payment will not be made without delivering these to the insurance company.
NO CHANGE IN SCRAP VEHICLE SALES, BUT...
The scrap sale method for total and severely damaged vehicles will remain the same. However, damaged vehicles outside this scope cannot be sold on auction platforms. This situation will negatively affect companies engaged in scrap vehicle trade.
WHEN DOES IT COME INTO EFFECT?
The new system will officially start to be implemented as of July 1, 2025. The goal is to make the total loss vehicle market more transparent, controlled, and auditable.
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