Under the 2026 regulations, diminished value is mostly paid together with the damage payment. However, the amount paid does not always cover the vehicle's actual diminished value. In that case the difference, that is the balance, can be claimed separately.
1. Document the amount paid
The insurer's payment letter usually shows the damage amount and diminished value as separate items. Keep the payment letter, the bank receipt and, if available, the loss adjuster's report.
2. Establish the actual loss
Data showing the difference between the vehicle's pre-accident market value and its post-repair value are important: comparable listings, an independent appraisal, repair invoices and the list of replaced parts.
3. Apply to the insurer in writing
Under Article 97 of the Highway Traffic Law, a written application must be made to the insurer before filing a lawsuit or going to arbitration. State clearly in the application the amount you consider to have been underpaid and the grounds for it. If the insurer does not respond or does not meet the claim within 15 days of the application, the next stage can be pursued.
4. Insurance Arbitration Commission or court
Insurance Arbitration Commission: This is the most frequently used route in insurance disputes. The application can be made online, there is no obligation to go to mediation, and the process is generally shorter than in court. The dispute is resolved by a specialist arbitrator, with an expert examination where necessary.
Court: A diminished value lawsuit against an insurer is a commercial case and is heard by the commercial court of first instance. Applying to mediation before filing the lawsuit is a precondition for the case.
If you signed a release
Having signed a release at the time of payment does not always prevent a claim for the balance. In the practice of the Court of Cassation, releases stating a specific amount are in many cases treated as a receipt for the amount paid. In addition, under Article 111 of the Highway Traffic Law, agreements made with the injured party can be annulled within two years where the compensation paid is clearly inadequate. This assessment is made according to the specific case.
Mind the time limit
Diminished value claims are subject to limitation periods. For details, see our article "Limitation for diminished value".
You can use the free Kaza Dosyam tool to keep your accident information in an organised file: kazadosyam.katarhukuk.com
This article is for general information only and does not constitute legal advice. Each specific case must be assessed in its own circumstances. Updated: 10 October 2026
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