One of the most common objections insurers raise to diminished value claims is that the vehicle had already been damaged. The defence "the vehicle has a previous damage record, so no diminished value arises" is frequently encountered in practice.
Does previous damage eliminate diminished value entirely?
No. Previous damage does not automatically reduce the diminished value caused by the new accident to zero. With each new damage, the vehicle may suffer an additional drop in value on the second-hand market.
The General Conditions formula and annulment decisions
The calculation method annexed to the General Conditions of compulsory traffic insurance treated previous damage as a factor reducing diminished value. However, after the Constitutional Court's annulment decisions, the view that this method cannot be applied directly has been adopted in court and arbitration practice. Today, diminished value is determined according to the principle of actual loss.
What is examined in the specific case?
• Location of the previous damage: If the new damage is to a different part, diminished value generally arises separately.
• Second damage to the same part: If the part was previously repainted or repaired, the effect of the new accident may be more limited. This is assessed through an expert examination.
• Extent of the previous damage: A minor paint job and heavy structural damage do not have the same effect.
• How the previous damage was remedied: Was the part replaced or repaired?
Differing approaches
There are differing assessments among the regional courts of appeal regarding the effect of previous damage records on the calculation. The outcome therefore depends largely on the features of the specific case and the evidence submitted.
Importance of evidence
A detailed Tramer record, appraisal reports on the previous and new damage, and service invoices are important for determining diminished value correctly.
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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