The formula used in vehicle depreciation calculation underwent a fundamental change with the Constitutional Court's decision dated 29/12/2022, numbered 2021/82 E., 2022/167 S. On this page we compare the old and new formulas and explain which parameters the current method is based on.
The annulled old formula
The formula used before the Constitutional Court decision was based on fixed parameters such as the vehicle's market value, period of use, mileage and damage condition. This formula took as its reference the standard market values set by the Insurance Association of Türkiye (TSB).
The biggest problem with the old formula was that the static TSB lists did not reflect current market values. Particularly in periods of high inflation, vehicle owners could receive compensation far below their actual depreciation.
Reason for Annulment
The Constitutional Court ruled that the fixed market values set by TSB do not reflect market reality and violate the right to property.
The Constitutional Court decision and its consequences
In its decision dated 29/12/2022, the Constitutional Court held that current market data must be used as the basis in vehicle depreciation calculation. The main basis of the decision was the protection of the right to property and the requirement that compensation cover actual loss.
After the decision, insurance companies became required to use actual market values in depreciation calculations instead of the static TSB lists.
Current formula
Depreciation = Pre-Accident Market Value − Post-Accident Market Value
The key difference of the new method is that the vehicle's actual, current market value is used as the basis instead of TSB's static lists. By reflecting existing market conditions, this approach produces supportive and more transparent results for vehicle valuation.
The main parameters affecting depreciation in the current formula are:
- The vehicle's current pre-accident market value
- The market value of the vehicle in its repaired post-accident state
- The nature of the damaged areas (chassis, bodywork, mechanical)
- Whether the parts used in the repair are original
- The vehicle's brand segment and market demand
The difference between the two formulas
| Criterion | Old Formula (Annulled) | Current Formula |
|---|---|---|
| Market value source | Static TSB lists | Current market data |
| Update frequency | Annual | Real-time |
| Market alignment | Low | High |
| Transparency | Limited | High |
| Parameters | Fixed | Variable + AI |
Variable parameters
The parameters used in the current formula are no longer fixed but are updated dynamically. This allows a personalized evaluation for each vehicle:
| Parameter | Evaluation |
|---|---|
| Make/model | Market liquidity and brand reliability |
| Model year | Depreciation rate that falls with age |
| Mileage | Effect of the km at the time of the accident on market value |
| Damage area | Chassis damage → high loss; bodywork → medium |
| Repair quality | Distinction between original and aftermarket parts |
Sample comparison
The example below compares the depreciation calculated with the old and new formulas for the same vehicle:
As can be seen, because the new formula is based on current market data, it produces higher and more realistic results in the vehicle owner's favor.
Calculate your depreciation with the current formula
Calculation with current market data, in line with Constitutional Court decision 2022/167.
Open the calculatorFrequently asked questions about the formula
What is the current vehicle depreciation formula?
After Constitutional Court decision 2022/167, the vehicle's current market value is used as the basis instead of the static TSB market value lists. Depreciation is based on the difference in market value before and after the damage.
What was the annulled TSB formula like?
The old formula was based on fixed parameters such as the vehicle's market value, period of use, mileage and damage condition. It took as its reference the standard market values set by TSB.
Why is the new formula fairer?
The new method reflects market conditions in real time. Because the static TSB lists did not reflect market reality, vehicle owners could be disadvantaged.
How is AI used in the new formula?
Tazminat.com analyzes current market data with machine learning models and estimates market value by taking into account actual second-hand sales data for similar vehicles.
Does the new formula apply to all insurance companies?
Yes. After the Constitutional Court decision, all insurance companies must use current market values in depreciation calculations. Otherwise, the vehicle owner may file a compensation lawsuit.