What is an insurance agent? How does it work?
March 26, 2026
Compulsory traffic insurance covers damages, within the limits specified in the insurance policy and valid as of the date of the accident, in cases where a motor vehicle causes injury or death to third parties. Under the Highway Traffic Law, the compensation that third parties can claim from the insured party who has compulsory traffic insurance is limited.
The damages covered by compulsory traffic insurance are limited to the material losses that may arise in cases of direct damage to the property of third parties, injury, or death. Furthermore, the vehicle must have been in motion at the time the damage occurred. The vehicle moving on its own (e.g., leaving it parked on a slope without engaging the handbrake) does not negate liability for the accident.
Compulsory traffic insurance coverage valid within the borders of Turkey includes:
Material Damage Coverage: Covers the decrease in value of the damaged vehicle.
Medical Expenses Coverage: Covers all treatment costs incurred to restore the health of a person lost in a traffic accident. Following subsequent changes, this coverage is also considered under the responsibility of the Social Security Institution (SGK).
Disability Coverage: This covers financial losses that may arise due to permanent disabilities sustained by third parties after an accident. Disability assessment is based on a report issued by a medical board.
Death Coverage: This covers compensation paid to relatives of the deceased in the event of their death as a result of an accident, resulting in the loss of the deceased’s support.
Claims for moral damages, claims for compensation beyond the insured’s responsibility, and claims for compensation related to losses incurred by third parties are outside the scope of mandatory traffic insurance coverage.
Do Mandatory Traffic Insurance Coverages Vary Depending on Vehicle Type?
The Undersecretariat of the Treasury has clearly explained the changes it has made regarding coverage. The coverages specified by the Undersecretariat of the Treasury may vary depending on specific situations and vehicles. Vehicles used for transporting people, such as cars, minibuses, buses, and similar vehicles, are evaluated separately.
Trucks, vans, and similar motor vehicles used for transporting goods, trailers used for transporting people or cargo, construction machinery, and agricultural vehicles are categorized by the Undersecretariat of the Treasury with their coverage limits. Different assessments are made depending on the extent of the damage.
Traffic insurance coverage can change annually. Furthermore, insurance companies are obligated to adhere to the traffic insurance policies they issue. Following changes in compulsory motor vehicle liability insurance, different policies have emerged. If, due to an error, insurance companies make an incorrect assessment and issue an incorrect policy, the vehicle owner will not suffer any harm. The issued compulsory traffic insurance policy is considered valid when certain conditions and requirements are met according to the vehicle owner’s coverage.
What are the situations not included in compulsory traffic insurance coverage?
Damages that may occur from vehicles not in operation
Compensation claims of the operator
Compensation claims for damages to the property of the operator’s close relatives such as spouse, child, and siblings
Damages to items in the trailer of the vehicle, excluding luggage and belongings of those involved in the accident
Claims for moral damages
Claims that operators may make for persons held responsible for their actions under the Highway Traffic Law
Damages occurring to the vehicle during maintenance, purchase/sale, repair, and modifications
Accidents and damages that may occur when the vehicle participates in races, whether authorized or not
Damages resulting from the use of vehicles in terrorist acts. Also, the vehicle owner continuing to use the vehicle knowing it was involved in these acts.
Claims for damages due to indirect causes and road conditions are also not covered by traffic insurance.
What is No-Claim Discount and Increased Premium Application?
Traffic insurance policies include a no-claim discount application. No-claims discounts and premium increases are applied primarily through a tiered system within the framework of general terms and conditions.
No-claims discounts are not applicable to individuals who have never owned a vehicle before. Newly purchased vehicles, whether new or used, are also ineligible. Those who do not purchase a new vehicle within 730 days of selling their old vehicle are not eligible for a no-claims discount. For a vehicle to benefit from a no-claims discount, tiers are applied to the premium rates for each policy year the traffic insurance remains in effect. This increases the premium discount rates, making the insurance policy more affordable.
If compensation has been paid when damage occurred, the premium rates for each damage increase by one step with renewals after the traffic insurance calculation. Premium discounts and increased premiums are applied differently depending on the registered owner whose name is listed in the policy.
If the owner of the vehicle changes during the policy period, the policy automatically terminates 10 days after the date of the change. The insurance coverage allows the new owner to benefit from it until the date of termination without needing to take any action. Insurance companies take into account the total premium days up to the date of the change of registration and refund this excess until the policyholder takes it into account.
If the registered owner is entitled to a no-claims discount and transfers the vehicle to someone else, the contract is terminated. The vehicle owner can reapply for a new insurance contract within 2 years of the termination date to become the registered owner of another vehicle of the same type. The discount rights continue when a new insurance application is created. For operators, after a two-year period, the non-discounted premium tier applied to first-time vehicle owners will be applied.
If individuals in the same situation transfer their vehicle to someone else and request a new insurance policy as the registered owner of a different vehicle type, the same discounts will be applied to the insurance contract issued for that person as if they were first-time vehicle owners. These discounts are applied as tiered premiums.
If a premium increase is deemed appropriate due to damage, or if the registered owner transfers their vehicle to someone else or requests new insurance as the operator of a newly acquired vehicle of any type, the premium increase tier continues from where it left off, regardless of the time elapsed.
What Happens If Compulsory Traffic Insurance Is Not Obtained?
Obtaining traffic insurance is mandatory under the law. Insurance is also required when you want to carry out any official transaction related to your vehicle. Traffic insurance is also checked during inspections and purchase/sale transactions. If you obtain your insurance late, you will pay a late fee equal to the duration of the delay. These penalties, paid at different rates each month, can reach up to 50%. It’s also crucial to remember that mandatory traffic insurance requires regular renewal, and you should always renew your insurance before it expires.
