A new era begins in traffic insurance: December 5th is the deadline

The practice that allowed mandatory traffic insurance to remain valid for 15 days after the sale of a vehicle will end on December 5th. From this date onward, the 15-day validity period for traffic insurance will no longer apply to vehicle transactions.

The Constitutional Court (AYM) ruled that certain provisions of the Road Traffic Law, which allowed insurance companies to cancel the insurance contract within 15 days after being notified of the situation and stated that the insurance would remain valid for 15 days after cancellation, were unconstitutional. The ruling was made following an objection from the Adana 4th Consumer Court, and the provisions were annulled.

This decision was published in the Official Gazette on March 5, 2024, with the annulled provisions set to come into effect 9 months later, on December 5th.

In its reasoned decision, the Constitutional Court pointed out the unfairness of the 15-day coverage period, where accidents involving sold or transferred vehicles were registered under the former owner’s insurance, leading to claims and additional premium payments from the previous vehicle owner.

Vehicle buyers cannot drive without insurance: Before this decision, notaries would process transactions based on the current insurance policy, regardless of the vehicle’s new owner. This practice resulted in thousands of vehicles being uninsured for the first 15 days after purchase, causing accidents and significant losses.

With the implementation of the Constitutional Court’s ruling on December 5th, vehicle buyers will no longer be able to drive without insurance, thus reducing the number of uninsured vehicles. The new system is expected to positively impact the insurance sector by reducing the risk of uninsured traffic and preventing unfair situations for previous owners.

Expectations for the Ministry to make regulations: According to information from the Turkish Insurance Association (TSB), the Ministry of the Interior and the General Directorate of Security are expected to introduce regulations to address the gaps resulting from the Constitutional Court’s ruling. These regulations are anticipated to decrease the rate of uninsured vehicles and lead to new premium entries in the sector. Insurance agents will not be required to perform any additional procedures apart from canceling the previous policy after a vehicle sale. Citizens can obtain their vehicle registration and drive safely once their insurance policy is finalized. If they choose not to take the registration, the policy can be canceled within a few days.