Car insurance depreciation in India is calculated in different ways. Knowing car insurance depreciation costs will help you create a budget for your car insurance expenses.
About car insurance depreciation
Car insurance depreciation is related to the Insured’s Declared Value (IDV) of your car. The Insured’s Declared Value is worked out by adding the listed price of any equipments with the listed selling price of the vehicle (fixed by manufacturer) and subtracting the depreciation for each year according to the schedule furnished by the Indian Motor Tariff.
The IDV or Insured’s Declared Value determines the percentage of car insurance depreciation of your vehicle. Given below is a schedule of car insurance depreciation for Insured’s Declared Value for a two wheeler or four wheeler:
| Age Depreciation | Percentage (%) |
| Not more than 6 months | Nil |
| More than 6 months but not more than 1 year | 10 |
| More than 1 year but not more than 2 years | 15 |
| More than 2 years but not more than 3 years | 25 |
| More than 3 years but not more than 4 years | 30 |
| More than 4 years but not more than 5 years | 35 |
| More than 5 years but not more than 10 years | 45 |
| More than 10 years | 50 |
Given below is a schedule of car insurance depreciation for IDV (Insured’s Declared Value) for outdated models of private vehicles and motorized two wheelers:
| Age Depreciation | Percentage (%) |
| Not more than 6 months | 5 |
| More than 6 months but not more than 1 year | 15 |
| More than 1 year but not more than 2 years | 20 |
| More than 2 years but not more than 3 years | 30 |
| More than 3 years but not more than 4 years | 35 |
| More than 4 years but not more than 5 years | 40 |
| More than 5 years but not 10 years | 50 |
| More than 10 years | 55 |