Know About Cars

Car Insurance Depreciation

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Given below is a schedule of car insurance depreciation for IDV (Insured’s Declared Value) for outdated models of private vehicles and motorized two wheelers: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