Your RTO details
RTO name
Contact No.
  • City & RTO
  • Car Brand
  • Car Model
  • Car Fuel Type
  • Car Variant
  • Registration Year
Looking for Car Insurance?
Get Car Insurance starting at only 2094/year #
Compare & Save upto 85%* on Car Insurance
  • Renew policy in 2 minutes*

  • 21+ Insurers to choose

  • 1.2Cr+ Vehicles Insured

    Other models
    Other variants
    Select your variant
    View all variants
      We don’t spam
      View Prices
      Please wait..
      By clicking on “View Prices”, you agree to our Privacy Policy & Terms of Use
      Get Updates on WhatsApp
      Select Make
      Select Model
      Fuel Type
      Select variant
      Registration year
      Registration month
      Save & update
      Please wait..
      Search with another car number?

      We have found best plans for you!! Our advisor will get in touch with you soon.

      Car Depreciation Calculator

      If you are looking to purchase a new car or planning to sell your existing one, it is important to know how depreciation affects its value. By using a car depreciation calculator, you can estimate the value of a car once it's in use and know how it may impact your car’s worth.

      Read more

      About Car Depreciation

      Car depreciation is the difference in the value of a car between the time it was purchased and when it is sold. In simple words, it is a decrease in the value of a car and its parts over time depending on several factors.

      Every car’s value depreciates with time due to natural wear and tear. This depreciation or regular wear and tear of your car not only impacts your insurance premium but your car’s Insured Declared Value as well.

      How to Use a Car Depreciation Calculator?

      Follow these steps to use a car depreciation calculator in three simple steps:

      Step 1: Enter the ex-showroom price of your car.

      Step 2: Select the car registration year from the dropdown.

      Step 3: Press the 'Calculate IDV' button.

      Based on the data provided, you will get the recommended IDV based on your car's age.

      Concept and Working of Car Depreciation Calculator

      Depreciation is the difference between how much you pay to buy a vehicle and the amount you get back after selling it. A car depreciation calculator is an online tool that can be used to calculate the car depreciation rate. A car depreciation calculator can help you in ascertaining the depreciation borne by your four-wheeler as per its age.

      You can use the car value depreciation calculator to know the worth of your car as well as ascertain its IDV that you will be paid on a total loss of your car. Even if you plan to sell your car, you can use this calculator to get a fair resale value.

      To calculate the depreciation of your car, you can use two different types of formulas:

      • Prime Cost Method for Calculating Car Depreciation

      Cost of Running the Car x (Days you owned÷ 365) x (100% ÷ Effective life in years) = Lost Value

      Under this method, the calculation of depreciation is based on the fixed percentage of its cost.

      • Diminishing Value Method for Calculating Car Depreciation

      Value of the Car when Purchased x (Days you owned ÷ 365) x (200% ÷ Effective life in years)

      Under this method, the calculation is based on the base value of the car.

      You can also simply use a car depreciation calculator to do the above-mentioned task with ease.

      Rate of Car Depreciation in India

      When an insurance company calculates a car’s IDV, they deduct the amount of depreciation sustained by the car over the years. This depreciation is calculated on the basis of depreciation rates as laid down by the Insurance Regulatory and Development Authority of India (IRDAI) as per the age of the car.

      The below table gives an overview of the rate of depreciation in India based on the age of the car and can be used to calculate the IDV of your car.

      Age of Car Rate of Depreciation
      0-6 months 5%
      6 months – 1 year 15%
      1 year – 2 years 20%
      2 years – 3 years 30%
      3 years – 4 years 40%
      4 years – 5 years 50%
      Above 5 years (for obsolete models) Mutually decided between the insurer and vehicle owner

      It is important to know that the car depreciation rate for particular car components varies. Check the following table to know the car components with their rate of depreciation-

      Car Components Rate of Depreciation
      For all rubber parts/ nylon parts/ plastic parts/ tyres and tubes/ batteries and airbags 50%
      Paintwork 50%
      Fiberglass components 30%
      Glass components Nil

      Factors Affecting Depreciation of a Car

      Several factors affect the value of a vehicle over time. They are as follows-

      • Age of the Car: The physical condition and mileage of a car are calculated with its age. The older the car means; the lesser the value of the car.
      • Fuel Efficiency: Fuel-efficient cars are cost-effective and have good resale value.
      • Model of the Car: Large luxury cars have more depreciation rate than smaller cars. It is because their parts/maintenance are usually more costly.
      • Maintenance: The more maintained a car is, the lower its depreciation value will be. If your vehicle has bodywork issues or a poor interior, you can expect a high depreciation charge.
      • Number of Owners: When it comes to calculating depreciation, the rule is that the fewer the owners, the better the value of the car.

      Ways to Minimize Car Depreciation

      There are many ways to minimize depreciation and get a higher IDV & resale value for your car. Here are a few tips that you can follow to reduce the depreciation of your car:

      1. Maintenance of Your Car: There are chances that you will receive a better resale value if your vehicle is in good shape. Do not forget to maintain a record of the servicing. Also, try to avoid modifications in the vehicle as it makes a car more difficult to sell.
      2. Buy a High Resale Car Model: Some cars hold their value better than others. Do deep research on the resale values of various four wheelers before you buy a new car. By this, you can avoid a car that has a higher car depreciation.

      Buy Zero Depreciation Cover: Buy the zero depreciation add-on cover under your car insurance policy as it repays you for the claim amount that gets deducted due to the depreciation of your vehicle.


      Explore add-ons for your car insurance

      Plans starting from @ ₹2,094/year*
      Car Insurance
      Zero Depreciation Car Insurance
      Car Insurance
      Compulsory Personal Accident Cover
      Car Insurance
      Bumper to Bumper Insurance
      Car Insurance
      NCB Protector Add-On Cover
      Car Insurance
      Bundled Policy
      Car Insurance
      Roadside Assistance Cover
      Car Insurance
      Return To Invoice
      Car Insurance
      Multi-Year Car Insurance
      Car Insurance
      Engine Protection Cover
      Car Insurance
      Personal Possessions Cover
      Car Insurance
      Voluntary Deductible in Car Insurance
      Car Insurance
      Key Replacement Cover
      Car Insurance
      Daily Allowance Cover
      Car Insurance
      Tyre Protector Cover
      Car Insurance
      Rim Damage Cover
      Car Insurance
      Car Accessories Cover

      Find similar car insurance quotes by body type

      Hatchback Sedan SUV MUV
      Save upto 85% on Car Insurance
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
       Why buy from policybazaar

      Car insurance articles

      • Recent Article
      • Popular Articles
      21 May 2024

      Get Faster Claim Settlement with Policybazaar Claim...

      Getting your car insurance claim settled is no longer a hassle

      Read more
      17 Apr 2024

      Understand the Nitty-Gritty of Car Insurance Policy...

      Have you recently purchased a car insurance policy for your new

      Read more
      22 Feb 2024

      IDV in Car Insurance

      In layman's terms, the IDV full form is the Insured Declared Value

      Read more
      31 Jan 2024

      Must-Have Car Insurance Addons for Brand New Cars

      Investing in a full-coverage car insurance policy is essential for

      Read more
      29 Jan 2024

      No Claim Bonus (NCB) in Car Insurance

      No Claim Bonus (NCB) is a reward given by an insurer to a

      Read more
      11 Aug 2021

      How to Check Car/Vehicle Insurance Status Online

      It doesn’t matter if you are an excellent driver or take your car out only once in a few months; your vehicle must

      Read more
      20 Jun 2019

      Getting Your Duplicate Car Insurance Policy is...

      Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your

      Read more
      20 Dec 2021

      How To Find Car Insurance Details By Registration Number

      Sometimes, you may face situations when you need car insurance or vehicle owner details but cannot readily access

      Read more
      03 Jun 2016

      How to Transfer Car Insurance Policy?

      An integral part of selling a car for both the buyer and the seller is ensuring a successful car insurance transfer

      Read more
      20 Jul 2017

      Comprehensive Insurance Vs Third Party Insurance

      Comprehensive car insurance offers protection to the insured car against third-party liabilities and own damages due

      Read more

      #Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc

      *Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.