Different Rates of Car Depreciation & How to Calculate IDV

What Is Car Depreciation?

What Are the Different Rates of Car Depreciation for IDV Calculation?

In India, we calculate a car's depreciation rate for IDV according to IRDAI’s fixed rate. 

The table below shows the rate of depreciation to derive the IDV of a car:

Age of the Car

Rate of Depreciation

< 6 months


>6 months but < 1 year


>1 year but < 2 years


>2 years but < 3 years


>3 years and <4 years


>4 years and <5 years


That's how to calculate car depreciation value!

Is the Percentage of Depreciation Same for a Car and Its Parts?

What Is the Depreciation Rate for Different Car Parts?

Calculation of car depreciation also takes into account the depreciation of different car parts. Given below are the rates of depreciation for different parts of a car -

Components of a Car

Rate of Depreciation

Fibreglass Components

Depreciation rate for all fibreglass components is 30%.

Glass Parts

There is no depreciation for glass parts.

Tyres and Tubes, Batteries and Air Bags, and Rubber/Nylon/Plastic Parts

IRDAI has a fixed depreciation rate of 50% for these parts.


Depreciation rate is charged at 50% of the material cost of the paint. However, when a consolidated amount is charged for this paintwork, then the cost of material is considered 25% of its total cost. Thereafter, depreciation at a rate of 50% is applied on it.

What Is the Formula to Calculate a Car’s Depreciation?

Why Is Calculation of Car Depreciation Necessary?

Frequently Asked Questions