Buy Car Insurance Online
Get Comprehensive Coverage with Digit Car Insurance
Happy Couple Standing Beside Car
Chat with an expert

I agree to the  Terms & Conditions

Don’t have Reg num?
It's a brand new Car

Continue with


(Incl 18% GST)

How Does the Age of Car Affect Car Insurance Premiums?

How Does the Car Age Influence Insurance Premiums?

How Is the Age of Car Calculated?

How Is Car Insurance Premium Calculated Based on Its Age?

How to Calculate the Depreciation of a Car?

Depreciation of a car is calculated based on the following table of rates set by the Insurance Regulatory and Development Authority of India (IRDAI):

Age of Car

% Depreciation for Calculating IDV

6 months and less


6 months to 1 year


1 to 2 years


2 to 3 years


3 to 4 years


4 to 5 years


IDV of a vehicle which is beyond 5 years of age is determined through a mutual agreement between the insured and insurer. Similarly, the IDV of an old car is calculated based on surveys done by car dealers and the like, analysing the vehicle's condition.  

The question is- how does the age of a car affect car insurance premiums? Involves important information such as – no matter what age your vehicle is, you would require a minimum auto insurance coverage. Moreover, coverages which are optional for both used and new vehicles, may aid in your potential financial trouble given accidents occur.

FAQs About How Does the Age of Car Affect Car Insurance Premium