Your car
Premium estimate
The IRDAI depreciation schedule
Section 6 of the Indian Motor Tariff. This is the rule book your insurer is required to follow:
| Age band | Depreciation off ex-showroom |
|---|---|
| 0 – 6 months | 5% |
| 6 months – 1 year | 15% |
| 1 – 2 years | 20% |
| 2 – 3 years | 30% |
| 3 – 4 years | 40% |
| 4 – 5 years | 50% |
| 5+ years | "Mutually agreed" (typical 60-75%) |
IDV formula: ex-showroom price × (1 − depreciation factor for age band).
Insurers may negotiate ±10-15% from this number. If your renewal portal quotes more than 10% below the schedule value, ask them to match. Most will — they were just hoping you wouldn't notice.
Frequently asked
What is IDV in car insurance?
Insured Declared Value — the maximum amount your insurer will pay if your car is totalled, stolen, or damaged beyond repair. Higher IDV = higher premium AND higher claim payout. Lower IDV = lower premium but you eat the loss if something serious happens. See our full explainer at /explain/what-is-idv-in-car-insurance.
How does this calculator compute IDV?
Strictly per the IRDAI depreciation schedule (Section 6, Indian Motor Tariff). For cars under 5 years old, IDV = ex-showroom price × (1 − depreciation factor for the age band). For cars over 5 years, the schedule says "mutually agreed" — we use 60% off as a conservative default and let you adjust upward.
Why does my insurer quote a lower IDV than this?
Insurers have a 10-15% wiggle room around the schedule. Lower IDV = lower premium for them to advertise (looks competitive online), and lower payout for them if you claim. If your renewal IDV is ≥10% below this calculator's number, ask the insurer to match the IRDAI schedule — they usually will. Documentation: search "IRDAI Motor Insurance Tariff Section 6".
How accurate is the premium estimate?
Indicative. Real comprehensive premium = (own-damage rate × IDV) + third-party premium + add-ons. Own-damage rate varies 1.8% to 4.5% depending on car age, engine cc, city zone, and your NCB. The 2.5% midpoint default works for most 2-5 year old cars in metro zones with average NCB.
Can I increase or decrease my IDV?
Insurers typically allow ±10-15% from the standard schedule. Going higher pays out more in a claim but costs more upfront. Going lower saves on premium but you absorb the gap. For loan-financed cars, the bank may require IDV at or near the schedule value as collateral protection.
What about NCB (No Claim Bonus)?
NCB is a discount on the OWN-DAMAGE portion of your premium, NOT on IDV itself. Year 1 claim-free: 20% off. Year 2: 25%. Year 3: 35%. Year 4: 45%. Year 5+: 50%. One claim resets it to 0%. This calculator does not auto-apply NCB; subtract it manually from the premium estimate.