How to Calculate IDV of a Car or Bike: Step-by-Step With Examples

Key takeaways

Start from the ex-showroom price of your exact variant — not the on-road price.
Measure age on the policy start date, in months and days, to find the right slab.
Apply the slab’s depreciation, then add accessories and external kits at the same rate.
For vehicles over five years old there is no fixed rate; IDV is agreed with the insurer.

You don’t need an insurer’s website to know your IDV. With three facts — the ex-showroom price, the registration date and the policy start date — you can calculate it in a minute. Here is the method insurers use, step by step.

Step 1: Find the right ex-showroom price

Use the ex-showroom price of your exact make, model, variant and fuel type. The best source is your purchase invoice, where it appears before registration, road tax and insurance. If you bought the vehicle second-hand, use the price the same variant had when it was new; the insurer’s system usually holds this figure too.

Do not use the on-road price (it includes registration and road tax) or today’s price of a newer model year. Both will overstate the IDV.

Step 2: Work out the age on the policy start date

Count from the date of first registration (or purchase) to the date your new policy starts. The schedule uses “not exceeding” and “exceeding” language, so exact dates matter:

Exactly 6 months old → still in the first slab (5%).
6 months and 1 day → the next slab (15%).
Exactly 1 year → still 15%; one day more → 20%.

Step 3: Apply the depreciation slab

Age of vehicle	Depreciation for IDV	IDV as % of ex-showroom
Not exceeding 6 months	5%	95%
Exceeding 6 months but not exceeding 1 year	15%	85%
Exceeding 1 year but not exceeding 2 years	20%	80%
Exceeding 2 years but not exceeding 3 years	30%	70%
Exceeding 3 years but not exceeding 4 years	40%	60%
Exceeding 4 years but not exceeding 5 years	50%	50%
Above 5 years	Mutually agreed	Based on market value

Step 4: Add accessories and kits

If you fitted accessories after purchase — a music system, reverse camera, alloy wheels, seat covers — or an external CNG/LPG kit, add their invoice value less the same depreciation. They count only if you declare them to the insurer; an external CNG kit must also be endorsed on your RC.

Step 5: Adjust within the insurer’s band

The figure you now have is the schedule IDV. Most insurers let you choose a little higher or lower at renewal. Staying close to the schedule value keeps your cover realistic.

Four worked examples

1. New car, four months old

Ex-showroom ₹10,50,000, four months old when the new policy starts: 5% depreciation. IDV = ₹10,50,000 × 95% = ₹9,97,500.

2. Motorcycle, 1 year 8 months old

Ex-showroom ₹1,45,000: 20% depreciation. IDV = ₹1,45,000 × 80% = ₹1,16,000.

3. Car with an external CNG kit, 4 years 11 months old

Ex-showroom ₹6,10,000 and a ₹48,000 CNG kit fitted later and endorsed on the RC: 50% depreciation. Car ₹3,05,000 + kit ₹24,000 = ₹3,29,000.

4. Car, 6 years 3 months old

No schedule rate applies after five years. The insurer proposes an IDV based on the resale value of similar cars in similar condition, and you can negotiate it. Our calculator shows an indicative figure (here 60% depreciation) as a starting point, clearly marked as an estimate.

Skip the arithmetic — the calculator does all five steps and shows the working.

Car IDV Calculator

Vehicle age at policy start	IDV (% of ex-showroom)	On a ₹8 lakh car	On a ₹1 lakh bike
Up to 6 months	95%	₹7,60,000	₹95,000
6 months – 1 year	85%	₹6,80,000	₹85,000
1 – 2 years	80%	₹6,40,000	₹80,000
2 – 3 years	70%	₹5,60,000	₹70,000
3 – 4 years	60%	₹4,80,000	₹60,000
4 – 5 years	50%	₹4,00,000	₹50,000

Common mistakes

Using the on-road price. It includes registration and road tax, which are never part of IDV.
Rounding the age. “About two years” can be either the 20% or the 30% slab depending on the exact dates.
Forgetting declared accessories. If you paid extra premium to cover them, check they appear in the IDV.
Adding a factory-fitted CNG kit. It is already inside the ex-showroom price of a CNG variant.

FAQs

Which date counts — purchase or registration?

Insurers generally use the date of first registration or purchase recorded in their system. If the two are far apart, check which one your insurer uses because it can change the slab.

Why is my insurer’s IDV slightly different from my calculation?

The usual reasons are a different ex-showroom figure for your variant or city, a different age reference date, or an adjustment within the insurer’s allowed band.

Is GST included in the ex-showroom price?

Yes. The ex-showroom price includes GST and any cess on the vehicle; it excludes registration, road tax and insurance.

Sources

Age-wise depreciation schedule for fixing IDV in standard private car and two-wheeler policy wordings in India.
Insurer IDV determination notes on accessories and bi-fuel kits.