Introduction
Electric cars are becoming common on Indian roads, but many owners don't realise their car insurance IDV isn't worked out quite like a petrol car's. The formula stays the same, yet battery value and higher purchase prices change the final figure. Here's how IDV works for both fuel types and what to check before you renew.
How Is IDV Calculated for Electric and Petrol Cars?
The calculation for both types of fuel IDV in car insurance is similar; it includes the price of the vehicle, including accessories, minus the depreciation. However, the formula remains the same, but the figures differ.
What Is the Basic Formula Used to Calculate Car IDV?
Take the ex-showroom price, add whatever accessories are fitted, then subtract depreciation based on the car's age. This is the same formula insurers apply whether you buy car insurance online or through a branch.
- Up to 6 months: 5% depreciation
- 6 months to 1 year: 15% depreciation
- 1 to 2 years: 20% depreciation
- 2 to 3 years: 30% depreciation
- 3 to 4 years: 40% depreciation
- 4 to 5 years: 50% depreciation
- Above 5 years: mutually agreed between owner and insurer
Which Depreciation Rates Are Used to Calculate Car IDV?
IDV in insurance stays age-based, and the slabs are the same whether the car runs on petrol or electricity. A two-year-old car loses 20% of its ex-showroom value either way.
Pro Tip
Check which depreciation slab your car falls into before renewal. Even a small shift can move your IDV and your premium along with it.
Why Does the Vehicle's Fuel Type Affect Its IDV?
Make, model, variant, and fuel type all play into a car's market value. EVs can carry a higher ex-showroom price than similar petrol models, which pushes their starting IDV up too.
Read More: Understanding Annual Depreciation Through an IDV Calculator
Why Can Electric Car IDV Differ From Petrol Car IDV?
The formula does not change between fuel types, but the IDV in insurance figures usually does. Battery cost and higher listed prices are why EV IDVs often start higher.
Does a Higher Listed Price Mean a Higher Starting IDV?
Yes. A higher ex-showroom price means a higher starting IDV for any car. Your car insurance company applies this higher value right from the start, and depreciation chips away at it every year after.
Does the Battery Value Affect the IDV of an Electric Car?
Yes, though not directly. The battery pack makes up a large share of an EV's cost, and that's baked into IDV in insurance without showing up as its own line item.
- Battery cost sits inside the ex-showroom price, which lifts the base IDV
- Battery wear over time is part of the car's overall depreciation
- Some insurers sell separate battery protection cover, apart from the standard IDV
Interesting Fact
In some EVs, the battery alone can make up close to 40% of the car's total cost. That's a big part of why electric cars often start with a noticeably higher IDV.
How Do Electric Car Repairs and Specialised Parts Influence Insurance Value?
EVs need trained technicians and often imported parts for repairs. Your car insurance company accounts for this at claim time, though the IDV itself was already fixed when the policy began.
Read More: IDV Calculator vs Market Resale Value: What Car Owners Should Know?
How Can Car Owners Compare IDV for Electric and Petrol Vehicles?
Comparing IDV in insurance across fuel types means looking past the price tag. The figures are determined by the depreciation slab, age, and accessories, irrespective of the performance of the vehicle.
What Factors Should Owners Check Before Comparing EV and Petrol Car IDV?
Before comparing two cars' IDVs, check what's actually feeding into the figure.
- Make, model and variant
- Vehicle age
- Applicable depreciation
- Registration location
- Accessories fitted
- Vehicle market value
Getting these right is what makes the comparison fair.
How Can an Owner Check the IDV of an Electric or Petrol Car Online?
Working it out by hand gets messy once accessories and depreciation are involved. An online calculator does it in a few steps.
- Visit Generali Central's IDV calculator page.
- Enter the car's make, model, and registration details.
- Add the manufacturing year and fuel type.
- View the calculated IDV instantly.
That gives you an accurate starting point before you buy car insurance online.
How Does the Chosen IDV Affect the Car Insurance Premium?
The IDV you settle on shapes both your premium and what you'd get paid out. A high IDV would lead to a high car insurance premium, whereas a low IDV would reduce the premiums but lower the payout.
- Higher IDV: higher premium, higher payout on total loss or theft
- Lower IDV: lower premium, lower payout on total loss or theft
- Appropriate IDV: balanced premium, fair, realistic coverage
Pro Tip
Don't set an unrealistically low IDV just to save on premium. It can leave you badly underinsured if something happens to the car.
Read More: Why Car Depreciation Changes IDV Calculator Results
Expert Note
This information is based on standard motor insurance guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) and commonly followed industry practices. Policy coverage and conditions may vary by insurer.
