New Delhi, Dec. 16 -- It is evident that a car doesn't hold its showroom value for long. The moment you drive it off the lot, its price starts to drop, a process known as car depreciation. This drop isn't random; it depends on factors such as how old the car is, how many kilometres it's been driven, its overall condition and how popular that model is in the market.

Depreciation also ties directly to motor insurance through the Insured Declared Value (IDV), the amount your insurer will pay if your car is stolen or completely damaged. So whether you're planning to sell your car, renew your car insurance policy, or calculate your ownership costs, understanding depreciation can help you make more informed financial choices.

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