Those insurance rates are according to the used values, not the other way round. Plus those western insurances use a lot of other factors as well. If only insurance was causing hard depreciation, there wouldnt just be less depreciation for some cars and more for others. Also many countries like India don't got the mandatory insurance issues, and still cars depreciate hard.
The simple fact is these econoboxes are nothing special and those used ones are always a risk to own. It's only worth the risk if it's cheap. Someone just told me how he sold his 2009 altis 250k driven for 19 lakh and bought that 3 years ago at 100k Kms for 12 lakhs. Proves how used car prices have gotten especially insane since the past few years. Also funny how people say new cars have gotten more expensive and used cars should appreciate accordingly, while in the same time those used craps have gotten even older and more abused, how the hell should it be appreciating like new cars? Absolutely senseless.
