Calculating parts depreciation for insurance claim?

[mrdeejay]

How is depreciation calculated on replacement parts in an insurance claim? Assuming depreciation is 10%/year. If I bought a brand new/zero-meter car in Aug 2021 and file an accident claim in June 2024. Would the depreciation be calculated as if 3 years have passed, so 30% or 4 years - i.e. 40% ?

[abid110]

if the car is manufactured in August 2021 then you are paying 30% dep in a claim in june 2024. this is seen by invoice date usually. its like increase 10% dep after every 12months. your car in june 2024 falls under 36 months bracket so 30%. 40% will apply when your car is in age bracket of 37-48months.

[mrdeejay]

so it depends on car manufacturing date not the date it was first sold on?

[chinyoti]

usually invoice date and month of sale are almost similar. for brand new cars date of insurance also matters.

0 to 6 months most companies offer 5% to 6%
6 to 12 Months 10%
13 to 24 Months 20%
and so on.

i paid 30% on my car repairs where the car was purchased in FEB 2022 , Althou it is 2 years old, But it falls in the 25 to 36 month category now.

[abid110]

depends on car manufacturing date not the date it was first sold on?

manufacturing date is used in case of insurance. its taken as invoice date. e.g a car can be manufactured in January but sold in March. so registration will be of march or later months but invoice will be of January. hope it clears out your confusion