This is the reduction in a vehicle’s value caused by age, mileage, use, and technical condition.
Vehicle depreciation is the decrease in a car’s value caused by age, mileage, use, and technical condition. In insurance, it helps determine what the vehicle or a damaged part was realistically worth before the insured event.
In simple terms, a new car, a five-year-old car, and a high-mileage car are not valued in the same way. Even careful driving does not stop a vehicle from gradually losing part of its value.
Assessment usually looks at several factors:
The year of manufacture alone is not enough. Two cars of the same age may be in very different condition if one was serviced regularly and the other was used without proper care.
Depreciation may be used when calculating:
For example, if a car is insured under KASKO, the policy terms may explain whether depreciation is considered for repairs, parts replacement, or cash compensation. This is worth checking before buying the policy, not only after a claim.
Depreciation builds up gradually. Damage comes from a specific event: a road accident, impact, fire, hail, or another insured event.
For example, a worn interior, aging suspension, and high mileage are signs of depreciation. A broken headlight after a crash is damage. During claim handling, the insurer usually separates the condition that existed before the event from the harm caused by the event itself.
If the product terms require depreciation to be considered, the final amount may differ from the price of a new part or a new vehicle. This is especially relevant for older cars, high mileage, and repairs involving expensive components.
The key point is that the calculation depends on the contract, insurance program, and assessment. Depreciation should not be assumed to reduce every payout in the same way.
Before arranging motor insurance, it is useful to clarify:
The clearer these points are at the start, the fewer disputes there are after an insured event.
Aziz insured a car with 145,000 km on the odometer. After a road accident, the front of the car was damaged. The assessor looks not only at the new accident damage, but also at the car’s condition before the accident: age, mileage, previous repairs, and wear of parts.
As a result, the calculation is not made as if the car were new. It is based on the real condition of that specific vehicle. This is why depreciation directly affects expectations around repair, payment, and valuation.
Dilshod drives a 2016 car. After a crash, he expected the repair calculation to be close to the cost for a nearly new vehicle.
The assessor considers accident damage separately from age, mileage, and prior condition. Depreciation helps determine the real value of the car and its parts before the event.
Shahnoza is selling a car with 180,000 km on the odometer. The car works well, but buyers offer less than for a similar low-mileage model.
This is depreciation in practice: even without an accident, mileage and use reduce market value. In insurance, this factor may also matter during valuation.
After a serious accident, repairing Bekzod’s car turned out to be too expensive. The question became how to calculate the vehicle’s value and salvage.
In a total loss case, assessment looks at the car’s condition before the event and what remains after it. Depreciation helps avoid confusing a new car price with the real value of the specific vehicle.
This is a road incident in which harm was caused to people, vehicles, roads, structures, or other property.
This is a simplified procedure for recording a traffic accident without calling traffic police, when the drivers themselves document the circumstances for insurance settlement.
KASKO is insurance that protects not someone else’s car, but your own. Put very simply, it is like a financial safety cushion for your vehicle: if there is an accident, a broken window, parking damage, a fallen tree, or even theft, the insurance company can take on part of the big expenses. The main idea is simple: KASKO helps you avoid facing major car-related costs alone.
Motor third-party liability is your responsibility to other people if, because of your actions on the road, their car, property, health, or life is harmed. Put simply, it is a rule for situations where a driving mistake leads to someone else’s loss. The main idea is simple: this responsibility exists so that the injured party is not left without compensation, and the driver at fault does not have to handle everything alone out of pocket.
Insurance for a car loan is protection connected not just with the car itself, but with buying that car on credit. Put very simply, the bank gives money for the vehicle and wants to be sure that both the car and the repayment process remain protected. That is why insurance often comes together with a car loan: it helps reduce risks both for the bank and for the borrower if something serious happens to the car.
This is a modular car insurance product in which the vehicle owner chooses which parts of the car and which risks to insure.
Our experts will help you choose the best insurance coverage
English