Vehicle Depreciation in Motor Insurance
Understand why vehicle age and depreciation matter in motor insurance calculations.
Understanding vehicle depreciation
- Consider the vehicle age and applicable depreciation schedule.
- Apply the rate or rule relevant to the vehicle and policy.
- Verify the result against the current policy wording or insurer requirements.
About this workflow
Depreciation is used in motor insurance workflows to represent reduction in value over time. The applicable rate or schedule depends on the product and policy rules.
Related resources
Frequently asked questions
What does this guide cover?
Understand why vehicle age and depreciation matter in motor insurance calculations.
Where should the depreciation result be verified?
Verify it against the current product rules, insurer requirements and policy documentation.
Should the result be verified?
Yes. Verify the result against the current product rules, insurer requirements and source document where applicable.