The “Insured Declared Value” (IDV) is the maximum insurance amount set by the insurer for a stolen or wholly lost vehicle, which equals the car’s current market value, excluding registration and insurance costs. IDV is calculated as the manufacturer’s documented selling price minus depreciation. For non-factory accessories, IDV is calculated separately with an additional cost.
How Is IDV For Car Insurance Calculated?
One of the most valuable calculators for car insurance is the IDV calculator, which enables drivers to calculate how much they will be compensated if their insured vehicle is completely damaged or stolen.
The manufacturer’s chosen selling price is the basis for calculating IDV; depreciation on the vehicle’s components is subtracted from this amount. The following formula can be used to determine the actual insured declared value:
Insured Declared Value = (Company’s listed price – the depreciation value) + (Cost of vehicle accessories – the depreciation value of these parts)
For a new car with additional accessories added after purchase, the IDV is determined using the formula mentioned above. If your car is equipped without any of these accessories, calculating the IDV is easy. Using the online IDV calculator, you can quickly determine your car’s insured declared value. And the following formula is enclosed:
IDV = Manufacturer’s registered price – the value of depreciation
If the value of your car or IDV is set at INR 5 lakh at the time of policy purchase, the insurer will pay up to INR 5 lakh as the maximum amount in the event of total loss or damage. It is crucial to understand that you will only receive reimbursement in the event of a constructive total loss or if the vehicle is stolen within the duration of the policy.
Things To Consider When Determining A Car’s IDV
Make sure you carefully consider the points listed below when determining your car’s IDV.
- Your car’s value is calculated by subtracting the market price from the depreciation value. It represents the most money you could receive if your car is completely lost or stolen.
- If your IDV is valued correctly, your car insurance premium may be lower. ##
- Don’t lower your car’s IDV to save money on the premium because doing so could result in fewer or contested car insurance claim processes.
- A proper IDV declaration would imply a legitimate claim.
- Make sure you do your homework or verify with the manufacturer before accepting the IDV your car insurance online provider set.
- Additionally, evaluate the premium cost and confirm that it has been accurately calculated using the IDV of your vehicle.
- Since it involves a significant amount of money, it is crucial that you obtain sufficient coverage and are happy with the insured declared value. Additionally, you can bargain to get the ideal IDV.
- Make sure the IDV is used to calculate the premium cost during Bajaj Allianz car insurance renewal. In comparison to a car that costs less, you would pay an outrageous premium if the market value of your car is much higher than the IDV.
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Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.