What is idv value: IDV (Insured Declared Value) is the maximum amount of a car that the insurance company pays the policy holder in the event of a car loss or theft. It is also called “insured declared price”. To understand the IDV, it is important to know how the price of the car is determined in the insurance policy and what things are included in it.
How is IDV decided?
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The determination of IDV is based on some main points:
Car current market price: The IDV of the car is first based on its current market price. This means that when the insurance policy is purchased, the insurance company evaluates the current price of the car. The determination of this value is based on the brand, model, version of the car, and its fitment (eg engine, design).
Price of new car: When you insure the new car, its IDV is close to the price of the new car, that is, the market price of the car at that time. As the car gets older, its IDV decreases, because over time the price of the car decreases.
Evaluation based on speed and use: The frequency of the use of the car, its distance and its status is also taken into consideration when determining the IDV. If your car is used more and its condition is bad, then its IDV will be reduced in the insurance policy.
Depression (price subtraction): The price of the car decreases every year. The insurance company determines the IDV keeping in mind the age of the car keeping in mind the depression. Generally, the IDV decreases as the car aging. For example:
There is no depression on the 0-6 month old car.
6 months to 1 year old car has 5% depression.
A 1-2 year old car contains 15% depression.
And in this way, depression increases with the age of the car.
Customization and Accessories: If the car has some custom accessories or modifications, such as new alloy wheels, sound system, or any other additional equipment installation, the insurance company can evaluate these changes and add it to the IDV. However, these accessories and customizations will be just in addition to the original IDV of the car, not part of the price of the entire car.
Importance of IDV (IDV Importance)
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Payment in the event of theft or loss: If your car is stolen or is completely damaged, the insurance company pays your car IDV. This means that you will get a payment of up to the price which has been fixed in the insurance policy.
Premium low on low IDV: If the IDV of your car is low, then your insurance premium will also be reduced. However, in this situation you will get a low amount in future. Therefore, you should keep in mind that fixing very little IDV can cause damage.
In case of repair: If any part of your car is in disadvantage, the insurance company decides the value of that part on the basis of your IDV to repair or replace that part.
Some things related to idv
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IDV and Insurance Premium: The higher the IDV, the higher the insurance premium. That is, if you keep the IDV of your car high, your premium expenses may increase. But the price of this increased premium is correct when you need more security.
IDV selection: The car owner can select the IDV of his car while taking an insurance policy, but it should be within some limits set by the insurance company. It is not possible to keep IDV more than the actual market price of the car.
Car decreasing price: As the age of the car increases, the IDV decreases. This is the reason that when the car is new at the beginning of the insurance policy, the IDV is high, and as the car gets older, its value decreases.
IDV is the value of your car, which the insurance company will provide you in case of accident, theft or loss. This value is based on car types, age, conditions and other factors. It is important to determine the IDV correctly, so that whenever you face an unexpected situation, you can be paid the real value of your car.
