What is the insured declared value or IDV?

The insured declared value (IDV) is the maximum insured sum determined by the insurer that is provided in the event of theft or total loss of the vehicle. Basically, IDV is the current market value of the vehicle. If the vehicle is totaled, IDV is the compensation that the insurer pays to the insured.

The IDV is calculated as the selling price given by the manufacturer, less depreciation. Registration and insurance fees are excluded from IDV. IDV for non-factory installed accessories will be charged separately for an additional fee if insurance is required.

IDV calculator

The IDV calculator is an online tool that determines the market value of your car and estimates the ideal premium amount you should pay for your car insurance. You take into account the age or depreciation of your vehicle to get the correct IDV for your car.

It is considered one of the most important auto insurance calculators, as it helps car owners determine how much they will be paid for any damage or theft in full.

HOW IS IDV CALCULATED?

The IDV is calculated on the basis of the sales price established by the manufacturer and the depreciation of the parts of your vehicle is deducted. The formula to calculate the value of the insurance actually declared is given below:

Declared insurance value = (The declared price of the company – Depreciation value) + (Cost of vehicle accessories – Depreciation value of those parts)

The above formula is to calculate the IDV for a new car equipped with additional accessories that were added after the car was purchased. If you don’t have such accessories in your vehicle, calculating IDV is easy. With the online IDV calculator, you can easily calculate the value of your declared insurance. And the formula is included below:

IDV = registered manufacturer price – the depreciation value

For example, if the value of your car or IDV is set to INR 5 lakh at the time of the policy purchase, the insurer will reimburse a maximum of INR 5 lakh in the event of loss or damage. It is imperative that you receive compensation only if there is an implicit loss or theft of the vehicle during the life of the policy.

Points to consider when calculating the IDV of a car

Be sure to consider the points below to carefully evaluate your vehicle’s IDV.

• The value of your car is calculated by subtracting the depreciation value from the actual market price. In any case, this is the maximum compensation you can get in the event of the total loss or theft of your car.
• A successful IDV assessment may cost you less
• To lower the premium, do not lower your car’s IDV as that means less claim or a controversial claim
• A good IDV statement would mean a legitimate claim
• Research or check with the manufacturer before accepting the IDV set by your auto insurer
• Also, evaluate the cost of the premium and verify that it has been valued correctly based on the IDV of your car
• It is important that you get adequate coverage and that you are satisfied with the value of the declared insurance as it costs a lot of money. You can also negotiate to get the IDV you want.
• When renewing your auto insurance, make sure the cost of the premium is determined based on the IDV. If the market value of your car is very high relative to the IDV, it would

mean a very high premium compared to a car that costs less.

You can also repair your car’s IDV online, but this varies from one insurer to another. You also have the option to personalize your IDV when you renew your car. So don’t miss your chance.