There’s no denying that insurance contracts for motor vehicles are loaded with terminology and phrases that the vast majority of consumers struggle to comprehend. However, in order to have a positive experience with just about any insurer, it is essential for policyholders to have a comprehensive understanding of the policy they intend to purchase. This will allow policyholders to feel confident that they are picking the appropriate choice.
IDV stands for “individual driving risk,” which is likely a phrase that you are familiar with from either your two-wheeler or four-wheeler insurance policy. The IDV seems to be a very significant component of any automobile insurance policy because it influences not only the amount of the premium you owe but also the manner in which you handle claims. There are IDV calculator online for you to calculate the right value.
What exactly is IDV?
The acronym IDV stands for “Insured Declared Value,” and it refers to the maximum amount of money that an insurer is willing to pay out in the event that a car is stolen or completely lost. In a nutshell, the IDV refers to the current value that the market places on your car. It is often estimated at the beginning of the auto insurance policy based on the manufacturer’s listed sales price of the model as well as the type of the car (including additional equipment), which is then multiplied by a certain percentage.
After making the necessary adjustments for each year’s depreciation, it is then determined. In the event that your four-wheeler is either stolen or severely damaged to the point where it can no longer be repaired, the amount of your automobile insurance claim that really is payable will be decided based on the IDV. Because of this, having adequate insurance coverage for the IDV of your car is an absolute necessity. To accomplish the aforementioned goal, one should make use of a vehicle insurance calculator.
Noteworthy Factors to Consider When Determining the Insured Declared Value
- As the IDV value of a vehicle has a significant impact on the total amount that is guaranteed by insurance, it is imperative that the following points be double-checked before any calculations are made.
- The worth of the car is calculated by subtracting the value of the car’s depreciation from its real value.
- A proper IDV will result in a lower premium cost.
- Declare the correct IDV of the parts and components in order to have a claim that is valid.
- Be sure to double-check the IDV that was established by your vehicle insurance company prior to finalizing.
- The value of the premium should be linked directly with the IDV of the car that is determined.
- In the event of an accident, having an accurate valuation of your vehicle helps ensure that you receive your complete investment.
How to calculate IDV?
When calculating the IDV of a car, a number of different criteria are taken into consideration. Some of these considerations include the age of the vehicle, the version that you own, whether or not there are any additional extras, and so on. To generate an estimate of your vehicle’s IDV, however, you can apply the following simple formulas:
Without any accessories, IDV =Ex-showroom price of the vehicle – Depreciation.
With accessories, Initial Depreciation Value (IDV) = [Ex-showroom price of the vehicle – depreciation] + [price of accessories – depreciation]
Online IDV Calculator:
You may receive a close to precise estimation of the IDV of your car by using an online IDV calculator. To make use of this tool, all you need to do is log into the internet, navigate to our page on auto insurance, and enter some information about your own vehicle.
You can easily access such an IDV calculator online and know about the IDV for your car precisely.