Is high IDV important in car insurance?

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Is high IDV important in car insurance?

The IDV of your car is an extremely crucial aspect of buying a car insurance policy. Besides determining the maximum compensation amount for your car, it also plays a vital when it comes to the premium of your car insurance policy. The IDV is the key to the amount of premium that you will pay for your car insurance.

Should IDV be high or low?

At best, IDV is the maximum sum insured amount that the insurance company pledges to compensate for your loss. Getting an IDV that is close to the market value of your car is always the best bet. Decreasing the IDV value will result in lower premium but it also provides you with a lower coverage than is required.

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Can IDV be more than ex showroom price?

Yes, the IDV of your car may increase or decrease based on the ex-showroom price of your car.

Can we change IDV value?

“It can vary as the insurer lets you change it by plus or minus 15 per cent. So if the default IDV being offered is Rs 3 lakh, you can choose an IDV between Rs 2.55 lakh and Rs 3.45 lakh.” says Gupta.

Does IDV affect resale value?

Insured Declared Value (IDV) = IDV is highest when the vehicle is brand new. The older your car, lesser is the IDV and, lesser the resale value of the car. The highest sum of money an insurer will pay is decided after considering the IDV of the car.

Does IDV value decrease every year?

Insured Declared Value (IDV) means the maximum value for which your car is insured in case of total loss/theft in a particular year. This value normally decreases as the car depreciates over its lifespan. The insurance premium is calculated based on this value.

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What happens if IDV is less?

If the claim amount is less than 75\% of the IDV of your car, then you will have to bear the compulsory deductibles and depreciation of replaced car parts. Effectively, the IDV is the maximum amount you are liable to receive as claim payout under your motor insurance policy.

Does IDV reduce every year?

Can we increase IDV value next year?

Some insurance companies ask for a higher premium at the time of your policy renewal to increase the IDV of your vehicle. So, if your car is four-years-old and its value has depreciated from Rs. 8 lakhs to Rs. 5 lakhs, you can pay a higher premium and increase the IDV back to Rs.

What is cover value IDV?

What is Insured Declared Value (IDV)? The term ‘IDV’ refers to the maximum claim your insurer will pay if your vehicle is damaged beyond repair or is stolen. Suppose the market value of your car is Rs. 8 lakh when you buy the policy. That means the insurer will disburse a maximum amount of Rs.

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Why does IDV decrease every year?