How to Calculate the IDV for My Car Insurance?
When it comes to car insurance, an IDV calculator is a must-have tool since it helps policyholders figure out how much money they will receive in the event of a total loss.
The manufacturer-set retail price is the starting point for determining IDV, with the component depreciation factored in. Below is the formula to calculate the true insured declared value:
Depreciation Value = (Company's Listed Price - Insured Declared Value) + (Cost of vehicle accessories - the depreciation value of these parts)
In the event of total loss or damage, the insurer will pay no more than the agreed-upon IDV. Please note that payment will be made only in the event of a total loss or theft of the covered vehicle within the policy period.
Considerations before Calculating a Car�s IDV
If you want to get an accurate estimate of your car's IDV, you need to think about the things on this list:
Depreciation is subtracted from the current market price to determine your car's worth. In any case, this is the most money you can get if your automobile is stolen or written off completely.
If your car's IDV is accurately estimated, you could save money on your insurance.
Don't lower your car's IDV to save money on insurance. Doing so could lead to fewer claims or claims being contested.
Verify that the premium you've been charged is reasonable in light of the IDV used to calculate it.
When it is time to renew your car insurance, ensure the rate is calculated using the IDV. Your premium could be significantly higher than that of someone whose vehicle has a lower market value than its IDV.
The process for updating your vehicle's IDV online varies by insurance. Make sure you take advantage of the ability to revise your automobile's IDV when the time comes for renewal.
Conclusion
To get the most out of your car insurance policy, you need to set the right IDV. But many individuals who are novices to car insurance get confused and don't know if the IDV should be low or high. The answer is neither! The IDV on your car insurance cover shouldn't be too low or too high. The key is to know what your car's worth in the market at present. Use this number as a starting point when figuring out the IDV for your car insurance coverage. Download the Park+app, your one-stop solution to all car insurance-related queries. Park+ offers car owners numerous other services, including parking assistance, tracking (not paying off) traffic challans, FASTag recharge, car trading, etc. You can check the IDV of your vehicle before getting car insurance in an instant.