Has someone damaged your car or stolen it? If so, the car insurance company will disburse you a similar insured amount for your vehicle. Therefore, the amount is termed as the IDV of your car insurance. The vehicle insurance premium will be estimated in terms of IDV. Keep reading to understand IDV, things to consider while IDV calculation, and many more.
What is Insured Declared Value (IDV)?
"IDV" implies the maximum claim amount your car insurer will spend. It will happen only when your car gets stolen or harmed, exceeding repair. Now, consider your car's market worth Rs. 8 lakhs while purchasing the policy. Per the rules, your insurer will indemnify this highest amount of Rs. 8 lakhs.
Things to consider during the Calculation of IDV in Car Insurance
You must consider the below-mentioned factors while estimating the IDV of your car:
Subtracting the depreciation value from the real market worth. It will show the car's value. Calculating IDV is the highest compensation amount that you will get after a theft case.
Precise IDV estimation might result in a minimal premium.
Lower your car's IDV to minimise the premium. It will result in disputed or nominal claims.
An accurate declaration of IDV would signify a legit claim.
Prior to acknowledging the IDV settlement by your vehicle insurance provider, conduct your research.
Assess the cost of car insurance premiums. After that, make sure the calculation is correct in terms of the IDV of your car.
It includes a hefty amount of cash you should obtain.
Sufficient coverage and content with the IDV. You might also bargain for the coveted IDV.
Calculate the premium using the IDV while renewing your vehicle insurance policy.
In case there's a higher market value in contrast to IDV, you will disburse a higher premium over a vehicle, which costs minimal.
Role of IDV according to the car insurance type you purchase
Two types of vehicle insurance policies are available in the market. Therefore, IDV value differs depending on the car insurance policy type you buy.
Comprehensive Car Insurance Policy
It offers complete coverage for self-damage along with third-party. It also offers damage coverage stemming from natural or artificial calamities. A comprehensive vehicle insurance policy's premium is calculated based on IDV and other variables. The insurance company's proclaimed worth declines over time due to the vehicle's deterioration. The rate of depreciation is greater depending on the car.
Third-party Car Insurance Policy
It offers protection from all legal obligations resulting from harm, loss, or fatality to a third party or their property. Such a car insurance policy doesn't offer coverage in case something happens to your car. IRDAI has fixed the third-party premium cost. Also, it differs from one car to another based on its model and manufacturer. Because of this, a third-party insurance policy does not consider the idea of IDV.
Buy Car Insurance Online from Park+
Buying car insurance in India is a significant commitment. Here, IDV is a crucial consideration when choosing a policy. If you want to buy car insurance, visiting Park+ is important! You will learn more about car insurance policies and IDV information on Park+. So, download the Park+ app now, or you may also head to the Park+ website.