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IDV Calculator For Car
An IDV calculator helps you quickly find your car’s current market value, whether you're buying, selling, or dealing with damage. It uses basic details like the car’s age, make, model, and depreciation to instantly estimate the Insured Declared Value, ensuring you know the right coverage and premium for your insurance.
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What is IDV in Car Insurance?
IDV in car insurance means Insured Declared Value, which is the amount your car is valued at in the current market. This value is important because it decides the maximum claim you can get if your car is stolen or totally damaged, and it also helps calculate your insurance premium. IDV is based on market value and reduces as the car ages due to depreciation.
A higher IDV means you’ll pay a higher premium, but it guarantees greater compensation if your vehicle is lost or stolen. On the other hand, a lower IDV reduces your premium, but the small savings can result in a significant financial setback during a major loss or theft. Choosing the right IDV is crucial to balancing cost and coverage.
What is a Car IDV Calculator?
An IDV Calculator for a car is an online tool used to calculate the Insured Declared Value of your car, which is its current market value. This value helps determine the maximum claim amount you can get if your car is stolen or completely damaged, and it also decides your insurance premium. The calculator considers factors like the car’s age, make, model, and depreciation to arrive at the IDV.
How to Calculate IDV of Car?
You can calculate a car’s IDV by using the formula below, or one can use the IDV calculator. Also, IDV is calculated separately if your car is equipped with extra accessories or modifications that are not factory-fitted, as these will fetch an extra cost.
IDV calculation if car is equipped with accessories
Insured Declared Value (IDV) = (Company’s listed price – the depreciation value) + (Cost of car accessories - the depreciation value of these parts)
IDV calculation if car is not equipped with accessories
IDV = Manufacturer’s registered price – the depreciation value
What is the Role of Depreciation in IDV Calculation?
Depreciation is an important factor that helps calculate IDV in car insurance. The higher the depreciation on your car parts, the lower its IDV. This is because as the car gets older, the depreciation on car value increases, and it loses its market value or IDV value for car over time.
So, in case of theft or total damage to your car, you will receive a lower claim amount from the insurer.
What is the Standard Depreciation Rate for Cars?
Depreciation is calculated based on the car depreciation rate, given in the table below:
Let us understand how the depreciation rates are used to calculate your car’s IDV with the help of the following example.
For example, suppose your car is less than 6 months old, its current ex-showroom price is ₹100, and the depreciation rate as per the above given table is only 5%.
- Then, after its purchase, as the car ages, the IDV value of car drops to ₹95.
- It drops to ₹85 for vehicle age exceeding 6 months but not exceeding 1 year
- For vehicle age exceeding 1 year but not exceeding 2 years, IDV becomes ₹80.
- Then it drops to ₹70 for vehicle age exceeding 2 years but not exceeding 3 years, and so on.
- Now, after 50% depreciation in its 5th year, the IDV falls to ₹50.
If your car is more than 5 years old, the IDV depends on the condition of the car, the manufacturer, model, and availability of its spare parts.
At the time of resale, your IDV is indicative of the market value for your car. However, if you have maintained your car well and it is shining as good as new, you can always aim at a price more than your IDV might offer you. At the end of the day, it all boils down to how much love you have showered on your car.
How to Check IDV Online Using Digit’s IDV Calculator?
- Enter Your Car Details: Provide basic information such as the make, model, variant, and year of manufacture.
- Fill in Registration Information: Add your car’s registration year and location, as IDV can vary slightly by region.
- Calculator Applies Depreciation: The tool automatically applies the standard depreciation rate based on your car’s age.
- IDV (Insured Declared Value) Is Calculated: The calculator determines the current market value of your car after depreciation.
- View Maximum Claim Value: The displayed IDV tells you the highest amount you can claim in case of total loss or theft.
What are the Benefits of Using an IDV Calculator?
Using an IDV (Insured Declared Value) calculator makes it much easier to understand your car’s worth and choose the right insurance coverage. It removes the guesswork and gives you clearer, more confident decision‑making. Here’s how it helps:
Helps You Avoid Over or Under‑Insuring
Picking the wrong IDV can cause problems later, either smaller claim payouts or unnecessary extra premium. With the calculator, you can choose an IDV that strikes the ideal balance between cost and coverage.
Helps You Find the Right Premium
Your IDV directly affects your insurance premium. The calculator shows you in real time how a higher or lower IDV changes your premium amount.
Tells You the Maximum Claim Amount
IDV is the highest amount you can receive if your car is stolen or declared a total loss. The calculator gives you a clear idea of this payout, so you know exactly what to expect during big claims.
Makes Renewals Smooth and Accurate
Your car’s market value changes over time. Using the calculator during renewal ensures your coverage reflects its current value, not last year’s estimate.
Useful Beyond Insurance
An IDV calculator can also help if you’re checking your car’s resale value or planning to sell your vehicle. It gives you a quick, realistic picture of your car’s worth in the market.
What Factors Help Determine IDV Value for Car?
Why it's Important to Choose the Right IDV?
- Impacts Claim Amount: The right IDV ensures you get fair compensation if your car is stolen or suffers total damage.
- Affects Premium: A higher IDV means a higher premium, and a lower IDV means a lower premium.
- Avoid Overpayment: Setting IDV too high increases your premium unnecessarily.
- Avoid Underinsurance: Setting IDV too low reduces your claim amount, leaving you underinsured.
- Ensures Accurate Coverage: Choosing the correct IDV balances cost and protection for your car.
How Does IDV Affect Your Car Insurance Premium?
Here’s an example using a popular car like Maruti Swift to show how IDV affects premium and claim payout:
Impact on Premium & Claim:
Choosing too low IDV can leave you underinsured and choosing too high IDV increases premium unnecessarily and may lead to disputes.
Things to Keep in Mind While Calculating the IDV of a Car
Here are a few things that can help you set the right and accurate IDV for your car.
- Apply the correct depreciation rate based on the car’s age as per IRDAI guidelines.
- Include the value of additional accessories like alloy wheels or music systems.
- Avoid setting a very low IDV, as it reduces claim payout and leaves you underinsured.
- Avoid setting a very high IDV, as it unnecessarily increases premium and may cause disputes.
- Check the prevailing market price or resale value of similar cars for accuracy.
- Use the formula: IDV = Manufacturer’s Price – Depreciation + Accessories Value.
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How to Choose the Right IDV for your Car?
Choosing the right IDV is crucial to ensure adequate coverage without paying an unnecessarily high premium. Here’s how to decide whether a higher IDV or lower IDV suits you:
Car Policy with Higher IDV
Car Policy with Lower IDV
You own a new or luxury car
Expensive cars and their spare parts cost more to repair or replace, so a higher IDV ensures your coverage matches these costs.
You want better protection against depreciation
A higher IDV reduces the impact of depreciation on your claim amount, ensuring compensation closer to the car’s actual market value in case of theft or total loss.
Always choose an IDV that reflects the current market value of your car. Avoid setting it too high or too low; both can lead to financial disadvantages.
Why IDV Matter During Car Insurance Renewal?
- Determines Maximum Claim Amount: IDV is the highest amount your insurer will pay in case of total loss or theft. Choosing the right IDV ensures you get fair compensation.
- Direct Impact on Premium: A higher IDV increases your premium, while a lower IDV reduces it. Striking the right balance prevents overpaying or being underinsured.
- Reflects Current Market Value: During renewal, IDV should match your car’s depreciated market value. Overstating or understating can lead to financial disadvantages.
- Avoid Claim Disputes: Unrealistically high or low IDV can cause disputes during claim settlement. Accurate IDV ensures smooth processing.
- Influences Coverage Adequacy: If IDV is too low, you may not recover enough to replace your car after a total loss. Too high, and you pay an unnecessary premium.
- Depreciation Adjustment: Renewal is the time to apply the correct depreciation rates based on car age, accessories, and condition.
An accurate IDV is essential for securing the right coverage and a fair premium. Using an IDV calculator helps you estimate this value more confidently by applying the correct depreciation and reflecting your car’s real market worth. When your IDV is set correctly, you are better protected during claims and avoid paying more than necessary for your policy.
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Explain It Like I'm Five!
We're making insurance so simple, now even 5-year-olds can understand it.
Imagine you own a cool toy car. One day, you decide to find out how much money you would get if you sold it to your uncle. Your uncle looks at your toy closely and sees it's made of plastic, metal, and rubber, and considers how long you have been playing with it. Based on this, your uncle offers to give you ₹200 for the car. So, in this case, ₹200 is your toy car’s IDV.
This IDV amount is the compensation you will get for the current value of your toy car if it's stolen or damaged.
FAQs about IDV Calculator
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Content Writer
Storyteller at heart, Manasvi brings 4 years of content and marketing experience to Digit. Whether it's writing SEO-optimised articles or a researched and insightful blog, she strives to transform ideas into creating impactful and engaging content.
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Product Head - Motor
Mayur specializes in motor insurance and is responsible for overseeing the development and management of motor insurance products. With expertise in product strategy and market analysis, he focuses on developing customer-centric insurance solutions.