IDV Calculator
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We know there are terms in insurance that are difficult to understand but are extremely important to be acquainted with, one such term is IDV. IDV refers to ‘Insured Declared Value’,
An IDV (Insured Declared Value) in car insurance is nothing complicated but, refers to the market value of your car. In other words, it is the amount your car could receive in today’s market.
This IDV in car insurance helps your insurer, a.k.a us determine your claim amounts correctly during claim payments. Additionally, it also helps us determine the right premium price for your car insurance.
Insured Declared Value is the soul of your beloved car insurance. Your IDV decides the premium of your vehicle. There is a direct link between IDV and your premium.
If the IDV is high, the premium payable is higher. However, it is not advised that you understate the IDV of your vehicle or in case of damage, it will be your loss.
An IDV calculator is one of the most important insurance calculator tools, as it helps one determine not only the market value of their car but also helps in determining the right amount of premium you should be paying for your car insurance.
This further helps us (the insurer) determine the right amount payable during claims and god forbid, in cases where your car is stolen or damaged beyond repair.
Know more about Depreciation rates for your Car
Age of the Car |
Depreciation % |
6 months and below |
5% |
6 months to 1 year |
15% |
1 year to 2 years |
20% |
2 years to 3 years |
30% |
3 years to 4 years |
40% |
4 years to 5 years |
50% |
For example: If your car is less than 6 months old and its current ex-showroom price is Rs. 100, the depreciation rate is only 5%.
Which means that after its purchase, your IDV drops to Rs. 95 – dropping to Rs. 85 for vehicle age exceeding 6 months but not exceeding 1 year, Rs. 80 for vehicle age exceeding 1 year but not exceeding 2 years, Rs. 70 for vehicle age exceeding 2 years but not exceeding 3 years, and so on – until it is Rs. 50 after 50% depreciation in its 5th year.
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 really well and is shining as good as new, you can always aim at a price more than what 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.
The Insured Declared Value and your car insurance premium go hand in hand. This means, the higher your IDV is, the higher your car insurance premium – and as your vehicle ages and IDV depreciates, your premium also decreases.
Also, when you decide to sell your car, a higher IDV means you’ll get a higher price for it. Price may also be affected by other factors like usage, past car insurance claims experience etc.
So, when you’re choosing the right car insurance policy for your car, remember to make note of the IDV being offered, and not just the premium.
A company offering a low premium may be tempting, but this could be because the IDV on offer is low. In case of a total loss of your car, a higher IDV leads to higher compensations.
We're making insurance so simple, now even 5-year-olds can understand it.
You own an expensive watch. One day, you decide to find out how much you would get if you sold it. You take it to a watchmaker. The watchmaker looks at your watch, and explains that it is made of glass, metal, leather and screws. So, he first adds up the cost of those materials. He then asks you how old the watch is, and you tell him that it is 5 years old. He writes that down as well. Based on all of this, he tells you that if you sold your watch, you would get Rs. 500. In this case, Rs. 500 is your IDV!