In order for an automobile to be driven legally on Indian roads, whether it is brand new or old, it must be protected by an active insurance policy. Aside from that, you’ll feel more at ease knowing that your vehicle is covered by insurance in the case of any unanticipated occurrence simply because you have that knowledge. When you buy a new auto insurance policy or renew an existing one, you are required to make a premium payment to the insurance provider in the amount of money specified by the policy. Your vehicle’s IDV, also known as its Insured Declared Value, is among the most important elements that go into determining the cost of your auto insurance premium. Let’s discuss its importance and how you can easily know it with an IDV calculator.
The Importance of the Declared Value of the Insurance:
The phrase “Insured Declared Value” (sometimes abbreviated as “IDV”) is used frequently in the context of auto insurance policies. To put it simply, it is the most money that your auto insurance provider is willing to provide you on the occasion that you file a claim for a total loss. In the event that someone steals your automobile or that it is involved in an accident that renders it beyond repair, the amount of money that you must be insured to obtain will be equal to the IDV of the automobile.
Therefore, in the best interest of the policyholder, this raises a very important question: who makes the decision about the IDV, and how is it made?
The present worth of the vehicle as determined by the market less any depreciation that has occurred on its individual components is known as the Insured Declared Value. The IDV value calculator does not take into account the fees associated with registering the vehicle or paying its insurance payments. In the event that the accessories within a vehicle were not factory-installed, the IDV of each of these components must be determined independently.
How exactly is the IDV calculated?
Your car’s Insured Declared Value is established by the insurance company by analyzing a number of factors, including the selling price that is published by the automaker, the model, type, and year of the vehicle. The final step in determining the accurate IDV of the car that is being insured is to make an adjustment to the selling price to take into account the wear – and – tear that has caused the vehicle to depreciate. You can also choose to insure some of the extras that come with your car; however, if these items were added by you rather than the vehicle’s original company, a different Insured Declared Value would be determined for the accessories in question. It is important to keep in mind that the IDV calculator does not take into account the price of insurance or registration for the vehicle.
Concerning the Insured Declared Value of the insurance policy, the insurance provider and the insured are obligated to reach a consensus with one another.
How to Use an IDV Calculator?
The IDV calculator that is available online and that can be found online is quite simple to use. To determine the IDV of a vehicle, all you need to do is go through the few processes that are outlined below.
- Locate the “Ex-Showroom Price” slider just on the IDV calculator and use it to input the proper value for your vehicle.
- Navigate to the “Vehicle Registration Year” drop-down menu on the IDV calculator and choose the appropriate year.
- Use the drop-down list that is available on the IDV Calculator to choose the model as well as the manufacturer of your automobile.
- When you have precisely input all of the information requested in the previous steps, the IDV of your vehicle will appear on the IDV calculator.
Conclusion
If claiming a low IDV has long-term negative effects, then the same may be said for reporting a high IDV. If the amount of your Insured Declared Worth (IDV) exceeds the amount value of your car on the marketplace, the procedure of settling your claim may be drastically altered.
