Car insurance idv value

Meaning Insured Declared Value or IDV in short is easy to understand. It is the monetary value of a product and the owner of that product declares the IDV. In the case of car insurance, the IDV of your car is the Sum Assured amount when you raise a claim during the policy period against your car insurance.

This IDV is then used by the insurance company to determine the premium amount. As a formula, the IDV value of car is arrived at after deducting depreciation from the manufacturer’s listed selling price.

In most cases of a car insurance claim, the IDV is not required for the calculation of the claim amount. However, while buying a Comprehensive Car Insurance policy, it is important that you declare the IDV every year. The IDV of your car will reduce due to a decrease in its market value i.e. the value will depreciate with time.