IDV (Insured Declared Value)

What is IDV (Insured Declared Value) and how is it important?

IDV (Insured Declared Value) is the value that the insurance company associates with your vehicle at the time of insurance. In layman’s terms, it is the amount that you get in case your vehicle is stolen or completely damaged. It is highly recommended to get IDV of the amount as the market value of car.

IDV (Insured Declared Value) is calculated as manufacturer’s listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The depreciation schedule is as follows:

Age of Vehicle % Depreciation for adjusting IDV
Not exceeding 6 months 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%

Beyond 5 years, the IDV is calculated by mutual agreement (between you and insurer) or based upon last IDV (minus depreciation)

Insurance agents typically reduce IDV to lower your premium, but this is not advisable. Since it increases your loss risk, if the vehicle is stolen or badly damaged. Not only in that year, but in subsequent years as well, since the new policies might be based on the IDV that you decide now.

If you need any assistance in selecting the best insurance for your vehicle, please fill in the form above and get the best insurance quote.