Your car has a value. Insurance calls it IDV.
You may have seen the term IDV while buying or renewing car insurance and simply skipped past it. But IDV can become extremely important when your vehicle is stolen or suffers a total loss. So, what exactly does IDV mean?
IDV isn't just another number on your insurance policy.
It represents the insurer's declared value of your vehicle for the purpose of the policy, subject to the applicable terms and conditions. And it can matter significantly when a vehicle is stolen or declared a total loss.
What does IDV actually mean?
Let's remove the insurance jargon.
IDV is the amount representing the insured value of the vehicle for the purpose of the own-damage section of the motor insurance policy. It broadly reflects the vehicle's value after accounting for applicable depreciation and other factors used under the policy. The exact calculation and applicable treatment can vary, so the policy schedule and insurer's terms should always be checked.
Why does IDV matter?
Three situations make it especially important.
Total Loss
If the vehicle suffers a covered total loss, the applicable IDV can be relevant when determining the claim settlement, subject to the policy terms.
Theft
If the insured vehicle is stolen and the claim is admissible, IDV can become an important factor in the settlement, subject to the policy conditions.
Premium
The IDV selected or applicable to the vehicle can influence the own-damage premium. A higher IDV can generally mean a higher premium.
Why does IDV usually go down?
Cars generally lose value as they age. That's why the insured value of a vehicle normally changes over time.
IDV vs Market Value
They sound similar. They aren't necessarily the same thing.
IDV
The Insured Declared Value is the value used under the motor insurance policy for the insured vehicle, subject to the policy's applicable terms and conditions.
Market Value
The price a buyer and seller may actually agree on in the market can differ from the IDV stated in an insurance policy.
What do you want to know about IDV?
Tap a topic for the simple explanation.
Premium
IDV can influence the own-damage premium. Generally, a higher insured value can mean a higher own-damage premium, although premium depends on several other factors too.
Don't choose IDV only because the premium is cheaper.
A lower IDV may reduce the own-damage premium, but it can also affect the amount relevant to an admissible total-loss or theft claim. At renewal, don't simply choose the lowest number. Look at the vehicle's condition, applicable valuation, coverage and the insurer's policy terms before making a decision.
IDV in Motor Insurance — FAQs
Your car has a value. Make sure you understand what yours means.
Don't look at motor insurance premium alone. Understand the IDV, coverage, deductibles and policy terms before renewing.
Talk to Us on WhatsAppYour car has a value. Insurance calls it IDV.
You may have seen the term IDV while buying or renewing car insurance and simply skipped past it. But IDV can become extremely important when your vehicle is stolen or suffers a total loss. So, what exactly does IDV mean?
IDV isn't just another number on your insurance policy.
It represents the insurer's declared value of your vehicle for the purpose of the policy, subject to the applicable terms and conditions. And it can matter significantly when a vehicle is stolen or declared a total loss.
What does IDV actually mean?
Let's remove the insurance jargon.
IDV is the amount representing the insured value of the vehicle for the purpose of the own-damage section of the motor insurance policy. It broadly reflects the vehicle's value after accounting for applicable depreciation and other factors used under the policy. The exact calculation and applicable treatment can vary, so the policy schedule and insurer's terms should always be checked.
Why does IDV matter?
Three situations make it especially important.
Total Loss
If the vehicle suffers a covered total loss, the applicable IDV can be relevant when determining the claim settlement, subject to the policy terms.
Theft
If the insured vehicle is stolen and the claim is admissible, IDV can become an important factor in the settlement, subject to the policy conditions.
Premium
The IDV selected or applicable to the vehicle can influence the own-damage premium. A higher IDV can generally mean a higher premium.
Why does IDV usually go down?
Cars generally lose value as they age. That's why the insured value of a vehicle normally changes over time.
IDV vs Market Value
They sound similar. They aren't necessarily the same thing.
IDV
The Insured Declared Value is the value used under the motor insurance policy for the insured vehicle, subject to the policy's applicable terms and conditions.
Market Value
The price a buyer and seller may actually agree on in the market can differ from the IDV stated in an insurance policy.
What do you want to know about IDV?
Tap a topic for the simple explanation.
Premium
IDV can influence the own-damage premium. Generally, a higher insured value can mean a higher own-damage premium, although premium depends on several other factors too.
Don't choose IDV only because the premium is cheaper.
A lower IDV may reduce the own-damage premium, but it can also affect the amount relevant to an admissible total-loss or theft claim. At renewal, don't simply choose the lowest number. Look at the vehicle's condition, applicable valuation, coverage and the insurer's policy terms before making a decision.
IDV in Motor Insurance — FAQs
Your car has a value. Make sure you understand what yours means.
Don't look at motor insurance premium alone. Understand the IDV, coverage, deductibles and policy terms before renewing.
Talk to Us on WhatsApp