What is the importance of IDV value?
Why is IDV important in Car Insurance? As explained, IDV is the amount that you will get in case your vehicle is stolen or suffers total loss. It is highly recommended to get IDV which is near the cost of market value of car. Insurers provide with range of 5\% to 10\% to decrease IDV which could be chosen by customer.
Why IDV is important in insurance?
IDV is the ‘sum insured’ in the car policy. It is the amount your car is insured for and forms the basis of all settlements in the event the car is stolen or damaged beyond repair in an accident. Therefore, when you get your car insured for the first time or at the time of renewal, IDV plays an important role.
What is the insured Declared Value (IDV) of a car?
A car’s Insured Declared Value or IDV is the most important factor for determining its comprehensive car insurance cover premium. But what makes more sense – increasing or decreasing the IDV?
Is IdV always the best choice for car insurance?
That is not always the case. At best, IDV is the maximum sum insured amount that the insurance company pledges to compensate for your loss. Getting an IDV that is close to the market value of your car is always the best bet. Decreasing the IDV value will result in lower premium but it also provides you with a lower coverage than is required.
What is ididv in a car?
IDV is an abbreviation of Insured Declared Value. This is a concept that is used to determine the present market value of your car. The insured declared value is calculated by subtracting the depreciation cost from the selling price that is declared by the manufacturer.
Why is it important to understand the IdV?
Understanding the IDV is the first step in doing so. Car accidents, break downs and repairs can cause a major financial setback if you don’t have the right amount of insurance. In order to be adequately protected, you need a comprehensive car insurance plan with sufficient riders and affordable premium.