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Is it good to have higher IDV value?
Simply remember, the greater the IDV, the higher is the premium and vice versa. So if you haven’t calculated the IDV for your car, it will be nearly impossible to arrive at the OD premium. That is simply because your car’s OD premium is directly proportional to the IDV; lower the IDV, less the premium you pay.
What should be the ideal IDV?
Normally, the depreciation of a new car is 5 per cent, hence by default, the maximum IDV should be 95\% of the ex-showroom price of the car.” The moment you take your car outside the showroom, the IDV starts to come down. “The value of a car depreciates by 5 per cent within six months of buying it.
Is it good to increase IDV?
The Insured Declared Value (IDV) is the market price of your vehicle. Higher the IDV of your car higher will be the premium. The IDV is the market price of your vehicle it has an impact on your car insurance premium. If you opt for a higher IDV, the premium will go up.
How do you reduce IDV?
This is because the IDV of your vehicle depends not only on its depreciated value but also its market value. Therefore, you have the option of choosing a slightly lower IDV so as to reduce the premium payable. You can either do it by visiting the insurance company’s portal or tell your adviser to do it for you.
What color cars have better resale value?
yellow
“This makes white, black and silver appear to be in high demand, yet our analysis confirms that more obscure colors tend to hold their value better than common and popular colors.” Overall, yellow is the vehicle color that holds its value best, depreciating 45.6 percent less than the average vehicle.
Should I declare lower or higher IDV for my car?
Now a few automobile owners will think that it is best to declare lower IDV than the market value. That is simply because your car’s OD premium is directly proportional to the IDV; lower the IDV, less the premium you pay.
The higher the IDV, the higher your premium. The premium is usually 2\% to 3\% of the IDV. Higher or Lower IDV? Some car owners opt to declare a lower IDV than the market value, but while this may lower your premiums, it will also mean that when you make a claim, the compensation amount will be much lower.
What happens if you go too high with the IdV?
Going too high with the IDV is also a problem. The whole point of getting an insurance for your car is protecting yourself from a loss. But a very high IDV way beyond the market value will also be a loss-making proposition for you as a car insurance policyholder. Your premium amount would go way higher than what the car actually requires.
What is IdV and why is it important?
IDV comes into play only when you opt for own damage or comprehensive cover. Knowing your IDV is important for the simple fact that it is the main factor in determining the cost of your premium. The higher the IDV, the higher your premium. The premium is usually 2\% to 3\% of the IDV.