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Is it good to reduce IDV value?
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.
Can we change IDV value of car?
“It can vary as the insurer lets you change it by plus or minus 15 per cent. So if the default IDV being offered is Rs 3 lakh, you can choose an IDV between Rs 2.55 lakh and Rs 3.45 lakh.” says Gupta.
What should my car 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 okay to lower the insured declared value of car?
Nothing wrong with it, but one should be careful while doing so. Remember, the insurers may quote a lower premium, but at the same time the insured declared value ( IDV) of the car may also be kept lower. IDV is the ‘sum insured’ in the car policy.
What is insuredinsured Declared Value (IDV)?
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.
What is the IdV value of my car?
The IDV is the value estimate the insurance company gives to your car at the time of a policy renewal. With age, the car and its parts age as well and so the values drop. A car older than five years is deemed to be 50\% less in value than its original price. As the declared value decreases, so do the car insurance premium.
What happens if I increase the IDV of my car insurance?
If you increase the IDV, your premium will also increase. Likewise, if you decrease the IDV, the premium will also decrease. IDV is directly proportional to the premium of your car insurance policy.