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What if repairs are more than car is worth insurance?
Know your car’s value Note that most standard auto policies will not pay to repair a vehicle if it is “totaled”—that is, if the repairs cost more than the cash value assigned to the car. It is up to your insurer to decide whether to pay for repairing your car or to declare it a total loss and pay you its book value.
How does IDV value is calculated?
IDV is calculated as manufacturer’s listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The IDV of the accessories which are not factory fitted, are calculated separately at extra cost if insurance is required for them.
How is the IDV of a vehicle determined?
For vehicle above 5 years or car models which are obsolete, the IDV is determined mutually between vehicle owner and insurer. When you buy a standard motor insurance policy, the insurer may often tell you the policy will provide you total loss benefit in case of a car accident.
Can I claim more than the IDV of my car?
Kapil Mehta, co-founder, online insurance broking firm Securenow.in says that the insurer is not liable to reimburse any amount more than the IDV determined for a vehicle. Since the IDV is a depreciated value, in case of total loss of your car, you will not be able to get a completely new car with the claim money.
What is meant by total loss in car insurance in India?
However, in case of motor insurance in India, a car is considered to be a ‘total loss’ if the cost of repair of a car damaged in an accident, exceeds 75 percent of the insured declared value (IDV) of the car.
What is IdV depreciation in auto insurance?
Depreciation is a reduction in the value of an asset over time, due in particular to wear and tear. The older the car, the higher the depreciation. To fix the IDV, your insurer adjusts it with standard depreciation rates as per the Indian Motor Tariff Act.