Insurance Declared Value (IDV)? IDV Calculation for Cars and Two Wheelers ?
Insurance Declared Value (IDV)
IDV Calculation for Cars & Two Wheelers Insurance Declared Value (IDV)?
How to calculate IDV?
There are specific calculators for calculating your vehicle's Insured Declared Value, or IDV, but if you wish to calculate the IDV on your own, there are two fundamental formulas you can use If there are no further accessories, the IDV can be calculated as Your Car's IDV car's ex showroom price - depreciation If you have additional accessories, you can calculate the IDV as follows: Your car's IDV (car's ex showroom price depreciation) + (cost of accessories depreciation) IDV calculation for a vehicle older than 5 years - Instead of using the rate of depreciation to figure out IDV, it's based on how well the car is in shape to figure out IDV. This is done by the person who sells or checks insurance. When your car is more than 5 years old, your IDV is based on: * The manufacturer * Car model * Availability of the spares parts
Why Is IDV Important in Car Insurance?
IDV in car insurance is the amount you will get if your car is stolen or totaled. It is very important to get an IDV that is close to the value of the car. It's up to the customer which insurance company will give them a 5% to 10% cut in IDV. A lower IDV would mean a lower price.IDV and Premiums for car Insurance - The amount you will pay is directly proportionate to the vehicle's IDV. This means that the premium falls as the vehicle ages. From the policyholder's standpoint, this makes perfect sense, as paying a high premium to insure an outdated car is not cost-effective.
Check the IDV when you're renewing your policy- * When it comes time to renew your policy, don't just agree to pay what your insurer requests.
* You must determine the IDV of your vehicle and whether or not the premium is justifiable.
* If you are dissatisfied with the figures, don't be afraid to negotiate or switch insurers. Ensure that you have the proper kind of coverage at the correct kind of price.
* When renewing your comprehensive policy, keep in mind that this element determines the premium. If your car is worth more, you will have to pay a greater premium, and vice versa.
* Finally, this is the appropriate time to change the IDV value to your liking.
* Coverfox.com is a good place to start if you want to do this online. It's quite simple.