IDV Calculator

IDV means or refers to the maximum or the highest amount you shall receive from the insurer if the insured car is damaged beyond repair. IDV full form stands for Insured Declared Value. Your insurer shall offer you the IDV of your car if it is damaged so severely (total loss) that it cannot be repaired. Note that the IDV is declared by the owner of the car while insuring it. It directly impacts the payable premium — the higher the IDV, the higher the premium. You can use IDV calculator to check the IDV details.

When you buy a new car, the IDV is based on the manufacturer’s selling price, taking depreciation into account. Below is the formula to calculate IDV in insurance. Alternatively, you can use our IDV calculator for car to get the IDV for your vehicle.

With Accessories

This formula is applicable for a new car with accessories:

IDV = (Manufacturer’s Selling Price – Depreciation Cost) + (Accessories Cost – Depreciation of These Accessories).

Without Accessories

If you have not added any accessories to your car, then the formula is:

IDV = Manufacturer’s Selling Price – Depreciation Cost.

To check the Insured Declared Value (IDV) with ACKO, here is all you need to do:

Listed below are the steps that you need to follow in order to check IDV of a new car with ACKO:

The following table provides the standard car depreciation rate for IDV calculation.

IDV calculator is an online tool that lets you get the right Insured Declared Value for your vehicle. To use this calculator, you just need a few details such as the vehicle's age, model, accessories details, etc. 

Some of the benefits of using IDV calculator are as follows:

Using an IDV (Insured Declared Value) calculator offers several benefits when managing your car insurance:

Listed below are a few tips that will help you select the right IDV:

The premium of a car insurance policy is directly related to the Insured Declared Value (IDV). The higher the IDV, the higher the premium. Similarly, if the IDV is lower, the premium will also be lower. However, if you choose a lower IDV, the insurer will only compensate you for the declared IDV, which will result in you paying a higher amount at the time of claim settlement. Thus, it is important to choose the right IDV when you buy or renew a car insurance policy. 

Here’s a table that lists the popular car models with their IDV. Note that the IDV is for brand-new car models, and the IDV in insurance is region-specific (Bangalore).

Insured Declared Valuer is directly proportional to the premium of your car insurance policy. If you decrease the IDV in the IDV calculator, your premium will also decrease. Here are the pros and cons of decreasing the IDV.

IDV is directly proportional to the premium of your car insurance policy. If you increase the IDV in the IDV calculator, your premium will also increase. Here are the pros and cons of increasing the IDV.

Setting a lower IDV for your car would mean receiving a lower claim amount in case of total loss or theft. A total loss occurs when the car gets severely damaged, and its repair cost is more than the car’s value. In this situation, the insurance company will pay the IDV amount that you have set for the car while buying your car insurance policy. 

However, you may prefer to set a lower IDV for the following reasons.

Here are some common myths about IDV in car insurance.

Myth: You cannot change the IDV suggested by the insurance company.

Fact: You can change the IDV the insurance company does not offer a fixed value. You must select the right IDV from the range suggested by your car insurance company.

Myth: If this is the IDV of my car, it is also the resale value.

Fact: The resale value of a car depends upon many factors, such as the car’s condition, its maintenance schedule, etc. IDV is in no way the indicator of its resale cost.

Myth: Decreasing the IDV will save premium.

Fact: Decreasing the IDV will decrease the premium, but it will also affect the claim amount in case of a major claim.

The Insured Declared Value (IDV) plays a crucial role in car insurance renewal, as it directly impacts the premium and coverage offered. IDV is the maximum amount an insurance company will pay in case of total loss, theft, or destruction of the vehicle. When renewing car insurance, it’s important to update the IDV based on the current market value of the vehicle, which may have depreciated over time due to age, wear, and tear.

If the IDV is set too high, the premium may be unnecessarily expensive, while setting it too low could result in inadequate coverage. A proper IDV ensures that in the event of a claim, the insurer will offer a payout that reflects the vehicle’s true worth. It’s recommended to review and adjust the IDV during each renewal to align with the current market conditions, ensuring comprehensive protection and avoiding underinsurance.