What Insured Declared Value Means And Why Does It Matter?

First-time buyers may need to understand a strategy requiring numerous terminology like IDV. This affects your bike insurance rate and claim process. What is IDV in insurance? We created this fast read to explain IDV in bike insurance. *


IDV full form in insurance is Insured Declared Value. IDV is the insurer’s maximum payout for car theft or total loss. IDV is your car’s market worth. At the start of the car insurance policy, the manufacturer’s advertised selling price of the model and version (including extras) is used to estimate it. Adjusting depreciation determines its value annually. IDV determines your automobile insurance claim if your four-wheeler is stolen or damaged beyond repair. Your car must be insured for the proper IDV. Use a vehicle insurance calculator. *

My car’s IDV matters, but why?

Car IDV matters for two main reasons. First is the maximum compensation you will receive for theft or totalled car. Second, your car insurance premium depends on its IDV. IDV increases premiums and vice versa. Many car owners consider lowering their IDV to cut their premiums. However, a lower IDV may lessen your compensation if your vehicle is stolen or totalled. When buying or renewing auto insurance, utilise an IDV calculator to set the correct IDV for your vehicle. An online IDV calculator on Bajaj Allianz Car Insurance gives you a close estimate of your vehicle’s IDV. To utilise this tool, go online & visit a car insurance website. *

How is your vehicle’s IDV calculated?

Our insurance cum IDV calculator checks your car’s IDV using a sophisticated algorithm. Your car’s worth depends on various things. *

5 Vehicle IDV factors:

Several factors determine your vehicle’s IDV, including *:

Car type: Marketed autos vary across builds – hatchbacks, sedans, SUVs, MUVs, etc. Various cars have different values. SUVs cost more than sedans. Sedans cost more than hatchbacks. Thus, car type affects IDV. *

Manufacture and model: The make and model of your car affect its IDV. Even if they make the same cars, various brands have different values (i.e. hatchback, sedan, etc.). *

Age: Age and depreciation are crucial when assessing your vehicle’s IDV. Driving your car home from the dealership depreciates it. It depreciates with age. Even though they’re the same type, manufacturer, and model, older cars have lower IDVs. *

Location: Your car’s IDV is slightly affected by its registration location. Due to city-specific ex-showroom prices, car insurance prices are impacted as well. *

Accessories: Finally, the depreciated cost of any car accessories can be included in the IDV calculation. *

Should I pick a lower IDV?

A car insurance calculator calculates IDV online. It rapidly checks your car’s value. A calculator lets you customise the IDV. Lower your car’s IDV in the quote. Changing the IDV will influence your insurance payment if your vehicle is stolen or totalled. *

Lowering your car’s IDV has consequences resulting in

  • Reduced premiums
  • Reduces car insurance costs.
  • Your policy’s sum insured will decrease.
  • Thus, Total Loss compensation is lower. *

Should I pick a greater IDV? *

Increase your car’s IDV with our online IDV calculator. Benefit from a higher IDV in your quotation. Increase your car’s IDV and see what happens: 

  • Your policy’s sum insured increases. 
  • This increased sum insured can be very beneficial in a total loss. 
  • However, automobile insurance premiums rise.

IDV payment date?

When buying and renewing car insurance, set the proper IDV, and your premiums will match your car’s value. Bajaj Allianz Car Insurance will guarantee fair and adequate reimbursement if your IDV is used to calculate a claim amount. *

Theft: The car’s IDV is usually paid for theft. Theft is a total loss, so the insurance company must pay the current market value (IDV). This reimbursement will mitigate car theft. *

Total loss of the vehicle: The other type of claim where the IDV is paid is when the repair cost exceeds its insured value. Accidents, earthquakes, and riots can cause such devastation. *

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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