Main menu

Pages

Lesser-known facts about IDV from a car

 

 

Lesser-known facts about IDV from a car

The estimated current market value of your insured car is IDV. Read with you to find out some facts about the IDV of the car.

Table of contents
Facts about IDV for a car that you don't know well
What is the IDV account formula?
IDV account for more than 5 years
IDV advertising lower/higher than market value
Take away

In the event of a loss, IDV is the maximum amount that the insurance will pay you. In other words, the estimated current market value of your insured car is IDV. The insurance company decides the amount of the settlement of the car insurance claim that will be released on the basis of IDV in the event of a complete loss of vehicle. When the loss exceeds 75% of IDV due to an accident or theft, it is referred to as a complete constructive loss.


Facts about IDV for a car that you don't know well

What is the IDV account formula?

IDV is calculated using the "current sale price" of the car, model and year of manufacture. The lower the IDV, the older the engine. When the insurance company uses the IDV account to calculate the car insurance, the "current sale price" of the car is used instead of the money paid when purchasing the car. For example, if the car cost 10 Indian rupees in 2014 but now costs 8.5 Indian rupees, select IDV based on the current sale price of 8.5 Indian rupees. When calculating the car's IDV, post-purchase additional accessories are also an addition to the car price. The cost of these goods is applied to IDV if there are any tools not installed in the factory, such as speakers or music devices because the cost of these items is separate from the price of the car. These goods have been adjusted to match their depreciation because they may have suffered some wear and tear over time.


[Previous showroom price + sales tax + accessories not included in the sale price offered - depreciation] = IDV - reduced consumption + registration fee + insurance fee.

IDV account for more than 5 years

For cars over 5 years old or old, IDV depends on the condition and age of the car. A contractual agreement is reached between the insurance company and the policyholder when it comes to the establishment of the IDV vehicle insurance plan. The age, condition and mileage of the vehicle are just a few of the elements that go into determining IDV car insurance. It is important to understand how the value of IDV decreases as the car ages. It is unwise to buy expensive insurance coverage for a car over 5 years old.

IDV advertising lower/higher than market value

When buying car insurance, people reported IDVs larger or lower than the market value of the car. People choose less IDV because they want to pay lower prices. In the event of an accident, one will have to pay out of pocket for any expenses not covered by the insurance claim. Individuals also reported ADV greater than the market value of their car while paying insurance. Despite claiming a higher IDV when the vehicle is removed, the life of the vehicle and the consumption rate result in lower compensation being paid to the claim throughout the claim settlement procedure.


Take away

IDV is one of the most important factors that insurance companies evaluate when determining the price of your car insurance. To avoid any unpleasant shocks during claims, check that your car's IDV corresponds to the age and type of your vehicle whether you are buying insurance for the first time or renewing your car insurance policy.

You may also want to read - the most effective ways to kill germs in a car | Clear your car

Steps to take after buying a new car

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should conduct further research or consult an expert in this regard.

تعليقات

تعليق واحد
إرسال تعليق

إرسال تعليق