{"id":571,"date":"2019-08-16T05:20:00","date_gmt":"2019-08-16T05:20:00","guid":{"rendered":"https:\/\/www.covermatch.com\/guide\/?p=571"},"modified":"2019-08-16T07:46:01","modified_gmt":"2019-08-16T07:46:01","slug":"how-do-you-check-your-car-value-in-your-insurance-policy","status":"publish","type":"post","link":"https:\/\/www.covermatch.com\/guide\/how-do-you-check-your-car-value-in-your-insurance-policy\/","title":{"rendered":"How do you check your car value in your insurance policy?"},"content":{"rendered":"

When you are looking to insure your car, you should know the Insured Declared Value (IDV) of the car. It is the maximum Sum Assured fixed by the insurance company<\/a> which is provided on theft or total loss of vehicle. IDV is basically the current market value of the vehicle and if the vehicle suffers a total loss, and is given as compensation to the policyholder by the insurer.<\/p>\n

The value of the car<\/strong> is calculated as manufacturer\u2019s listed selling price minus depreciation. The cost of registration and insurance are excluded from IDV. When there are accessories which are not factory fitted, they are calculated separately at extra cost if insurance<\/strong> is required for them.<\/p>\n

How to Calculate IDV?<\/span><\/h3>\n

The selling price of a new car that the manufacturer decides is the basis of IDV calculation.<\/p>\n

Insured Declared Value = (Company\u2019s listed price \u2013 the depreciation value) + (Cost of vehicle accessories – the depreciation value of these parts)<\/p>\n

The Depreciation Schedule to fix IDV of the Vehicle<\/span><\/h3>\n
\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n
\n

Age of Vehicle<\/p>\n<\/td>\n

\n

% Depreciation for adjusting IDV<\/p>\n<\/td>\n<\/tr>\n

\n

Not exceeding 6 months<\/p>\n<\/td>\n

\n

5%<\/p>\n<\/td>\n<\/tr>\n

\n

Exceeding 6 months but not exceeding 1 year<\/p>\n<\/td>\n

\n

15%<\/p>\n<\/td>\n<\/tr>\n

\n

Exceeding 1 year but not exceeding 2 years<\/p>\n<\/td>\n

\n

20%<\/p>\n<\/td>\n<\/tr>\n

\n

Exceeding 2 years but not exceeding 3 years<\/p>\n<\/td>\n

\n

30%<\/p>\n<\/td>\n<\/tr>\n

\n

Exceeding 3 years but not exceeding 4 years<\/p>\n<\/td>\n

\n

40%<\/p>\n<\/td>\n<\/tr>\n

\n

Exceeding 4 years but not exceeding 5 years<\/p>\n<\/td>\n

\n

50%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

If the vehicle is aged over 5 years then IDV is calculated by mutual agreement between the insurer and the insured and by assessment of the vehicle\u2019s condition done by surveyors, car dealers etc.<\/p>\n

Things to consider while calculating IDV<\/span><\/h3>\n

Make sure that you take into consideration the below-mentioned points to carefully assess the IDV of your car-<\/p>\n