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.
IDV = (Manufacturer’s Selling Price – Depreciation Cost) + (Accessories Cost – Depreciation of These 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:
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:
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.
| AGE OF YOUR CAR | DEPRECIATION FOR IDV |
| Up to 6 months | 5% |
| 6 months to 1 year | 15% |
| 1 to 2 years | 20% |
| 2 to 3 years | 30% |
| 3 to 4 years | 40% |
| 4 to 5 years | 50% |
| 5 years+ | To be negotiated |
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.
IDV full form in insurance is Insured Declared Value, and it is one of the primary factors which influences the car insurance premium amount. Here are some points to remember while calculating it in car insurance.
Do not reduce the IDV so that the premium is lower. It will reduce your claim amount in case of any losses incurred.
Do not overstate the IDV since it will increase the premium, and ACKO will compensate you based on the type of loss and not the entire IDV.
Do not provide an inaccurate IDV, as it could lead to a possible decline of your claim.
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).
| Model | Variant | IDV |
| Tata Punch | Accomplished (Petrol) | Rs. 6.92 lakhs |
| Maruti Suzuki Swift | ZXI (Petrol) | Rs. 5.55 lakhs |
| Tata Nexon | XZ Plus (Petrol) | Rs. 8.12 lakhs |
| Kia Seltos | 1.5 HTX (Petrol) | Rs. 11.39 lakhs |
| Hyundai Creta | SX IVT (Petrol) | Rs. 14.5 lakhs |
| Maruti Suzuki Brezza | VXI | Rs. 8.99 lakhs |
The IDV value is dependent on a few factors related to your car. Here is a list of those factors.
One of the significant factors that determine the IDV is the age of the car. The older the vehicle is, the lower its market value. Hence, the IDV for an older car will be lower compared to a brand-new vehicle.
Several types of cars are available in the market, including hatchbacks, sedans, SUVs (Sports Utility Vehicles) and MUVs (Multi-Utility Vehicles). The value of a car depends upon its type. A hatchback car is usually cheaper compared to sedans or SUVs. Thus, the IDV would vary accordingly.
Various car models of the same type, say a sedan, can have different IDVs. It depends upon the brand i.e. manufacturer, and the features offered on a certain model of car.
There is a slight difference in the cost of a car depending upon the location of purchase. For example, the ex-showroom price of the same model can be different in Mumbai and Delhi.
Depreciation is a reduction in the monetary value of a car due to age. The older the car, the more depreciation. For example, two cars of the same model will have different IDVs because they were manufactured in different years. You can use IDV calculator to check this difference.
Depreciation on accessories is also calculated while determining the amount of IDV. Thus, its value will change depending on the age and working condition of additional accessories.
The manufacturer’s selling price also determines the IDV of a car. The selling price includes the accessories installed by the manufacturer and all other components. Generally, the higher the selling price, the more will be IDV.
The condition of the vehicle, such as its mileage, wear and tear, or any modifications also affects the IDV. The vehicles that are in better condition typically have higher IDV.
IDV meaning stands for the sum insured amount of an insurance policy. Here’s how the IDV value impacts the premium of your Comprehensive Car Insurance Policy.
IDV is the main component of a Comprehensive Car Insurance Policy. One does not need to declare the IDV while buying a Third-party policy, as the car is not insured for damages. Third-party insurance is for third-party liabilities.
If you adjust the offered IDV amount on the IDV calculator while buying the policy, you will notice that the premium will also increase or decrease. If you increase the IDV, your premium will also increase. Likewise, if you decrease the IDV, the premium will also decrease.
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.
In most cases of a car insurance claim, the IDV is not required for the calculation of the claim amount. However, while buying a Comprehensive Car Insurance policy, it is important that you declare the IDV every year. The IDV of your car will reduce due to a decrease in its market value i.e. the value will depreciate with time. IDV comes into the picture for claim settlement only in the following situations.
You can raise a theft claim after the police declare your vehicle as “non-traceable”. In this situation, ACKO will settle a claim amount that is approximately equal to the IDV of your car.
When a vehicle gets damaged due to a contingency, ACKO will assess the extent of the damage. If there is damage of 75% or more, it will require extreme repairs. Here, the repair cost will exceed its IDV. Thus, a total loss claim should be raised.
In an unfortunate situation where the car gets damaged beyond repair, you can raise a Total Loss claim. Here, the IDV component of the car will be taken into account for settling the claim.
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.
10k Linkedin Followers 
Reviewed by Lokesh Shetty 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
Products 
Company
Legal
Support
Car Insurance 
Bike Insurance
Health Insurance
Group Health Insurance
Travel Insurance
Life Insurance