Have you ever lost or misplaced your car keys? If yes, then you know how inconvenient and stressful it can be. Not to mention, the cost of replacing or repairing your car keys can be quite high, especially if you have a modern electronic key or a keyless entry system. But what if there was a way to protect yourself from such expenses? Well, there is. It is called Key Protect Cover in Car Insurance. Read on to learn more about what is key protect cover in car insurance.

Meaning of Key Protect in Car Insurance

Key Protect Cover in car insurance is a rider benefit you can buy with your comprehensive car insurance policy. It pays for the expenses you have paid from your pocket due to the loss, theft or damage of your car keys. Some of the benefits of this cover are:

• If required, it reimburses the cost of replacing or repairing your car keys, including the lockset.
• It covers the cost of hiring a locksmith or towing service if needed.
• It covers all types of car keys, whether traditional, electronic or keyless.
• It has a low additional premium and a high coverage limit.

However, there are some conditions and exclusions that apply to this cover. For example:

• You must file a police FIR in case of theft or loss of your car keys.
• You need to submit the original invoice and receipts for the expenses incurred.
• You can claim this cover only up to a certain number of times in a policy year.
• You cannot claim this cover for wear and tear, mechanical or electrical breakdown, or intentional damage to your car keys.

Conclusion

If you were wondering what is key protect cover in car insurance, we hope this article has helped. Key Protect Cover in car insurance is a valuable and affordable way to safeguard yourself from the hassle and expense of losing or damaging your car keys. It gives you peace of mind and saves you from unnecessary trouble.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information

You care about your car and have insurance to protect it from accidents, theft, fires, and other awful happenings. But what about the belongings you keep in your car, like your phone or bag? What if someone takes them, or they get ruined in case of an accident? Will your insurance help with that? Well, that is where personal belonging (PB) cover comes into play. It is a rider you can add to your car insurance to protect the things you keep in your car. Read on to learn more about what is PB in car insurance.

Meaning of Personal Belonging in Car Insurance

• So, what is PB add-on in car insurance? A personal belonging cover is an add-on cover that compensates for the loss or damage of your belongings kept in your car due to theft, fire, or accident.

• Personal belongings include smartphones, laptops, cameras, wallets, bags, and clothes you carry around with you in your car.

• The coverage limit of a personal belonging cover depends on the insurer and the insured declared value (IDV) of your car. 

• To avail of the benefits of personal belonging cover, you need to pay an additional premium over and above your comprehensive car insurance premium.

• You must also follow certain conditions and exclusions while claiming a personal belonging cover. For example, you need to report the incident to the police within 24 hours and provide proof of ownership of the items. However, you cannot claim for items not mentioned in the police report.

Conclusion

A personal belonging cover is a valuable add-on cover that can save you from the financial loss of losing or damaging your belongings kept in your car. It can also give you peace of mind and security while travelling with your valuables in your vehicle. However, compare insurers and their coverage limits before buying a personal belonging cover. You should also read the policy wording carefully and understand the terms and conditions of the cover. Comprehensive car insurance with personal belonging cover can reduce the financial burden in case of theft, ensuring that losses incurred from stolen valuables are compensated.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information

If you own a car in India, you must have heard of IDV or Insured Declared Value. But do you know what it means and how to calculate the IDV of a car? IDV is the maximum amount your car insurance company will pay you in case of total loss or theft of your car. It is also the basis for determining your car insurance premium. In this article, we will explain how IDV is calculated and why it is vital for you.

How Does An Insurance Company Determine The Value Of Cars In India?

The insurance company determines the value of your car based on the following factors:

• Manufacturer's listed price:

  It is the value at which the manufacturer sells the car to the dealer. It includes the cost of the vehicle, taxes, and other charges. The manufacturer's listed price is also known as the ex-showroom price.

• Depreciation value:

  This is the reduction in the cost of your car due to wear and tear, ageing, and usage. The depreciation rate varies depending on the age of your vehicle and the type of parts.

• Accessories:

  Accessories are the additional features or parts installed in your car after purchasing it from the dealer. These may include a music system, alloy wheels, or a sunroof. The insurance company calculates the value of these accessories separately by adding their cost and deducting their depreciation.

The formula for calculating the IDV is:

IDV = (Manufacturer's listed price - depreciation) + (Cost of accessories - depreciation of accessories)

Conclusion

It is advisable to choose an IDV that reflects the current market value of your car. If you select a lower IDV, you may pay a lower premium, but you will also get a lower compensation in car insurance in case of total loss or theft. If you choose a higher IDV, you may pay a higher premium but also get a higher compensation in case of total loss or theft. You can also use an online IDV calculator to estimate the IDV of your car based on its make, model, variant, age, and accessories.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information

The tire aspect ratio is a critical dimension of a vehicle's tire that significantly impacts its performance and characteristics. It represents the relationship between the height and width of the tire's sidewall. You must understand the aspect ratio is crucial as it influences the tire's handling, ride comfort, and overall performance. Read on to learn more about what is a tyre aspect ratio.

Meaning of Tyre Aspect Ratio

Listed below are the key features of tyre aspect ratio:

• Aspect Ratio Percentage:

  The tire's aspect ratio is expressed as a percentage, representing the section height relative to the width.

• Section Height:

  A tire's section height is the distance from the tire's inner rim to the outer tread surface.

• Section Width:

  It is the width of the tire, typically measured in millimetres.

• Calculation:

  To calculate the section height, multiply the aspect ratio percentage by the width. For example, with a 70% aspect ratio and a section width of 185mm, the section height would be 70% of 185mm and 129.5mm.

• Impact on Tire Sidewall:

  The aspect ratio significantly influences the height of the tire's sidewall. A higher aspect ratio produces a taller sidewall, while a lower aspect ratio yields a shorter sidewall.

• Performance Implications:

  The aspect ratio affects several aspects of tire performance, including ride comfort, handling, and the tire's ability to absorb road irregularities.

• Customization:

  Some drivers may choose tires with specific aspect ratios to customise their vehicle's performance characteristics to their preferences.

Conclusion

If you were pondering the question “What is tyre aspect ratio?”, we hope this article has helped. It is a crucial dimension that indicates the relationship between the height and width of a tire's sidewall. hen selecting tyres for your vehicle it’s essential to ensure that you buy the correct aspect ratio as specified by the manufacturer to ensure safe driveability. Ensuring the correct tyre aspect ratio helps maintain vehicle stability and reduces the risk of accidents, which can lead to fewer car insurance claims.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information

Have you ever wondered how do airbags work? Airbags are vital safety components in modern vehicles that protect occupants during collisions. The fundamental working principle of an airbag is remarkably swift and effective. The entire process of an airbag deploying unfolds in mere milliseconds, faster than the blink of an eye, to provide a cushioning effect and reduce the force of impact on vehicle occupants. So if you’re wondering how does an air bag work, read on to learn more.

Working of an Airbag

Here, you can learn how do airbags work in detail:

• Sensor Activation:

  Airbags are triggered by sensors strategically placed within the vehicle, typically in the front of the car, to detect front-end collisions.

• Collision Detection:

  When the sensor detects a collision with significant force, it sends an electric signal.

• Chemical Reaction:

  The electric signal initiates a chemical reaction involving a solid fuel.

• Gas Generation:

  This chemical reaction rapidly generates nitrogen gas.

• Inflation:

  The nitrogen gas fills the Airbag within milliseconds.

• Protective Role:

  The inflated Airbag cushions reduce the force of impact between the vehicle occupants and hard surfaces like the steering wheel, dashboard, or windshield.

• Fast Response:

  The entire process, from sensor activation to full airbag inflation, occurs in a fraction of a second, providing immediate protection to the occupants.

• Harmless Gas:

  The nitrogen gas used is harmless, ensuring the safety of the vehicle's occupants during airbag deployment.

Conclusion

If you were pondering the question “how does an airbag work in a car” we hope this article has helped. It is designed to safeguard vehicle occupants during collisions. The swiftness and efficiency of airbag deployment make them a crucial safety feature, significantly contributing to the protection of individuals in the event of accidents on the road. In the event of a collision where airbags are deployed, comprehensive car insurance can help cover the cost of airbag replacement and vehicle repairs.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information

Despite the launch of electric vehicles, diesel-run cars are still pretty popular on Indian roads. The market for diesel vehicles is booming as they represent a great opportunity to save money while enjoying superior driving experience. In this article, we’ll explore some of India's top diesel mileage cars in India that offer power-packed engines and stylish designs

What are the Best Mileage Diesel Cars in India?

Tata Harrier

This vehicle has a 2-litre engine that produces 170PS and 350Nm of torque. It comes with both a 6-speed manual and an automatic gearbox. The manual has a mileage of 16.80 kmpl, while the automatic has a mileage of 14.60 km per litre. 

Tata Nexon

This is one of the most talked-about vehicles in India at the moment. It had a 1497 cc engine with a 7-speed DCA gearbox. The mileage of this five-seater can reach 25.4 kmpl, depending on the model and, of course, the fuel type.

Mahindra Thar

This 44 vehicle has already captured the attention of car enthusiasts seeking a vehicle with a studded look and power-punched performance. It comes in five diesel variants, with mileage going up to 15.2 kmpl. 

Kia Sonet

It is a compact SUV that has made ripples in the Indian automotive market since its release in 2020. It has a 1.5-litre diesel engine with two output options: 100 hp manual and 115 hp automatic. The manual model achieves a mileage of 24.1 km/litre.

Tata Altroz

The Tata Altroz is a high-end hatchback that has received accolades for its safety, design, and performance. It is driven by a 1.5-litre diesel engine that produces 90 horsepower and 200 Nm of torque. The Altroz has a fuel economy of 23.64 km/litre.

Conclusion

Diesel cars are a great choice for anyone who wants smooth performance. The best mileage diesel cars in India offer high fuel efficiency without compromising on performance, comfort, or safety. Whether you are looking for a crossover car, a hatchback, or a compact SUV, you can find good mileage diesel cars in India that suit your needs and budget from the list above. Opting for comprehensive car insurance ensures that your diesel car, known for its performance and mileage, is protected against potential accidents or damages.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information

Driving safely in India requires more than just good road sense; it also demands an understanding of your vehicle, including its tyres. Many people may find themselves baffled when they look at the numbers and letters imprinted on the sidewall of their tyres. However, fear not! Deciphering these codes is not as complicated as it seems. We’ll discuss how to read tyre measurements in the next section.

How Do You Read Tyre Sizes?

To read your tyre size, first look at the tyre's sidewall. You will notice an alphanumeric series representing the tyre's dimensions and specifications. For example, 185/55 R 15 81H.

• The first number (185) is the tyre width in millimetres. It measures the distance from one sidewall to another. The wider the tyre, the more grip and stability it provides, but it also increases the rolling resistance and fuel consumption.

• The second number (55) is the aspect ratio of the tyre. The percentage of the tyre width makes up the height of the sidewall. When the aspect ratio is low, it means the tire's sidewall is shorter and firmer.

• The letter (R) indicates the tyre construction. Here, R stands for radial, the most common type of tyre construction nowadays. Radial tyres have cords that run perpendicular to the direction of travel, which makes them more flexible and durable than other types of tyres.

• The third number (15) is the rim diameter in inches. It is the size of the wheel that fits the tyre. Always match the rim diameter with the tyre size to ensure proper fitment and safety.

• The fourth number (81) is the load index of the tyre. It is a numerical code indicating the maximum weight the tyre can carry at a specified speed.

• The last letter (H) is the speed rating of the tyre. It indicates the maximum speed that the tyre can sustain at a specified load. 

Conclusion

If you ever wondered how do you read tyre sizes, we hope this has helped. Tyre size is a crucial factor that affects your vehicle's performance, safety, and fuel efficiency. Knowing how to read tyre sizes in India allows you to choose the right tyres for your car or bike that suit your driving style and conditions. Choosing the right tyre size and maintaining it properly can help reduce wear and tear, which in turn can lower potential claims on your car insurance policy for tyre-related issues.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information

Introduction       

In the world of internal combustion engines, technological innovations have continuously improved fuel delivery systems to enhance efficiency and performance. One such innovation is Multi-Point Fuel Injection (MPFI). This system is pivotal in optimising combustion, making engines more fuel-efficient and environmentally friendly. Here, we will answer what is multi-point fuel injection.

Understanding Multi-Point Fuel Injection  

Multi-Point Fuel Injection (MPFI) is a sophisticated method of delivering fuel to an internal combustion engine. Unlike its predecessor, the carburettor, MPFI ensures the engine receives the precise fuel it needs for combustion. The system accomplishes this by injecting fuel through multiple ports on the intake valve of each cylinder in the engine.

These ports work harmoniously to deliver the optimum quantity of fuel at precisely the right time to each cylinder. This precision is crucial because it ensures that the air-fuel mixture is consistently ideal for combustion, improving engine performance and fuel efficiency.

The benefits of Multi-Point Fuel Injection are numerous. First and foremost, it enhances fuel efficiency. The engine operates more efficiently by delivering the correct amount of fuel to each cylinder at the right time, reducing fuel wastage and improving miles per gallon. Hence, in turn, it contributes to reducing harmful emissions.

MPFI also enhances engine performance by providing a more controlled combustion process. It leads to better power output, smoother idling, and reduced engine vibration. Moreover, MPFI ensures a more reliable cold start, making your engine more dependable even in extreme weather conditions.

Conclusion

Now you have learned what is multi point fuel injection system. It is more than just a technological marvel; it's a game-changer for internal combustion engines. By delivering fuel with precision and timing, MPFI optimises engine performance and efficiency. This innovation is a testament to our commitment to a greener future and a glimpse into the ever-evolving world of automotive technology. It's safe to say that with Multi-Point Fuel Injection, the road ahead is smoother and cleaner. With advanced systems like MPFI improving vehicle performance, car insurance ensures that any potential repair costs related to engine issues are covered, offering you peace of mind.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information

Introduction

When it comes to taxes, every deduction matters. Car owners often wonder if is car insurance deductible on taxes. The answer is both a 'yes' and a 'no.' The tax deductibility of car insurance depends on various factors. Here, we will explore the scenarios in which car insurance can be deductible on taxes and help you navigate this intricate landscape.

Can Car Insurance be Deductible on Taxes?         

The deductibility of car insurance on taxes largely depends on the purpose for which you use your vehicle. Here are two scenarios that explain when you can claim the deduction of your car insurance premiums:

Scenario 1: Business Use

If you use your car for business, you may be eligible to deduct some of your car insurance premiums. It applies to self-employed individuals and employees using their vehicles for work-related tasks. You must maintain meticulous records of your business-related car expenses, including insurance premiums, to claim this deduction.

Scenario 2: Medical Expenses

In some situations, car insurance premiums can be tax-deductible as part of medical expenses. It typically applies when your vehicle is specially equipped to accommodate a disabled individual. However, the medical expenses deduction is subject to a threshold – you can only deduct the amount that exceeds a certain percentage of your adjusted gross income. You must consult a tax professional to ensure you meet the necessary criteria for this deduction.

Conclusion   

As we explore the question, ‘Is car insurance deductible on taxes?’, it is evident that the tax deductibility of car insurance is a multifaceted issue. While it may not be deductible for the average car owner, specific scenarios, such as using your vehicle for business purposes or adapting it for medical needs, can open the door to potential deductions. Understanding the nuances of car insurance deductibility can make a significant difference when tax season arrives. It's advisable to consult a tax professional to ensure you make the most of any eligible deductions.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information

Introduction

Motor insurance, an essential shield for your vehicle, comes with many terms and conditions. One such aspect that often leaves policyholders with questions is the concept of compulsory deductibles. If you are wondering what is compulsory deductible in car insurance, this blog will answer your query. While it may seem daunting, understanding compulsory deductibles in motor insurance is crucial to making informed decisions about your coverage. In this blog, we will break down the essentials of compulsory deductibles, helping you navigate the intricacies of motor insurance.

Meaning of Compulsory Deductible in Car Insurance     

As the name suggests, a compulsory deductible is a mandatory component of your motor insurance policy. Under this clause, the insured individual must pay a predetermined amount towards any claim they make. The Insurance Regulatory and Development Authority of India (IRDAI) has set specific limits for compulsory deductibles in motor insurance. As per these regulations, the compulsory deductible is INR 1000 if the car's cubic capacity does not exceed 1500 and INR 2000 if the car has a cubic capacity greater than 1500.

This concept aims to create a sense of responsibility among policyholders. By having a mandatory deductible, individuals are discouraged from filing small or frivolous claims, which can lead to increased administrative costs for insurance providers. It helps control costs and encourages policyholders to focus on cautious driving practices.

While the idea of compulsory deductible may seem daunting, it has advantages. It often results in reduced premiums, as insurance companies appreciate the policyholders' commitment to share a portion of the claim.

Conclusion

Now you have learned what is compulsory deductible in car insurance. It is a fundamental concept in car insurance, and understanding it is crucial for all policyholders. While it may require policyholders to contribute to their claims, it ultimately benefits the entire insurance ecosystem. So, the next time you review your motor insurance policy, don't be daunted by the term 'compulsory deductible'; instead, consider it contributing towards responsible and sustainable motor insurance.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Cruise control is a feature in cars used during long periods of travel. Therefore, before embarking on that long road trip, it is essential to ask how does cruise control work on a car. This feature enhances vehicle fuel efficiency and reduces driver stress by maintaining a constant speed. Continuous speed fluctuations typically lead to increased fuel consumption.

How Does The Cruise Control System Work?

Cruise control systems work differently based on the age of your vehicle.

• Cruise Control Function in Older Car Models: Originally, this system employed a cable to manage the accelerator (throttle valve). It regulated the vehicle's speed by activating the throttle through an actuator (also controlled by a cable). The throttle valve governs the engine's power and speed output. Consequently, the system adjusted the throttle position automatically based on the speed set by the driver.

• Cruise Control Function in Newer Car Models: If you’ve recently purchased a new vehicle, it is necessary to ask: “How does my car cruise control work?” to avoid fuel wastage. Newer cars utilise electronic cruise control systems. Instead of using a cable, these systems communicate with the throttle through multiple sensors linked to a computer known as the Electronic Control Unit (ECU). When you set a speed, the ECU calculates the necessary throttle position and activates it wirelessly.

Cruise Control can be activated by a push of a button, usually found on the steering wheel or dashboard of your car.

Conclusion

The cruise control system should be operated when the roads are clear. A car at a constant speed may encounter accidents if not exercising due precaution. It is crucial for car owners to acquire a car insurance policy to protect against cases of accident, theft, or other damage to the vehicle.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.  

Congratulations on taking the significant step of becoming a car owner! As you proceed on this exciting journey of newfound independence and mobility, one essential aspect you must address is purchasing new car insurance for the first time. It is a pivotal moment in your life, and understanding the ins and outs of how to buy car insurance is crucial. Insurance ensures your vehicle and your financial well-being are adequately protected. 

Let’s understand the steps involved in buying four-wheeler insurance for the first time.

Steps to buy car insurance for the first time

You can buy car insurance by considering the factors below.

Determine the level of coverage you require by considering factors like your vehicle’s value, budget and driving habits. Are you in search of fundamental liability insurance or extensive protection? Assessing your needs will give you a clear understanding of your requirements.

Collect essential documents, such as your driver’s license and vehicle registration certificate. This information is a must during the process.

Shop around for reputable insurance providers. Compare their rates, coverage options, customer reviews and financial stability to make a well-informed decision.

Reach out to multiple insurance companies for quotes based on your specific needs. Ensure you provide consistent information to get accurate comparisons.

Familiarise yourself with the different types of coverage, including liability, collision and comprehensive covers. Know the minimum coverage requirements in your state.

Decide on a deductible amount, the sum you will pay out of pocket in case of a claim. Opting for higher deductibles commonly leads to reduced insurance premiums.

Once you have selected a suitable policy, complete the application process and make your initial premium payment. Ensure your coverage is active before driving your vehicle.

Regularly review your policy to ensure it suits your changing needs and remains affordable. Make payments on time to avoid coverage lapses.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

When selling your car, several factors come into play to determine its value. One such critical factor is the IDV in car insurance. While IDV primarily calculates insurance premiums and claims, it also holds significance when you decide to sell your vehicle. Understanding how IDV matters in your car's resale and help you secure a better deal. In this blog, we'll delve into how IDV affects the sale of your car and why it should be considered when parting ways with your beloved vehicle.

How Does IDV Matter While Selling Car

The Insured Declared Value (IDV) is typically associated with car insurance policies, but its influence extends beyond just insurance. Here's why IDV matters when you're planning to sell your car

• Price Negotiation

Potential buyers often consider the IDV in car insurance, as a reference point when negotiating the purchase price. A higher IDV can make your car seem more valuable, allowing you to ask for a higher selling price.

• Trust Factor

A well-documented IDV can build trust between you and the buyer. It assures them that you've maintained and insured your car adequately, reducing concerns about hidden issues.

• Selling Price

While IDV doesn't directly dictate the selling price, it can be a starting point for negotiations. Buyers may use it to gauge whether your asking price aligns with the car's perceived value.

• Insurance Transfer

When selling your car, you must transfer the car insurance policy to the new owner or cancel it. Understanding the IDV helps parties determine the policy's value and ensures a smooth ownership transition.

• Resale Value

A car with a well-maintained insurance history, including a consistently updated IDV, may have a better resale value. Buyers often prefer vehicles with a documented insurance history, which can positively impact resale.

• Market Perception

A car with a higher IDV can be perceived as being in better condition and well-cared for, potentially attracting more buyers and leading to a faster sale.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Updated on 2 Jan 2026

The Insured Declared Value (IDV) is simply the current market value of your car. It is the highest amount that your car insurer will offer in case of a total loss, damage beyond repair or theft of your insured car. The IDV of a car should be declared at the time of buying or renewing a car insurance policy. A higher IDV in car insurance means a higher premium for your policy.

With time, owing to depreciation, the IDV of the car reduces. Consequently, car insurance premiums as well as the maximum sum insured also go down. However, even as the IDV decreases over time, there are ways to increase it to get a better sum insured. In this blog, we will discuss ways to increase the IDV of your car so that you are adequately covered in case of complete damage or total loss of your car.

Steps to increase the IDV of a car

Here is how you can upgrade the insured declared value of your car so you don’t miss out on receiving adequate cover:

1. Upgrade your car's accessories

Adding high-quality accessories like alloy wheels or advanced security features can enhance your car's market value. This will subsequently increase the IDV of your car.

2. Install anti-theft devices

Insurance companies offer discounts on policies for cars equipped with anti-theft devices. Installing a GPS tracker, alarm system or immobiliser makes your car safer against potential theft risks and thus increases its IDV.

3. Opt for zero depreciation cover

IDV in car insurance decreases because of the applicable depreciation rates. You can stay cushioned against this reduction in your car’s value by buying zero-depreciation add-ons. This will ensure that your car's IDV remains higher. The car insurance policy will account for the full value without depreciation.

4. Choose a higher IDV during policy renewal

You can choose a higher IDV within the set limits of your sum insured while renewing your car insurance policy.

5. Drive carefully

Safe driving habits can indirectly affect your car's IDV. Drive carefully to avoid accidents and mishaps. This will help you maintain your car better, which can help you negotiate a higher IDV in car insurance with your insurer.

6. Document vehicle modifications

If you have made any significant modifications to your car, such as engine upgrades, make sure you document them properly. These modifications can increase the value of your car. This will increase the car’s insured declared value.

Common mistakes to avoid when setting IDV

Setting an inaccurate IDV for insurance can lead to financial losses at the time of a claim. Here are some of the common mistakes that car owners commit:

1. Overvaluing IDV

Several car owners intentionally increase the IDV in the hope of getting a better payout. But it also means a higher premium and claim disputes or rejection. The insurer will pay for the car at the current market value, so an overvaluation only hampers the process.

2. Undervaluing IDV

Car owners also undervalue IDV to pay a lesser premium. Although it may lower the immediate expenses, doing so can lead to inadequate compensation. The insurer will pay less than the market value, making it tough for you to replace the car with a similar model.

3. Missing IDV renewal

Failing to annually adjust the IDV is a common mistake that leads to lower payouts. Updating the value is crucial to align your car’s value with the market standards.

How IDV impacts your car insurance premium

An IDV directly impacts the insurance premium paid for your car. Any adjustment to the IDV also changes the annual premium payable. A high value increases the premium while a low value decreases it. Additionally, the current IDV affects your claim payout.

That’s why it is important that you calculate the IDV accurately.

Tips to balance IDV and insurance cost effectively

Here is how you can calculate an accurate IDV for your car:

• Understand the actual value: One should know the real-time market value of their car. It helps select the right IDV, or the insurance cost gets affected.
• Estimate future depreciation: Consider the upcoming depreciation so you can choose the IDV that aligns with it.
• Balance cost and coverage: Choose an IDV that offers adequate coverage for the car without excessive premiums. It helps you avoid overpaying and still cover the payout in case of theft or damage.
• Use online tools: Use an IDV calculator to get an estimate of the right value for your car. It will help pay a sufficient premium without reducing the coverage.

Role of car insurance policy in maximising IDV value

The IDV determines the maximum claim in case of total loss or theft. While some car owners choose a low IDV to reduce their premiums, it can hamper their compensation in the future. By choosing a trusted car insurance online and declaring an IDV that reflects your car’s current market value, you ensure better protection and a fair claim payout.

Conclusion

Setting the right IDV helps provide the right protection to your car in the long run. So, it is always recommended not to undervalue or overvalue it and take necessary steps to improve it. Whether you adjust the IDV online or offline, the key is to balance premiums and coverage. That’s why it is best to partner with an insurance company that takes care of your requirements. For personalised guidance, fill out the form on this page, and our experts will reach out to you.

FAQs

1. Is IDV important for car insurance?

IDV makes sure you receive accurate compensation in case the car is severely damaged or stolen.

2. How much IDV is reduced annually?

The IDV depends on a standard depreciation rate, which decreases as the vehicle ages.

3. What happens if IDV is too high?

An overvalued IDV increases the premium cost and may also lead to claim refusal or dispute.

4. Can I sell my car more than the IDV value?

Yes, you can sell your car at a higher value than the IDV, as there is no direct relation between the two.

5. How to calculate IDV in car insurance?

IDV is calculated by reducing depreciation from the vehicle’s selling price and accessories.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

The significance of Insured Declared Value (IDV) in car insurance cannot be overstated. Understanding the meaning and significance of IDV offers peace of mind, ensuring your vehicle is safeguarded against unforeseen events. When you purchase or renew your motor insurance policy, a premium is set, influenced by various factors, with IDV being crucial. IDV in car insurance represents the highest amount an insurer will pay in case of theft or severe damage, reflecting your car’s current market value. This blog delves deeper into why IDV matters in car insurance policy and how it’s calculated.

Benefits of IDV in car insurance

• Determining Coverage and Premium

IDV in car insurance plays a pivotal role in establishing the extent of coverage you receive and the corresponding premium that you will pay. It helps strike a balance between comprehensive protection and affordability. A higher IDV results in a more extensive range but comes with a higher premium, while a lower IDV reduces coverage but also lowers the premium cost.

• Accurate Compensation

If your car is stolen or suffers severe damage beyond repair, IDV ensures that you receive fair and accurate compensation. Insurance providers pay out an amount equal to the IDV, which reflects your car’s current market value.

• Total Loss Scenario

When your car sustains damage to the extent that it’s considered a total loss (usually above 75% damage), the insurance provider pays the entire IDV amount. It ensures that you are adequately reimbursed for your loss.

• Risk Assessment

IDV directly correlates with the risk involved for the insurer. A higher IDV indicates a higher market value for your car, which translates to a more considerable risk for the insurance company. This information is crucial for the insurer to determine the appropriate premium and assess potential claims.

• Customised Coverage

IDV allows policyholders to customise their coverage based on their vehicle’s value and budget. You can choose an IDV that aligns with your car’s market worth, ensuring you are neither overinsured nor underinsured.

• Negotiating Premiums

In some cases, insurance providers and policyholders may mutually agree to undervalue the car’s IDV. It can lead to reduced premiums for the insured while still providing adequate coverage. It offers flexibility in tailoring the insurance policy to specific needs.

• Protection Against Depreciation

IDV accounts for depreciation, compensating you for reducing your car’s value over time. It means that even as your car ages, you can still receive a reasonable payout if it’s severely damaged or stolen.

• Peace of Mind

Knowing that your car is insured with an appropriate IDV provides peace of mind. You can drive confidently, knowing you’re financially protected in unforeseen events.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Updated on - 30 Dec 2025

Every car loses value as it gets older, and this changing value plays a major role in how your insurance policy works. One key factor that reflects this changing value is the Insured Declared Value (IDV). IDV is the current market value of your car as decided by the insurer. It represents the maximum amount you can receive if your car is stolen or completely damaged.

As a policyholder, you should be aware of how this affects insurance payouts. This blog takes you through everything you need to know about depreciated IDV in car insurance, helping you understand its role while choosing or upgrading your policy.

Depreciated IDV meaning

Depreciated IDV refers to the depreciation or reduction in the amount of your vehicle. The value of the vehicle decreases with wear and tear, as well as advancements and trends in the market. When calculating IDV in car insurance, this reduction is factored in. This IDV is applied to the actual cost of the vehicle to finalise the amount of depreciated IDV. The depreciated IDV gets calculated with the help of a simple formula:

Depreciated IDV = IDV - Depreciation Amount

As far as the depreciation amount is concerned, the rate is standardised and set by IRDAI (Insurance Regulatory and Development Authority of India).

To understand the depreciated IDV, let’s take a look at how IDV is calculated. The following components of the car are taken into consideration while calculating the IDV in your car insurance policy:

1. Car type

The category of the vehicle determines its IDV, such as SUV, MUV, sedan or hatchback. Moreover, SUVs have higher IDV values than sedans, which have higher IDV values than hatchbacks.

2. Make and model of the car

The brand and the model of the car directly impact the IDV. Different brands have different values within the same vehicle type.

3. Age and depreciation cost

The age of the vehicle and depreciation cost directly impact the IDV value of the car. New vehicles have higher IDV and less depreciation cost, and vice versa.

4. Registration location

The place where the car is registered also affects the car’s IDV because of the varying showroom prices of the car company across the region.

5. Accessories

Even the accessories you add to your vehicle depreciate over time. This depreciation in the added accessories is also taken into consideration while calculating the IDV.

Importance of understanding the depreciated IDV for policyholders

Understanding depreciated IDV is important because it determines the maximum amount you receive if your car gets stolen or completely damaged. It helps you avoid being underinsured or paying for unnecessary coverage by reflecting the car's current market worth rather than its initial cost. Being aware of depreciation helps you strike a balance between cost and protection because IDV has an impact on your premium.

Calculating IDV also help you make better renewal decisions and choose add-ons like zero depreciation more effectively, ensuring your car insurance gives proper financial security.

How depreciated IDV impacts your car insurance premium

Depreciation is the primary factor that reduces your car's IDV each year. The IDV drops according to the vehicle's age and market value. A lower IDV means you'll pay a lower premium because the insurer is covering a lower value. It also lowers the reimbursement you get if the automobile is stolen or deemed a total loss. In short, higher depreciation lowers both your premium and the compensation you can claim.

Tips to maintain a good IDV for your vehicle

Maintaining a good IDV helps keep your value strong and ensures better coverage during claims. Here are a few smart habits to maintain a good IDV:

• Keep your vehicle well-maintained to slow down wear and tear.
• Repair dents, scratches and minor damages on time.
• Avoid installing non-approved accessories that do not add value to IDV.
• Choose genuine parts during repairs to ensure the vehicle retains its market value.
• Update your policy on time to avoid lapses that may reduce the assessed value.
• Use add-ons like zero depreciation to protect IDV during claims.
• Keep service records handy to show proper upkeep when negotiating IDV at renewal.

Choosing the right car insurance policy with optimal IDV

Choosing the right car insurance policy with optimal IDV starts with understanding your car’s current market value. The IDV in car insurance should not be set too high or too low. A very high IDV increases your premium unnecessarily, while a very low IDV reduces your claim amount in the event of total loss or theft.

Compare policies from different insurers, check the IDV they offer and choose one that matches the realistic value of your vehicle. A balanced IDV ensures fair premiums and strong financial protection.

Why depreciated IDV matters during a car insurance claim

Depreciated IDV matters during a car insurance claim because it directly decides how much reimbursement you will receive if your car is stolen or declared a total loss. Since IDV reflects your car’s current market value after depreciation, the insurer will use this amount to calculate your final payout. A lower IDV means a smaller claim settlement. While a well-set IDV ensures fair compensation.

Conclusion

Understanding depreciated IDV gives you more control over your car insurance policy. It enables you to make more informed decisions, whether you're renewing your policy, purchasing add-ons or determining if the premium you're paying aligns with the value of your vehicle. Knowing how IDV works, you can avoid guesswork and prevent losses during a claim.

So, you should choose a car insurance policy that strikes the right balance between value and financial protection. Always focus on a policy that suits your needs, budget and the actual value of your vehicle. If you need expert guidance to help you select the right plan for your needs, fill out the form provided on this page.

FAQs

1. Can you negotiate the IDV in my car insurance policy?

Yes. Insurers allow a small range for adjusting IDV. You can increase or decrease it within limits, but it must still match your car’s realistic market value.

2. Does a high IDV always mean better coverage?

A higher IDV increases your premium. It helps during total loss claims, but it may not be necessary if your car is old and has low resale value.

3. How does IDV affect add-ons like zero depreciation?

Zero depreciation doesn’t change the IDV, but it helps you get a higher repair payout by removing depreciation cuts. Your IDV still applies only in total loss claims.

4. Will installing accessories increase IDV?

Only if they are declared and approved, factory-fitted accessories that affect IDV automatically. Extra accessories increase IDV only when you declare their value in the policy.

5.Does IDV matter in every type of insurance claim?

IDV matters only in total loss and theft claims under a comprehensive or own damage plan. For a standard repair claim, the payout depends on the extent of the damage and the cost of the parts. In third-party claims, IDV is not used at all because it does not cover damage to the owner's vehicle.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Zero depreciation car insurance is also known as nil depreciation or Bumper-to-Bumper insurance. In this type of insurance, the depreciation factor is not taken into consideration, giving complete protection to your vehicle. If, by chance, your vehicle gets damaged in a collision, the insurer will not deduct the cost of depreciation from your insurance cover. Covering the cost of all the damaged parts of the car will be the insurance provider's responsibility. However, tires and batteries will remain excluded from the coverage. There is also a limit on the number of claims you can make in a year.

Fibre, rubber and metal parts get covered in zero depreciation car insurance, reducing any expenses incurred in repairing these items following damage.  

This blog will cover why you should buy zero depreciation car insurance.

Why Buy Zero Depreciation Car Insurance?

·         You own a luxury car

Zero depreciation car insurance is a must for luxury cars as these vehicles comprise expensive components. Moreover, the spare parts are equally expensive, so to reduce such expenses, you should opt for this type of insurance.

·         You are new to driving a car

When new to driving, you are more likely to ram your vehicle here and there. Zero depreciation car insurance saves you from expenses incurred for repairing dents and normal wear and tear of the car.

·        You need to drive in accident-prone areas more

If you are to drive frequently to those regions that are known as accident-prone areas, there is the likelihood that you may damage your vehicle. It saves you from incurring additional charges in case of repair for your car.

·         If you are willing to cut your expenses and save money

Zero depreciation car insurance is a must if you want to cut on the expenses from your pocket. It’s a boon for both you and your vehicle that this applies to new cars and those up to 5 years old. It significantly reduces expenses and helps you maintain your vehicle in good shape.

When buying zero depreciation car coverage for your vehicle, buy car insurance online for convenience and bagging a better deal.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Comprehensive car insurance is for car owners looking for complete vehicle protection in case of damages due to accidents, theft, third-party liability, natural calamities, fire, etc. It protects against both own damages to the car and third-party liabilities.

So, it covers the third party also in case of death, accident or car damage. This type of car insurance policy provides your vehicle all-around protection while your car is on the road or, say, hit by natural calamities. Here, we will discuss how to calculate the premium for a comprehensive car insurance policy.

Steps to Calculate Comprehensive Car Insurance

All you need to know is certain basic things about your car to calculate comprehensive car insurance, such as the current value of your vehicle, the required repair cost and the deductible amount.

• Evaluate Vehicle Value:

  Start by determining the current market value of your vehicle. It is easier to determine for a newly purchased car where it will be equal to the car price. Otherwise, use online resources or consult with your insurance provider. This value serves as a baseline for your coverage.

• Choose a Deductible:

  Next, select an appropriate deductible amount. Deductible is the portion you will pay out of pocket before insurance coverage kicks in. Higher deductibles generally result in lower premiums and vice-versa.

• Consider Optional Coverage:

  Next, consider your additional coverage requirements. These could include coverage for personal belongings in your vehicle. Decide whether these extras are necessary for your specific needs and budget.

• Search for Discounts:

  Look for potential discounts. Various insurance companies provide different types of discounts, especially online, like safe driver discounts, multi-policy discounts, etc. These can significantly reduce your premium.

• Analyse Driving Habits:

  Your driving habits can influence your car insurance rates. You may be eligible for lower premiums if you drive fewer kilometres annually or have a cleaner driving record.

• Compare Insurance Providers:

  Make sure to obtain quotes from various insurers to get the most competitive rates. Prices can vary significantly between insurance companies. Hence, comparing quotes is essential.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Comprehensive car insurance in India provides extensive coverage for your vehicle. It includes coverage for third-party liability (in case you damage someone else’s property or injure them) and protects your car extensively.

Hence, you must have a clear understanding of comprehensive car insurance meaning. So, let’s take a deep dive and decipher what this category of insurance offers and why investing in it is necessary.

Comprehensive Car Insurance Coverage

A comprehensive car insurance policy is like a safety net for your vehicle, covering a wide range of risks beyond simple accidents. Here’s how it works.

Protection from Various Threats:

Comprehensive car insurance is a wise choice in a country like India. Here, the road conditions and unexpected events can pose significant vehicle risks. The policy covers damages caused by accidents, theft, fire, natural disasters like floods and earthquakes, vandalism and animal collisions. This means whether your car gets damaged in a road accident, stolen, or affected by a natural calamity, your car insurance policy will step in to help cover the repair or replacement costs.

Claim Process:

If any of these events happen to your car, you can file a claim with your insurance company. They will assess the damage and, if it is covered, offer funds to repair or replace your vehicle.

Deductible:

You will usually have to pay a deductible, which is an agreed-upon amount, before your insurance kicks in. This is like your contribution to the repair or replacement cost.

Exclusions:

It is essential to know the exclusions and limitations in your car insurance policy, such as regular wear and tear, mechanical breakdowns or damage caused by uninsured drivers.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

Before you look for the answer to “Is it worth getting comprehensive car insurance?” let’s first try to understand the meaning of this category of motor insurance policy.

What Is Comprehensive Car Insurance?

In India, owning a car is an entirely different feeling. It allows you to embark on adventurous trips with friends, easily commute to a distant office or navigate through the city. However, do you know that driving a car comes with various risks? What if someone collides with your vehicle? What if it gets stolen from the parking lot? Even a fleeting thought of these scenarios can make us anxious. But with comprehensive car insurance, you can bid farewell to these worries.

Comprehensive car insurance features a combination of a liability-only policy and own damage insurance. It covers the repair costs if your insured car gets damaged by a natural disaster, fire or a malicious act by humans. 

Even with extensive coverage, many ask if this policy is worth it. Let us find out.

Is It Worth Buying Comprehensive Car Insurance?

Buying comprehensive four-wheeler insurance in India is a wise decision. Here, we present the reasons behind this.

A comprehensive motor insurance policy offers extensive coverage. In other words, this car insurance policy in India offers a wide-ranging safety net for your vehicle. It fulfils the legal requirement of third-party liability coverage and goes above and beyond to protect your car from various risks.

This category of car insurance policy provides safety for high-value cars. For owners of new or expensive cars, this insurance is highly beneficial. It safeguards your substantial investment, covering repair or replacement costs in case of damage.

You can add flexible add-ons that widen the scope of your policy. You can invest in zero depreciation, engine protection and roadside assistance, to name a few add-ons you can opt for and customise your plan. This gives you the flexibility to tailor your policy to your specific needs.

A policyholder who invests in a comprehensive motor insurance plan can gain benefit from the No Claim Bonus of the policy. By maintaining a claim-free record, you can accumulate NCB. This leads to premium discounts in subsequent years. We may say that comprehensive coverage encourages responsible driving habits and rewards you for them.

A comprehensive policy offers protection in high-risk areas. In other words, this policy becomes even more valuable if you reside in an area with a higher risk of accidents or vehicle-related crimes. It shields you from the financial burden of unexpected incidents.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.