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 car insurance. A higher IDV in car insurance implies a higher premium for your car insurance 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. To ensure that you get adequate compensation in case of theft or loss of the vehicle, it is important to declare the right IDV.
In this blog, we will discuss ways to increase IDV in car insurance so that you are adequately covered in case of complete damage or total loss of your car.
Steps to Increase IDV Value of Car
-
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.
-
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.
-
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.
-
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.
-
Drive Carefully
Safe driving habits can indirectly affect your car's IDV. Drive carefully to avoid accidents and mishaps. This will help you to maintain your car better, which can help you negotiate a higher IDV in car insurance with your insurer.
-
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.
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 It may contain outdated data and information regarding the relevant industry.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.