IDV, or Insured Declared Value, is a term used in the insurance industry to refer to the current market value of the insured vehicle. It’s the maximum amount that an insurer agrees to pay the policyholder in case of theft or total loss of the vehicle. In simple terms, IDV is the amount that an insurer would pay the policyholder if their car is stolen or damaged beyond repair.
The IDV value is calculated based on the current market value of the vehicle at the time of insurance, and takes into consideration factors such as the make, model, age, and condition of the vehicle. In general, newer vehicles will have a higher IDV value, while older or less well-maintained vehicles will have a lower IDV value. This is because newer vehicles generally have a higher market value, and therefore a larger sum would need to be paid out in the event that the car is stolen or damaged beyond repair.
It's important to note that the IDV value is not the same as the selling price or the cost of the vehicle. It is simply the maximum amount that the insurer agrees to pay in case of total loss of the vehicle. It's also worth noting that some insurers may offer to insure a vehicle for a higher IDV value, but this usually comes with a higher premium.
To ensure that you have the correct IDV value for your vehicle, it's important to provide accurate and up-to-date information about the make, model, age, and condition of the vehicle when purchasing insurance. Providing accurate information will help you get the right level of coverage for your vehicle, and ensure that you are adequately protected in case of theft or total loss.
