Renewing your car insurance is a lifelong responsibility (at least as long as you own a car) and you can’t discontinue doing this activity (as long as you’re not planning to stop driving your car any longer). Hence, remember the dates and renew your car insurance without any delay. While doing that, make sure to share your IDV correctly.
What is IDV?
IDV stands for ‘Insured Declared Value’ which is basically the 'sum insured' in the car policy. IDV of a new car yet standing inside the showroom is determined in accordance with the manufacturer's listed selling price of the brand and model. However, IDV of a car outside the showroom drops by 5% percent the moment it is taken out. To give you more clarity, if the IDV of a new car (still inside showroom) is 10 lakhs, it's outside showroom IDV will come down to 9 lakh 50 thousand.
In other words, the term also stands for the amount your car is insured for. This amount serves as the basis of all settlements in the event the car is stolen or damaged beyond repair in an accident.
Read Also: Planning to Renew Your Car Insurance?
Why is it important to share IDV while renewing your car insurance?
When you renew a car insurance policy, the new premium will be calculated based on current IDV of your car. A higher IDV would attract a higher premium and vice versa. Besides, if you don't share the correct IDV while renewing your insurance, you won't be able to claim the exact value of your car from your insurer in case your car gets totaled.
