An average Indian still cherishes the dream of buying a car for a comfortable commute. Although the automotive industry has seen growth over the years in different car segments, it is still difficult to narrow it down to an average person’s requirements. The convenience of owning a vehicle and traveling is unparalleled as compared to using the crowded public transport. The availability of car loans has also made it easier for people to fulfill the dream of owning a car. But you should also know that buying four wheeler insurance online or offline is essential at the time of purchasing a vehicle. Although it is mandatory according to the government laws, you must know its terminologies and comprehensive cove
You can compare prices, four-wheeler insurance online inclusions and exclusions, but may miss out on the most critical factor, IDV. You must be aware of this factor to avoid any crisis during emergency times.
What is IDV?
IDV is Insured Declared Value, which is one of the essential factors that determine the premium amount of four wheeler insurance online. In simple words, IDV accounts for your car’s current market value. As you use the vehicle, its value depreciates with time, so does IDV. It is calculated every year where it depreciates depending upon your vehicle’s usage.
If, in any case, your car suffers a total loss, the insurance company will provide you with the claim amount based on the current IDV of your vehicle. Therefore, it becomes crucial to know about it in-depth while purchasing four wheeler insurance online.
Some Facts To Know About IDV
- Considering IDV During Car Purchase is Crucial
As said above, the insured declared value is your car’s current market value that depends upon its usage, model year, manufacturer’s evaluation, and similar other factors. It is crucial to know about the IDV during the time of purchase, as it will help you claim the insurance during the time of need. The additional accessories that you fit in the car after its acquisition are also accounted for calculating the total insured declared value when you purchase four wheeler insurance online.
- IDV Impacts Your Car’s Insurance Premiums
Many factors impact the IDV of your car, which depreciates over the years as your car ages. It directly affects your car’s insurance premium. For instance, if your vehicle gets involved in an accident and suffers a total loss, the insurance company will consider its IDV while processing your claim. Only the current IDV will be considered under your insurance premium claims. Therefore, you must always keep a check on your car’s IDV while purchasing or renewing four wheeler insurance online or offline.
- It Changes as Per Depreciation Rate
Insured Declared Value of your car decreases as it ages and usage. For instance, you bought a car in 2012 for INR 10 Lakhs, which now has the IDV of INR 7 Lakhs. The current IDV will be used to calculate the renewal premium as well as the maximum insurance benefit you can get.
- Lowering Your Car’s IDV Doesn’t Make Sense
When your insurer evaluates your car’s IDV, reducing its value deliberately is not a good idea as it can only cause a problem for you in the long run. Agreeing for a lower IDV to lower the premium of four wheeler insurance online is not a good thing as it also decreases your car’s current market value. If in case your car gets involved in a mishap, you may not be able to claim the desired amount and face losses. So, to save yourself from future hassles and worries, you must not take such decisions.
Safeguard Your Vehicle by Buying The Policy from a Renowned Insurer
Many reputable firms help you make informed decisions while purchasing four wheeler insurance online. Tata AIG is one such firm in India that has gained its customer’s trust by providing valuable services. Tata AIG car insurance reviews confirm how the company goes extra miles to serve its customers. The right choice of a car insurance policy will save you from facing losses in tough times. So, be careful when you insure your car under a vehicle insurance policy.