Let us call you back. Just share your number for a call back in less than 15 minutes

We can’t proceed without your mobile number. Help us?
Sigh. We need the reason for call back to pick the right person for the job. Help us?

Is it super urgent? Call us on our Toll Free numbers

BTW, we respond to email queries with lightening fast speed. Send email instead?


Someone from the team will get back to you ASAP!


Oh! Just in case you still need our Toll free

1800 209 9970
Also schedule a callback Also send an email

Your Claim Assistance request has been registered with us.

We will contact you before 11am tomorrow.

If its an emergency, for immediate assistance please feel free to contact our Customer Support Unit on 1800 209 9970

Know Your IDV in Car Insurance

IDV is the Insured Declared Value of the car. It is calculated based on the manufacturer's listed selling price of the vehicle minus the depreciation value that depends on the car’s age. It is the most important aspect that determines the premium of your comprehensive insurance coverage.

image title

Calculation of IDV

This IDV will be set as your maximum sum assured amount in case of total damage of your car. Just consider IDV as the current market value of your vehicle and is fully reimbursed, if you claim for a complete loss of your vehicle. Technically, IDV is calculated on the manufacturer’s listed value of the car minus the depreciation value of the car. The depreciation value of the car is based on the age of it as follows:

Plan Name % Of Depreciation
Up to 6 Months 5%
6 Months to 1 Year 15%
1 - 2 Years 20%
2 - 3 Years 30%
3 - 4 Years 40%
4 - 5 Years 50%
More than 5 years Mutually agreed value between the company and the insurance holder

Importance of the IDV

The IDV primarily determines the premium amount for the own damage coverage of the comprehensive insurance package. The larger the IDV, the greater the premium. For instance, the IDV of a brand new car will be higher than an old one, owing to a higher depreciation rate. So, the newer car will fetch a higher premium amount because of its greater value.

The premium is derived as a percentage of the IDV, and it is determined for the own damage section of coverage. Whereas the third party liability section of the premium is determined the cubic capacity of the vehicle.

Always keep a check on the IDV at the time of renewal

When your policy is up for renewal, do not just agree to pay the premium amount. Always check the IDV of your car. Make sure the premium price charged is reasonable and in tandem with your IDV. Since this is the final amount that you will get, in the event of total damage, make sure that your IDV is right.

If not, negotiate with the insurance provider and arrive at the right premium for your IDV. Keeping an eye on your IDV is ideal. If you have declared a lower IDV, you will pay a lower premium, but at the time of a total loss claim, you will not get back much.

You would then have to fork out on all your savings. So, it is always best to declare the right IDV for the optimal premium amount that you are liable to pay.


IDV is the principal value that is used to calculate the premium amount for you own damage coverage of the comprehensive insurance plan. The manufacturer’s selling price of the car is adjusted to the depreciation value of the car, to arrive at the final IDV. It is also the sum assured amount.

All insurance holders should be aware of this and make sensible decisions before they buy an insurance policy.

Get lowest quotes for Car Insurance

Avail upto 60% discount on Premium.

Please enter a valid phone number
Thanks! We will get back to you soon.

I hereby authorize Coverfox to communicate with me on the given number for my Insurance needs. I am aware that this authorization will override my registry under NDNC.

Aniket Thakker
Written by Aniket Thakker
He lives off TV shows, movies, junk food, comics and sarcasm. When he is not working as a freelance imaginary friend to other beings like him, he works as VP of Marketing at Coverfox.

Spread the love!