When you buy insurance for your car or bike, it is very essential that you choose the right IDV.
Insured’s Declared Value (IDV) is the value that you insure your vehicle for. In case of an adverse total loss due to an accident or theft of your vehicle, this is the total loss value you will receive. Obviously, it will benefit you in such circumstances to support buying another vehicle.
Insurers do not accept whatever IDV you choose
You may think that you can choose a high IDV to your benefit, which is not true. The Insurance companies do not accept any IDV as chosen by you. Each insurance company accept ID Values requested by you within a maximum and minimum range based on Make, Model, Variant and year of manufacture of your vehicle. So, even if you opt for an IDV, it is subject to acceptance by respective Insurance companies.
In case, if your vehicle is less than 5 years old, you can prefer to choose the ‘Invoice Cover’ add on. If you add Invoice Cover in your vehicle insurance, in case of total loss or theft of your vehicle, it will allow you to claim the prevailing Invoice price of a new vehicle of the same Make, Model and variant as your lost vehicle.