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 attempt to choose a higher IDV to your benefit, but the Insurer may not accept the value. Insurance companies expect that the IDV chosen by you is close to the present value of the car. They accept ID Values requested by you within a band of maximum and minimum values, which is expected to be closer to the market value as per Make, Model, Variant and year of manufacture of your vehicle. So, even if you opt for a higher 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.