How to choose the right insured declared value for your car?
To set the
correct IDV for your car, you should understand how depreciation works for your
aging car. The IRDAI has a fixed depreciation schedule for cars as per their
age. This schedule is used by the insurance companies to calculate the
depreciation percentage that will be deducted from the market value to
calculate the right amount of IDV
Insurance
companies calculate car insurance premiums on the basis of IDV. If you are
wondering whether higher IDV is better in car insurance, read on..
benefits of
higher idv in car insurance
Is having
high IDV considered to be better in car insurance?
The premium
of your car insurance policy is determined on the basis of its insured declared
value i.e. its existing market value. If you are thinking if higher IDV will
benefit you at the time of claim then read on to know about how insured
declared value works and if having a high IDV makes sense or not.
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