Step 1 – Decide the optimum Insured Declared Worth (IDV) of your automotive.
The IDV of your automotive is in impact the utmost Sum Assured of your automotive insurance coverage plan. It’s the quantity (calculated because the automotive’s market worth minus the depreciation) which is payable to you in case your automotive is stolen or your automotive is broken past repairs.
As is clear, the premium fee is set on the quoted IDV. The IDV varies throughout insurers and so does the premium fee. The choice to pick the IDV is solely on you. This chosen IDV needs to be optimum. Too excessive and also you unnecessarily pay a better premium, too low and also you get a small declare. A steadiness should be reached and an optimum degree of IDV needs to be chosen.
For choosing the optimum IDV, you may deduct the depreciation charges standardized by IRDA from the automotive’s market worth.
Car’s age Price of depreciation
Lower than 6 months 5%
6 months to 1 yr 15%
1-2 years 20%
2-Three years 30%
Three-Four years 40%
Four-5 years 50%
Assess your IDV as per your automotive’s age and choose the optimum degree.