Car Insurance IDV Calculator

An IDV value calculator for cars is an online tool that helps in calculating the insured declared value. With this calculator, the vehicle owner can determine the vehicle's current market value to account for depreciation.

With this value, vehicle owners will know how much compensation they will receive in the event of a total loss or damage beyond repair. By checking the IDV of the car, vehicle owners can also know the car insurance premium.

The car insurance IDV calculator uses various inputs, such as the car's make and model, IRDAI’s depreciation rate, etc., to calculate the IDV.

Also Read: Insured Declared Value (IDV) In Car Insurance

By choosing the IDV value calculator for a car, vehicle owners can make informed decisions when purchasing a plan. Here are some of the benefits of the IDV calculator for cars.

Accurate Car Market Value

One of the benefits of using the car IDV value calculator is the accurate car market value it provides. For determining the IDV of a car, the tool uses the car's age, make and model and other things. All these details help estimate the car's accurate value.

Claim Amount Determination

Another benefit of using the car IDV calculator is the accurate determination of the claim amount. With the right IDV calculator, vehicle owners will know how much compensation they will receive if the vehicle is lost and damaged beyond repair.

Accurate Premium Calculation

It also helps in determining the actual premium amount based on the car’s IDV. A vehicle with a high IDV generally pays a higher car insurance premium. A car with a lower IDV value pays a lower premium.

Time Saving and Convenient

Using an IDV calculator saves a lot of effort. You don’t have to guess the car’s market value or calculate depreciation on your own. Everything is worked out instantly, and you get a clear picture of your car’s worth and the premium you can expect.

Using a car insurance IDV calculator helps determine the vehicle's correct market value. Here is how the car IDV value calculator works.

Step 1: Open the Car IDV Calculator

To calculate the car IDV, go to the top of this page. Vehicle owners need to keep car details handy, such as the registration number, age, etc., to determine the accurate value.

Step 2: Enter the Vehicle Details

Next, fill up the details in the car insurance calculator page, such as vehicle age, make and model, variant, etc.

Step 3: Calculate the Car Depreciation

After you submit the details, the calculator applies the standard depreciation rate based on the car’s age. For example, a three-year-old car may depreciate by around 30%. This step reduces the car’s original value to reflect its current market worth.

Step 4: Calculate the Car IDV

Once depreciation is applied, the calculator shows the final Insured Declared Value. This is the amount you would receive if the car is stolen or declared a total loss. If you’ve added non-factory accessories, their adjusted value gets added separately to the final IDV.

Also Read: Car Insurance Premium Calculator

Let us understand how the IDV calculator helps vehicle owners. Devansh bought his hatchback three years ago for 8 lakh (ex-showroom). When it was time to renew his car insurance, he used an IDV calculator to determine the value of his car.

The calculator first picked the car’s original price. Then it applied the standard depreciation for a three-year-old vehicle, which is usually around 30%. After reducing this amount, Devansh’s car was valued at around ₹5.6 lakh. This became his IDV, which is the maximum amount he would receive if the car were stolen or damaged beyond repair.

Devansh had also added a few non-factory accessories, such as better speakers and a touchscreen unit. Their depreciated value was added to the base IDV, resulting in a slight increase in the final number.

Knowing these details helps Devansh decide whether to keep the same insured declared value or modify it for better coverage.

Calculating IDV is simple once you know the key factors and the formula.

Formula to Calculate IDV Value of Car

IDV (Insured Declared Value) = Manufacturer’s Selling Price - Depreciation Value of The Car

When calculating the IDV, the value of additional car accessories is also considered, especially if they are not part of the standard vehicle model. Here is how you can calculate the IDV, including car accessories:

Formula to Calculate IDV with Additional Car Accessories

IDV (Insured Declared Value) = (Manufacturer’s Selling Price - Depreciation Value of The Car) + (Cost of Car
Accessories - Depreciation on Accessories)

Impact of Manufacturer’s Selling Price white Calculating IDV

The manufacturer’s selling price is the vehicle's original cost as declared by the manufacturer, including any accessories. It serves as the basis for calculating IDV in insurance. Any depreciation is deducted from this price to arrive at the IDV.

Various factors can affect a vehicle's IDV calculation, including vehicle age, geographic location, and more. Let us discuss these factors in detail.

Car’s Age

One factor that significantly affects the insured declared value is the car’s age. Generally, the older vehicle has a lower IDV while the newer vehicle has a higher IDV. This is because vehicles depreciate over time. The age of the vehicle is generally factored into the IDV calculator to give an accurate estimation.

Manufacturer Price

Another important factor to evaluate or check the car's IDV value is the car manufacturer’s listed price. This is the price decided by the manufacturer. It can be adjusted over time based on the vehicle depreciation.

Car Accessories

Another important factor for an IDV calculator for a car is its accessories. Many vehicle owners prefer to install the premium accessories, such as audio systems, etc, which are generally not part of the car's original value. While calculating the IDV, the calculator also accounts for these accessories to calculate the correct value.

Geographical Location

Where the car is registered can also influence the IDV and premium. Some locations have higher risk factors, such as traffic density, accident rates, or theft cases. The calculator uses your registration details to estimate the value and premium more accurately.

Vehicle Condition

Although the calculator mostly relies on age and model, the vehicle's overall condition matters too. Well-maintained cars often hold better value, while cars with visible damage, wear or poor upkeep may have a slightly lower IDV. Insurers may adjust the value after an inspection if needed.

Nature of IDV

When selecting the insured declared value for the vehicle, choosing an adequate IDV is crucial, as it can affect a claim. This is why it is advisable to check the IDV of the car before buying a plan. Here is how IDV can have significant implications.

Under Insured Vehicle

When buying a car, if the car IDV is set too low, it might lower the premium, but the vehicle will be underinsured. In the event of a total loss or theft, vehicle owners need to bear the repair and replacement costs out of their own pocket if their IDV is low.

For instance, if you bought a car worth ₹10 lakh but chose an IDV of only ₹6 lakh to lower the premium. Then the car’s market value will be ₹6 lakh. In the event the car is lost or stolen, they will receive ₹6 lakh as the claim amount, and the remaining ₹4 lakh will cover out-of-pocket expenses.

Over Insured Vehicle

If, at the time of buying a car, you choose an insured declared value that is too high, it will lead to overinsurance. Furthermore, if the vehicle owner chooses an IDV higher than the market value, it leads to a higher premium as well.

For example, if your car’s actual value is ₹10 lakh but you choose an IDV of ₹13 lakh to feel more covered, your premium will increase. But during a total loss or theft claim, the insurer will still settle only up to the real market value. So you end up paying more for no additional benefit.

Also Read: Total Loss in Car Insurance

Choosing the right insured declared value can be daunting for vehicle owners. To help them out, here are the ways to choose the right insured declared value.

Know Your Car Current Market Value

When selecting the insured declared value, it is best to know your car's resale value based on make, model, and year. This gives you a good idea of what the IDV should roughly be.

Understand the Depreciation

While choosing the IDV, vehicle owners also need to understand the depreciation rate set by the IRDAI. Make sure the IDV offered matches the expected range for your car’s age. If it is too high or too low, adjust it.

Avoid Lowest IDV

At the time of selecting the IDV, avoid choosing the lower IDV to reduce the car insurance premium. If the car's insured declared value is low, you'll need to cover the expenses out of your own pocket.

Avoid Inflating IDV

Another thing vehicle owners also need to consider while choosing IDV is to inflate it. Increasing the IDV beyond the car market value will also increase the car insurance premium.

Factor Accessories

Another thing vehicle owners also need to consider while choosing IDV is accessories. Vehicle owners who have installed non-factory accessories, such as a touchscreen system or alloy wheels should add the depreciated value of those accessories to the IDV for accurate coverage.

Use IDV Calculator

A car’s value drops every year, so it’s smart to use an IDV calculator whenever you renew your policy or buy a new one. The tool quickly calculates your car's current market value by applying the correct depreciation. This helps you avoid guesswork and choose an IDV that accurately reflects the car’s true value.

Contact Representative

If you are still unsure of the insured declared value, it is best to consult with the insurance representative. The representative will guide you and suggest the IDV based on your vehicle’s age. Also, compare the quoted IDV with your market research.

Once you understand the factors that influence IDV, you can pick a value that protects you well during a total loss or theft claim. A balanced IDV keeps your premium fair and ensures you don’t face unexpected expenses later.

Also Read: Compare Car Insurance

Using a car insurance IDV calculator effectively is crucial for accurate IDV calculation. Here are some tips that can help vehicle owners.

• It is best to keep the registration year, make, model and variant ready. The more accurate the inputs, the more reliable the IDV result.
• If you have added non-factory accessories, mention them separately. Their depreciated value can change your final IDV.
• It is best to compare different IDVs for the same car. Use the calculator to see which one feels fair and balanced.
• The car’s value changes every year. Using the calculator before each renewal helps you stay aware of its updated market value.
• Make sure the age of your car is correctly entered. Even a small mistake can alter the depreciation applied.
• A lower IDV may reduce your premium, but can leave you underinsured during a total loss claim. Try to keep it close to the realistic market value.

The IDV value calculator for cars is an important online tool that helps in calculating the accurate insured declared value. Vehicle owners need to consider factors such as vehicle age, variant, and other details to determine the actual IDV.

The tool is really helpful in deciding the claim payout and premium for car insurance online. By choosing the adequate IDV, you ensure that your vehicle is protected. If you are looking to buy car insurance, TATA AIG offers a plan that lets you select IDV based on your vehicle's needs.

For instance, our third-party car insurance protects your vehicle against third-party property damage and damage caused by insured vehicles. Furthermore, our comprehensive car insurance plan protects vehicles against third-party and own-damage claims.

In addition, we offer unique add-ons such as roadside assistance, engine security, tyre security, and more to enhance vehicle coverage. Moreover, we at TATA AIG offer various other benefits, such as nationwide cashless garages, a hassle-free claim process, and 24*7 customer support. Choose the adequate IDV with our budget-friendly four-wheeler insurance plan now.