Correct IDV for Your Car Insurance?

The Insured Declared Value, or IDV, is the maximum sum insured set by the car insurance companies. It refers to the maximum claim amount that your insurer is willing to pay under your car insurance policy in the event that your vehicle is damaged in an unforeseeable incident.

If your car is stolen or totaled, your insurance company will pay the total IDV of your vehicle, as determined at the time of policy acquisition.

In a comprehensive car insurance policy, the IDV of a vehicle is a critical factor. The IDV of a vehicle has a direct impact on 2 areas of motor insurance. The first is the car insurance premium, and the second is the amount of the claim. Find out how the IDV of your motor vehicle affects your car insurance rate and the maximum claim amount you can receive.

Car Insurance Premium

The premium payable for a comprehensive car insurance policy is directly proportional to the IDV of a car. The higher the IDV of a car insurance policy, the higher the premium will be. This is why choosing an IDV value that does not result in a high vehicle insurance premium is critical.

When purchasing a comprehensive car insurance policy, keep your budget in mind. Before purchasing a car insurance plan, utilize a car insurance calculator to examine the IDV as well as the premium payable.

Maximum Claim Amount

The IDV, as you may know, is the maximum claim amount that your car insurer will pay if your vehicle is stolen or witnesses a total loss. If you choose a lesser IDV, the claim amount you get may not be enough to cover the cost of repairing or replacing your vehicle. As a result, you may have to pay money out of your own pocket in addition to the claim amount.

This could end up costing you more than you saved by buying a car insurance policy with a reduced premium. This is why you must select a comprehensive car insurance policy with an adequate IDV to cover the loss or damage to your vehicle.

Final Words…

As you can see, it is critical to purchase a car insurance policy that includes enough IDV without incurring an extravagant premium. Meanwhile, if you are looking for the best comprehensive car insurance policy, you can Click here to instantly compare plans from the top insurers and avail the best coverage for the best price.