IDV Explained: How It Impacts Your Motor Insurance Premium & Claim

Insured Declared Value, or IDV, is one of the most important terms in motor insurance. Deepak Yohannan, Insurance Expert, explains that IDV represents the maximum insured value of your vehicle and is used mainly in cases such as theft or total loss. It is generally based on the vehicle’s value after applying depreciation, so the IDV reduces as the vehicle gets older. Choosing a very low IDV may reduce your premium but can also lower the maximum payout. On the other hand, a higher IDV can increase the premium. Experts suggest choosing a balanced IDV based on your needs.