An IDV calculator is an online tool that helps you calculate your car/bike market value or the IDV in a few seconds. The IDV calculator uses multiple variables like the vehicle's price, the year it was purchased, and the model/brand of the automobile. In short, IDV is the amount that the vehicle owner can claim for reimbursement against the damage caused to the insured vehicle.
The IDV calculator helps in reducing your burden when calculating the IDV. Calculating IDV may be a tedious job and require time and effort. Without the IDV calculator, you may have to use the given formula to calculate IDV.
IDV = Manufacturer’s registered price - Depreciation
In case there were accessories that were not added by the manufacturer when the car was delivered, they will be considered as an additional expense. The formula will then include accessory components.
Insured Declared Value = (Manufacturer’s listed price – Depreciation value) + (Cost of the vehicle accessories – Depreciation value of accessories)
When using the IDV value calculator, you can use the below-given table for reference to calculate the depreciation on your car depending on how old it is.
Age of Car |
Rate of Depreciation |
0-6 months |
5% |
6 months - 1 year |
15% |
1-2 years |
20% |
2-3 years |
30% |
3-4 years |
40% |
4-5 years |
50% |
The IDV calculator will help you understand that the IDV of your car directly impacts the insurance premiums for your car insurance as the IDV determines the insurance claim payout.
If your vehicle has a high IDV, you will also have to pay a higher premium.
On the other hand, if you want to shell out a smaller amount for the insurance of your vehicle, the IDV will be lower.
If you voluntarily choose to go for a lower IDV than the actual value of your car, then you may end up with a loss when you need to claim insurance for damage or theft.
Here are the benefits and downfalls of a high and low IDV in car insurance.
Type of IDV |
Benefits |
Disadvantages |
High IDV |
Higher compensation during total loss and theft claims |
Higher premium amount |
Low IDV |
Lower premium amount |
Lower compensation for theft or total loss |
In case you are looking to buy a car insurance policy, you must make use of an IDV calculator. You can check out the car insurance plans at Bajaj Markets in the table below, along with their important features:
|
Bajaj Allianz Car Insurance |
Acko Car Insurance |
HDFC Ergo Car Insurance |
Third-party cover |
✔ |
✔ |
✔ |
Comprehensive Car Insurance |
✔ |
✔ |
✔ |
Third-party Premium (Effective 1st June 2022) |
Starting from ₹2,094 |
Starting from ₹2,094 |
Starting from ₹2,094 |
Network Garages |
6,500+ |
3,500+ |
6,700+ |
Claim Settlement Ratio |
98.54% |
95.50% |
99.00% |
Additional Covers |
✔ |
✔ |
✔ |
The IDV is the manufacturer’s price minus the depreciation. Ideally, there should be no depreciation in the value of a new car, but once the car is sold, an amount is deducted as depreciation. If the car is less than 6 months old, 5% is deducted as depreciation.
As the market value reduces every year due to the depreciation in the value with the car’s age and usage, the IDV of the car reduces each year. When using the IDV calculator you may see your IDV declines over the years.
When using the IDV calculator of different insurers you may see differences in the IDV. This happens because insurers usually reduce the IDV to attract customers by offering lower premiums. Lower IDV means lower liability and lower claim settlement amount.
When you select a lower IDV on the IDV calculator, you would be able to get a lower car insurance premium. While this may sound tempting, keep in mind that a lower IDV means lower compensation in case your car is lost or damaged beyond repair.
While a higher IDV on the IDV calculator means higher coverage in case your car is stolen or is in a total loss, keep in mind that you would have to pay a slightly higher premium. Therefore, weigh the pros and come and decide accordingly.
For a car that is 5 years or older, the IDV depends on a few other factors such as the overall condition of the car, the make, model and variant etc.
As the ex-showroom price of the car is different for different locations, hence the IDV value will also change accordingly. This means, your car's IDV value does get affected by the purchase location.
An IDV closest to the current market value of your car could be best for you.
The longer your car has spent outside the showroom, the higher its depreciation rate will be. The moment your car leaves the showroom, the depreciation of its components begins. For example, once your car has spent 6 months outside the showroom, it experiences a 5% depreciation. You can find an IDV depreciation chart to understand this concept in detail.
If you increase the IDV of your car, you must keep in mind the fact that your premium amount will increase with it. While a higher IDV invites a higher compensation for total loss or theft, you will also find that the premium price of your policy will increase substantially.
For this purpose, using an IDV calculator for car insurance would be apt. However, in order to manually calculate the IDV in insurance, you may use the following formula to compute the value.
Insured Declared Value = (Manufacturer’s listed price – Depreciation value) + (Cost of the vehicle accessories – Depreciation value of accessories)
The aforementioned formula can be used to calculate the IDV of a car that is equipped with various accessories. In other cases, the following formula can also be used.
IDV = Manufacturer’s registered price - Depreciation