IDV: the one number that decides your car theft payout
Lowering the insured value to save premium quietly lowers every claim you will ever make on that policy.
Insured Declared Value is the maximum an insurer will pay if your vehicle is stolen or written off. It is also the base on which the own damage premium is calculated, which is why quotes sometimes look cheaper than they should.
How a low IDV hurts
- Total loss: you receive the IDV, not the market value. A gap of a lakh is a real loss, not a paper one.
- Partial loss: some wordings apply under-insurance principles, reducing the settlement proportionately.
- Trade-in: a written-off vehicle settled at a low IDV leaves a shortfall on any outstanding loan.
How it is set
IDV starts from the manufacturer listed selling price less depreciation for age, adjusted for accessories. It is not the price you paid, and it is not the resale price.
Practical advice
- Set IDV close to realistic replacement value, not at the lowest the portal allows
- Declare fitted accessories separately - CNG kits, alloys, infotainment
- On a car under five years old, consider return to invoice cover, which bridges IDV and the invoice price on a total loss
Compare quotations at the same IDV. A lower premium at a lower IDV is not a saving; it is less cover.