Premium starts
at ₹2094*
8000+ Cashless
Network Garagesˇ
Overnight Car
Repair Services¯
4.4
Customer Ratings
Insured Declared Value (IDV) in Car Insurance
Importance of IDV
Two main reasons define the importance of IDV for car insurance. Our expert team at HDFC ERGO helps you understand these benefits before helping you calculate a premium on their cars.
IDV signifies the Maximum
IDV is the highest compensatory amount you are eligible for, in case of a claim.
IDV and the Premium Value
IDV also is a direct factor affecting the overall car premium. Hence, while determining the overall car premium IDV is very important.
Never go too Low
HDFC ERGO believes that no matter what conjectures you hear, lowering IDV is never the right step to take.
The Low Down
Doing so, leads to a lesser sum assured and you end up with far lesser coverage in case you file a claim.
How is the IDV Calculated?
The Motor Tariff Act has framed a depreciation chart to help calculate car IDV. A Depreciation Chart shows how the rate increases. However, before that, you need to understand that the IDV is always calculated on the price of a car from the manufacturer's end. Insurance expenses, as well as costs of registration, are not taken into IDV calculation.
Never go Overboard - Never ever hike up the IDV either.
Pay Premium based on IDV - We calculate the insured declared value of a new car according to manufacturer pricing minus the depreciation cost of the car.
Increased vs Decreased IDV
IDV is proportional directly to the car premium you pay. In case the IDV is decreased, you pay HDFC ERGO a lower value for premium. With an increased IDV value though, the premium is high but our policy offers you mental peace against the possibility of high costs during claim. There always is a chance that you might never need a claim—but then insurance operates on a ‘better safe, than sorry” principle!
Depreciation Schedule to Fix IDV of Car
The rates of depreciation Motor Tariff Act has laid down are as follows-
| Car Age in Years | IDV Depreciation Rate in % |
| Upto ½ | 5 percent |
| Upto 1 | 15 percent |
| 1-2 | 20 percent |
| 2-3 | 30 percent |
| 3-4 | 40 percent |
| 4-5 | 50 percent |
| 5 + | Negotiable |
Never go Overboard - Never ever hike up the IDV either.
Pay Premium based on IDV - We calculate the insured declared value of a new car according to manufacturer pricing minus the depreciation cost of the car.
Increased vs Decreased IDV
IDV is proportional directly to the car premium you pay. In case the IDV is decreased, you pay HDFC ERGO a lower value for premium. With an increased IDV value though, the premium is high but our policy offers you mental peace against the possibility of high costs during claim. There always is a chance that you might never need a claim—but then insurance operates on a ‘better safe, than sorry” principle!
Depreciation Schedule to Fix IDV of Car
The rates of depreciation Motor Tariff Act has laid down are as follows-
| Car Age in Years | IDV Depreciation Rate in % |
| Upto ½ | 5 percent |
| Upto 1 | 15 percent |
| 1-2 | 20 percent |
| 2-3 | 30 percent |
| 3-4 | 40 percent |
| 4-5 | 50 percent |
| 5 + | Negotiable |
Factors Affecting the IDV of your Car
The insurance declared value of your car is decided as per a few factors. Take a look-
Car model or type
This is a major factor for helping to calculate IDV for your car. Depending on the size and make of the car, the IDVs tend to vary greatly. Even for cars of similar build, you have an IDV that alters with specific models under the same brand.
Age of car and depreciation
A car loses value as soon as you drive out of the showroom with it. In fact, cars are one of the few popular buys among consumers that see rapid depreciation, year-on-year! This has a huge impact on IDV and the rates are specified above as well.
Registration location
This also has a major role to play when it comes to declaring or setting up an IDV. City wise, the pricing of cars tends to vary greatly.
Accessory in the car
Depending on additional accessories in a car, IDV sees alteration to a limit. No two same model cars will have the premiums as accessories might be different.
HDFC ERGO calculators mentioned above aids you in taking all of these figures and factors into account. We share an estimated premium only after careful consideration of all these variations.
How Does the IDV Affect the Insurance Premium?
Car insurance premium payable is directly proportional to the IDV of a car. The higher it goes, the higher the premium value. The lower the IDV stays, the premium is equally low.
As mentioned, the increase or decrease limit on the IDV of a car sees effect on the final premium. The depreciation rates are applicable though! These are the rates shared in the schedule in a previous section.
IDV needs to be quoted correctly for HDFC ERGO to arrive at the right quote for your comprehensive car insurance policy.
How to declare the correct IDV?
Research on Car IDV and makert value Understand how IDV works and be clear determine IDV based on the current market value
Compare Car IDVs
Check prices of older cars.
Apply Depreciation Rates
Check on how much depreciation rate applies.
Request a Quote
Once you get an idea, contact HDFC ERGO for a quote.
Why Setting Up the Right IDV is Vital?
Since IDV signifies the highest amount you receive in case of “total loss” of a car, it is essential to set the right figure.
The estimated IDV must be rational and you must be on the same page as the insurer.
At HDFC ERGO,
such conversations are easy and the resulting relationship is transparent. We value our customers over being just a customer!
Impact of IDV on the Car Insurance Plan
Insured Declared Value plays a vital role in calculating the damage components of the car insurance premium. People who opt for own damage cover will get compensation in case of damage or theft of the insured vehicle. The premium for own damage cover will be 2% to 3% of the IDV of the insured vehicle. However, it may vary based on certain factors, such as the age and cubic capacity of the vehicle. Hence, higher the IDV, higher your car insurance premium will be.
If you are yet to declare the IDV, you should immediately contact the insurer and give the necessary details. It is important to note that the premium of a comprehensive car insurance policy highly depends on the IDV. However, revealing the correct IDV can help in the long run during claim settlement.
Therefore, the insurer must not give a thought to lowering their IDV. Initially, you might save some money on the premium by lowering IDV, but in the end, you might lose a big chunk of compensation borne by the insurer at the time of claim settlement. Therefore, it is advisable to get your insurance at the total amount of IDV. It will help you get a proper claim during damage or loss due to any insurable peril.
IDV Calculator - Get Car Insurance with High IDV
To determine what the IDV value in car insurance is, a number of factors go in, such as your car’s age, model, engine capacity, brand, vehicle type, etc., your insurance provider determines the current value of your car. Accordingly, the IDV of your car is calculated as per the manufacturer’s sales price after subtracting the rate of depreciation. The formula is: IDV = Registered price of the car by the manufacturer – Depreciation
Points to Keep in Mind While Calculating the IDV of a Car
1. IDV concept: First things first, you need to understand what is IDV in insurance. IDV is the present worth of the car in the market. It is the highest amount that may be received from your insurer in the event of total loss or theft of your car.
2. Don’t understate the IDV : People often decrease the IDV to lower their car insurance premium. However, this can affect your coverage negatively in case of loss or theft, as the coverage will also be less. .
3. Don’t overstate the IDV: Overstating the insured declared value of the car, is also not recommended as the coverage being opted for should match the car’s condition. A high IDV will also increase your premium.
4. Mention accurate IDV: Never mention an incorrect IDV while filing a claim, as it can lead to the rejection of your claim. Use the IDV calculator to get a fair estimate of your car’s value
5. Negotiate : If you think the IDV offered by your insurance provider is not favourable, you can always negotiate to get an IDV as per your wish to get the ideal cover for your car. ?
Advantages of decreasing/increasing IDV:
Higher IDV
Higher IDV will increase the premium; however, the insured person will be liable to receive maximum compensation if the vehicle undergoes irreparable damage or theft.
E.g. If your car suffers massive damage in an accident, it will lead to huge financial expenses. Having a higher IDV will help you get substantial compensation from your insurer for such losses. With this, you can even plan to purchase a new vehicle.
Lower IDV
You might save on the premium by lowering IDV; however, you will get less coverage in case of loss or theft of a car. Therefore, keeping a high IDV for the maximum financial security of your vehicle is advisable. But, if your vehicle is old and you do not take out much frequently, consider lowering IDV.
E.g. Mr X does not drive his old car regularly, and it is safely parked most of the time in his garage. So he can consider keeping a lower IDV and thereby pay less premium.
Insured Declared Value (IDV) and Car Insurance Claim
Generally, the IDV is not needed during claim amount calculation. This figure comes to play when buying a comprehensive car insurance plan from HDFC ERGO.
IDV and Car Insurance Renewal
Car Insurance for Popular Brands
Car Insurance for Popular Indian Models
Read the Latest IDV Car Insurance Blogs
Importance of Choosing Correct IDV When Buying Car Insurance
See full article
What is IDV in Motor Insurance and How does it Work?
See full article
Car Insurance Claims & IDV - Everything You Need to Know!
See full article
FAQs about IDV
Awards & Recognition
ICAI Awards 2015-16
SKOCH Order-of-Merit
Best Customer Experience Award of the Year
ICAI Awards 2014-15
ICAI Awards 2015-16
SKOCH Order-of-Merit
Best Customer Experience Award of the Year
ICAI Awards 2014-15
Last updated: 2023-02-20
View all awardsYour Car Insurance is just a few steps away!
Premium starts
at ₹20728000+ Cashless
Network GaragesOvernight Car
Repair Services
Car Insurance 
Bike/Two Wheeler Insurance 
Health Insurance 
Pet Insurance
Travel Insurance 
Home Insurance 
Cyber Insurance 
Third Party Vehicle Ins. 
Tractor Insurance 
Goods Carrying Vehicle Ins. 
Passenger Carrying Vehicle Ins. 
Compulsory Personal Accident Insurance - For Individual
- For Family
- For Parents
- For Senior Citizen
- Global Health Insurance
- Optima Secure
- Optima Secure Individual
- Optima Secure Global Individual
- Optima Secure Global Family
- Optima Super Secure plan
- Optima Super Secure plan Individual
- Optima Restore Family Floater
- Optima Restore Individual
- Critical illness Insurance
- Super Top up Insurance
- Arogya Sanjeevani Policy, HDFC ERGO
- Koti Suraksha
Travel Insurance 
Rural 
Critical illness Insurance 
