InsuranceFinancial Glossary
IDV (Insured Declared Value)
Definition
The maximum sum insured for a motor insurance policy, representing the current market value of the vehicle. IDV is calculated as the manufacturer's listed selling price minus depreciation based on the vehicle's age. It is the maximum amount the insurer will pay if your vehicle is stolen or totally damaged.
Why It Matters
A lower IDV reduces your motor insurance premium but also reduces your payout in case of total loss or theft. Some insurers set IDV lower than market value to attract customers with cheap premiums. Always verify the IDV matches your vehicle's approximate current resale value.