One common misconception about insurance is that it is difficult to understand. This view is most likely influenced by the use of insurance jargon like Insured Declared Value (IDV). It is difficult to understand the meaning of such phrases simply by reading them, so an explanation is necessary. Continue reading to learn more about the Insured Declared Value Calculator in bike insurance, so you can make an informed decision when purchasing 2 wheeler insurance.
What is IDV in Bike Insurance?
IDV, or Insured Declared Value, is the primary determinant of how much money you may claim for repairs to a damaged car. It is essentially the maximum sum insured established by the insurer in the event of a theft or loss due to an accident. To put it another way, IDV is the current market value of your vehicle. This is the amount you will be reimbursed by your insurance if your bike is stolen or destroyed in an accident.
How is a Bike Insurance Premium Influenced by IDV?
The following are important factors that influence the IDV value of a bike:
- The make and model of your two-wheeler are factors considered when calculating the IDV. As a result, the greater the insured declared value, the more expensive your bike will be.
- The Bike’s Age: Age is another important factor in determining the IDV in bike insurance, the older your vehicle, the lower the IDV.
- The fuel type of the two-wheeler also influences the bike’s insurance IDV, which is determined by whether the bike operates on gasoline or diesel.
- The IDV in bike insurance is also affected by the state or city in which your two-wheeler is registered. The value of automobiles registered in major areas may differ from those registered in rural India.
The Significance of IDV in Two Wheeler Insurance
A solid IDV is critical if you do not want to face a huge loss in the event of an accident. If the applicant agrees, insurers will normally aim to give an IDV that is 5% to 10% less than the current market value. This would significantly reduce the policy’s premium payment.
As a result, the IDV is one of the most essential factors in determining your two-wheeler insurance rate. When comparing bike insurance quotes from several insurers, maintain your IDV consistently because this will help you get the best coverage for your two-wheeler. To ensure that you obtain the exact IDV amount, go to your insurance provider’s website and use their IDV calculator to determine the IDV of your two-wheeler.
Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise towards informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less travelled territories.