Purchasing bike insurance in India can be overwhelming with so many plans and rates available. When buying or renewing a bike insurance policy, the Insured Declared Value (IDV) becomes a significant factor affecting both your premium and claim amount. Nonetheless, you can better balance cost and coverage by being aware of IDV, and an IDV calculator can be a useful tool in such cases.
So, how does this calculator help you choose the best bike insurance policy? Well, this article will discuss what IDV is and demonstrate how to use an IDV calculator efficiently. So, keep reading!
The maximum amount your bike insurer will pay if your vehicle is stolen or irreparably damaged is the Insured Declared Value (IDV). It shows your two-wheeler's current market value after depreciation based on age. IDV heavily influences both the premium you pay for your bike insurance policy and the potential amount of your claim. Therefore, choosing the right IDV ensures you are neither underinsured nor overpaying for insurance in the event of a significant loss or accident.
After depreciation is considered, the current market value of your bike is used to determine the insured declared value or IDV. The formula generally used is:
Without accessories: IDV = Ex-showroom price – depreciation
With accessories: IDV = (Ex-showroom price – depreciation) + (Cost of accessories – depreciation on accessories)
According to the IRDAI's guidelines, the depreciation percentage rises as the bike ages. For example, a bike that is less than six months old might depreciate at a rate of 5%. whereas a bike that is three to four years old might depreciate at a rate of up to 40%.
You can quickly find out your bike's Insured Declared Value (IDV) using an online tool known as the IDV calculator. The tool uses sophisticated algorithms to determine your car's current market value, considering variables like make, model, registration year, location, and depreciation.
The calculator helps you understand how much bike insurance coverage you will receive and how much premium you will pay. Hence, it guarantees that you select the best car or bike insurance plan for your two-wheeler and streamlines the decision-making process.
You can find the best bike insurance policy for your car quickly and easily with the help of an IDV calculator. Here is a step-by-step guide to using it.
Step 1: Navigate to the IDV Calculator Page
To use the IDV calculator tool, scroll to the IDV calculator section, whether using the website or a mobile app.
Step 2: Type the Vehicle's Registration Number
Enter the registration number for your vehicle in the appropriate field, then click "Check Now" to continue.
Step 3: Enter Vehicle Information
Next, enter your vehicle's key details, such as the year of registration, fuel type, make and model, and variant. This calculator uses these inputs to determine the accurate market value.
Step 4: Include Contact and Policy Details
Enter your mobile number, policy expiration date, and any other required information. This step guarantees a customised and accurate insurance quote.
Step 5: Compare IDV and Plans
You will receive a list of potential auto insurance plans customised for your car after you enter all the information. To assist you in comparing and selecting the plan that provides the best balance between coverage and premium, the IDV value will be shown at the top of the results.
Selecting the appropriate IDV is essential for striking a balance between cost and coverage. The following advice will help you choose the ideal IDV for your bike:
1. Consider the Bike’s Age
Select an IDV based on your bike's current market value. While a higher IDV results in higher premiums, a lower IDV indicates fewer claims.
2. Examine Your Bike’s Value
To determine the actual value of your bike, consider its mileage, condition, and modifications.
3. Investigate and Compare
Examine the policies of several insurers, contrasting IDV and premiums to determine which one best suits your needs.
4. Assure Proper Coverage
Fair compensation for theft or damage is ensured by adequate IDV.
5. Strive for Cost-Effectiveness
Steer clear of overspending or incurring costs as a result of inadequate insurance.
6. Safe Financial Protection
Ensure sufficient money for any necessary replacements or repairs.
Getting the best bike insurance policy in India requires selecting the appropriate IDV. You can ensure that you pay a reasonable premium and obtain sufficient coverage by using an IDV calculator to determine the current value of your bike. Also, you can make an informed choice by carefully weighing the age and condition of your two-wheeler and contrasting different insurance plans. Hence, you can rest easy knowing that you are protected financially from damage or theft without going over your budget.
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