Can I set my IDV higher than the calculated value?

No. Insurers calculate IDV using your car's listed price and the applicable depreciation slab, and this amount is not open to negotiation upward. You can review the number shown to you and raise questions if it looks incorrect, but it will not exceed what the depreciation scale allows.

Does my car's IDV include fitted accessories?

Fitted accessories are not included by default. The standard IDV calculation is only for your own car based on its price and age listed. If you have accessories like a music system or alloy wheels, these generally have to be declared separately to be covered under your cover.

What does the insurer pay if my car is stolen?

Your insurer pays up to your car's IDV if it is stolen and not recovered. This amount is treated as a total loss settlement, so it reflects your car's depreciated value at the time of the claim rather than what you originally paid for it.

Is IDV the same as my car's current market value?

Not exactly. IDV is calculated using a fixed depreciation scale set by the regulator, while market value can be influenced by demand, location, and condition. The two amounts are often close, but your insurer only uses the IDV calculation when settling a claim.

Does my IDV change automatically at every renewal?

Yes. Your insurer recalculates your IDV at each renewal by applying the next depreciation slab to your car's age. This is why your IDV, and often your premium, gradually decreases as your car gets older, even if you make no changes to your cover.

What counts as a total loss for car insurance purposes?

A car is generally treated as a total loss when it is stolen and not recovered, or when the cost of repairing the damage would come close to or exceed its IDV. At that point, insurers typically settle against the IDV rather than pay for a repair that no longer makes financial sense.

Is the 75% repair-cost threshold for a total loss the same at every insurer?

The exact threshold can vary slightly between insurers, though treating repair costs above roughly 75% of a car's IDV as a total loss is common practice across the market. It is worth checking your specific policy wording rather than assuming an identical cutoff everywhere.

Can I choose a specific IDV before buying my policy?

You can choose within limits. Your insurer shows you the calculated IDV based on your car's listed price and age, and lets you select an amount within a permitted range around that number. An amount far outside the calculated range is generally not allowed.

Does choosing a lower IDV reduce my claim payout?

Yes. Since your IDV is the maximum your insurer uses for a total loss settlement, choosing a lower value directly reduces what you can receive. It can lower your premium as well, so the choice is a balance rather than a simple saving.

Does the compulsory deductible reduce what I receive against my IDV?

Every motor claim carries a compulsory deductible, and your insurer subtracts it before paying out. Even though your IDV sets the maximum for a total loss claim, the amount you actually receive is calculated after this deductible is taken into account.

Does my IDV differ between comprehensive and standalone Own Damage cover?

No, the calculation itself does not change. Your IDV is based on your car's listed price and depreciation slab regardless of whether that Own Damage cover is part of a comprehensive policy or stands alone, since both use the same underlying figure.

What does Kiwi check to confirm your IDV during a claim?

Your Claims Specialist reviews your car's listed price, its age, and the applicable depreciation slab to confirm the IDV shown on your policy. This same amount is then used to work out the settlement if your car is stolen or considered a total loss.

IDV explained: how your car's Insured Declared Value is decided

Written by

Reuben SolomonLead Content Writer

Reviewed by

Rupinderjit SinghHead - Tech Product & Digital Business

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Introduction

Your car's Insured Declared Value (IDV) is the maximum amount your insurer pays if your car is stolen or considered a total loss. This single number connects two things you care about: how much you pay in premium, and how much you receive if you ever need to raise a claim for such a loss.

Keep in mind

IDV applies only to Comprehensive and Own Damage cover, not Third-Party cover
Calculated from your car's listed price using the regulator's fixed depreciation scale
A lower IDV usually means a lower premium and a lower claim payout
Most insurers let you review this amount again at every renewal

Third-Party cover has no IDV at all

IDV only exists where there is your own car to put a value on. A Third-Party-only policy has no Own Damage component, so there is no vehicle value for your insurer to calculate or insure against in the first place, and no IDV figure appears anywhere on that kind of policy.

This becomes relevant the moment you compare a Third-Party quote with a Comprehensive one. The two are not different IDV amounts on the same kind of cover, they are different kinds of cover altogether, one of which simply does not use this figure.

How your car's IDV actually gets calculated

IDV is based on what your car was worth when it was new, adjusted for depreciation as the car gets older.

Here’s how it works:

Start with the car’s original price
The insurer takes the car’s ex-showroom price when it was new.
Apply depreciation
A percentage is deducted based on the car’s age.
The remaining amount is the IDV
This becomes the car’s IDV for that policy year.
Accessories are usually separate
Optional accessories added after purchase may not be included in the IDV.

For example: If your car’s ex-showroom price was ₹8 lakh and it is now one year old, the insurer applies the applicable first-year depreciation rate. The amount left after depreciation becomes your IDV for that year.

If your car is stolen or is damaged beyond repair and the claim qualifies as a total loss, the IDV is generally the maximum amount the insurer will pay, subject to the policy terms.

If you have fitted accessories such as a music system, alloy wheels, or a CNG kit, these usually need to be declared and valued on top of your car's IDV. Left undeclared, they generally will not be covered separately if you ever raise a claim.

Why depreciation lowers your IDV every renewal

The Insurance Regulatory and Development Authority of India (IRDAI) sets a fixed depreciation scale that every insurer follows. Your car's age decides which slab applies, and the percentage rises step by step as the car gets older. A car in its first year sees a smaller deduction than a car several years old.

The scale runs from 5% in the first year up to 50% once a car crosses the higher age bands. This is why an identical car model can have a different IDV depending on how long you have owned it, even if nothing else about the policy changes.

This scale applies uniformly across insurers, so the IDV difference you see when comparing car insurance quotes usually comes from the price and features insurers use as the starting point, not from a different depreciation rate.

Your IDV decides what you can claim

If your car is stolen or damaged beyond repair in an accident, your insurer settles the claim against your IDV rather than the price you originally paid. This is the maximum amount your insurer pays once your car is considered a total loss.

This is why your IDV matters as much as your premium. An amount set too low leaves you with less money towards a replacement car, while an amount that matches your car's real depreciated value gives you a fair and accurate payout when you raise a claim.

Your insurer also applies any compulsory deductible before paying out, so the amount you actually receive can be slightly less than your full IDV. Knowing this in advance helps you understand your final settlement rather than being surprised by it.

Getting your IDV right at every renewal

Most insurers recalculate your IDV automatically at renewal, applying the next depreciation slab to your car's age. You can review this amount when you buy your car insurance policy or renew it, and check that it reflects your car's condition and current listed price.

A higher IDV increases your premium, since your insurer is agreeing to a larger maximum payout. A lower IDV brings the premium down, but it also lowers what you receive if your car is ever considered a total loss. Balancing the two is worth a few minutes at every renewal.

When is a car considered a total loss?

A total loss is when your car is stolen and not recovered, or when it is damaged so badly that repairing it no longer makes financial sense. In many cases, insurers consider a car a total loss when the cost of repairs reaches around 75% of its IDV.

For example, if your car has an IDV of ₹6 lakh and the estimated repair cost is around ₹4.5 lakh or more, the insurer may treat it as a total loss rather than proceeding with the repairs, subject to the policy terms.

Where Kiwi fits if your car is a total loss

If your car is treated as a total loss, knowing how the IDV affects your payout becomes important. With Kiwi, a dedicated Claims Specialist can guide you through this process and explain how the settlement amount is calculated.

Clear explanation
Your Claims Specialist can explain how your car's IDV and depreciation affect the payout.
One point of contact
You have one person to speak to throughout the claim instead of switching between different teams.
Claim updates
You can track the progress of your claim and stay informed about what happens next.

Conclusion

Your IDV is not a figure you set once and forget. It moves every year as your car's depreciation slab changes, and it directly shapes both your premium and what you would receive if your car were ever stolen or considered a total loss. Checking this number carefully at each renewal, rather than accepting whatever is shown by default, keeps your cover matched to your car's real value and makes a real difference if you ever need to raise a claim.

Written by

Reuben Solomon

Lead Content Writer

Reviewed by

Rupinderjit Singh

Head - Tech Product & Digital Business

Frequently asked questions

No. Third-Party cover has no IDV, since it protects against liability towards another person or vehicle rather than your own car. IDV only applies to Comprehensive and Own Damage cover, where your insurer needs an amount to calculate what it pays if your car is stolen or considered a total loss.