How Zero Depreciation Cover Influences Your Car’s IDV
When you buy car insurance, you want it to reflect your car’s true value, not a reduced amount due to the age of the vehicle. That is where zero depreciation car insurance can help you. It ensures you receive the full claim amount for repairs or replacements, without depreciation deductions. But how does this add-on relate to your car’s Insured Declared Value (IDV)? Let us understand how zero-depreciation cover affects the overall value and effectiveness of your car insurance. Understanding IDV in Car Insurance Before understanding how zero depreciation in a car insurance policy impacts your coverage, it is important to know what IDV means. Insured Declared Value (IDV) is the current market value of your car. It is the amount your insurer will pay if your vehicle is stolen or completely damaged beyond repair. IDV is calculated based on your car’s age, model and the depreciation applied to it each year. The older the car, the higher the depreciation and the lower its IDV. Essentiall...