What is IDV in Car Insurance? IDV is the maximum amount your insurance provider can give you, in case your car is stolen or totally damaged. The Insured Declared Value and your car insurance premium go hand in hand. This means, the higher your IDV is, the higher your car insurance premium – and as your vehicle ages and IDV depreciates, your premium also decreases. Also, when you decide to sell your car, a higher IDV means you’ll get a higher price for it. Price may also be affected by other factors like usage, past car insurance claims experience etc. So, when you’re choosing the right car insurance policy for your car, remember to make note of the IDV being offered, and not just the premium. A company offering a low premium may be tempting, but this could be because the IDV on offer is low. In case of total loss of your car, a higher IDV leads to higher compensations. At the time of resale, your IDV is indicative of the market value for your car. However, if you have maintained your car really well and is shining as good as new, you can always aim at a price more than what your IDV might offer you. At the end of the day, it all boils down to how much love you have showered on your car. Know more about Insured Declared Value in Car Insurance.

What is No Claim Bonus (NCB) in Car Insurance? NCB (No Claim Bonus) definition: NCB is a discount on premium given to the policyholder for having a claim free policy term.

A no claims bonus ranges from a discount of 20-50% and is something you earn at the end of your policy period by maintaining a record of making no car accident claims under your car insurance policy. This means that you can’t get a no claims bonus when you buy your first comprehensive car insurance policy – you can only get it on your policy renewal. Your no claims bonus increases after every claim-free year on your policy renewal. For example, you can earn a 20% NCB after the first year of having no claim under your car insurance policy. This percentage will increase with every claim-free year, reaching 50% after 5 years – and resetting to zero when you make a claim. After reaching 50% in the 5th year, your NCB stops rising and remains the same. This is called the No Claim Bonus Sunset Clause. A No Claim Bonus is meant for the car insurance policyholder regardless of the car. This means, even if you switch your car, your NCB stays with you. If you decide to buy a new car, you will be issued a new car insurance policy, but you can still avail of the NCB you accumulated on the old car or policy. Know more about NCB in Car Insurance.

Zero Depreciation Cover in Car Insurance A Bumper-bumper or Zero dep cover or Parts Depreciation Cover, makes sense for cars less than 5 years old. Like everything in life, there is a decrease in value of certain parts of your car, including the bumper or any other metal or fibre glass parts. So, when a damage happens, the full cost of replacement is not given as depreciation is deducted from the claim money. But this add-on makes sure there is Zero Depreciation and you get the full value of the cost of repair/replacement provided. In short, if your car is partially damaged, you don’t have to bear the amount being calculated for depreciation and your insurer will take care of everything. Know more about: Difference between comprehensive and zero depreciation insurance

Bumper to Bumper Car Insurance

Zero Depreciation Car Insurance