Q.Is higher IDV beneficial at the cost of higher premium?

[URL="https://www.zigwheels.com/forum/profile/1651"]Harsh Agarwal[/URL] Me too would require a expert insurance opinion. My Ford Figo 2012 Dec insurance is going to expire in 3 weeks & is fully insured with Zero Dep policy from Bharti Axa. What i have heard is that after the 4th year of policy i won't be able to fetch Zero Dep policy in the 5th year. I have no claim bonus applicable till now & vehicle is second owner. Current IDV stands near to 3.1 lakhs figure.

[QUOTE_NODE]"[B]Originally posted by Harsh Agarwal"[/B] Check what all insurance company provide cashless garage service and make a decision. [/QUOTE_NODE] Yes, I think this is a very important aspect, particularly if you're not servicing with the ASC any more. You need to check with your regular garage and see which companies they have a cashless tie up with and then you should choose from one of those companies your insurance policy. [QUOTE_NODE]"[B]Originally posted by CorsaVeloce"[/B] Harsh Agarwal, I also need some help regardign the insurance of my 2012 Skoda Laura. My insurance expires in two weeks and have been getting calls from the insurance company to renew it - I am the second owner of the car and apparently if I want the same IDV to coutinue, I have been told that the premium will go up by 10% as I will not be eligible for theno claim bonus that the previou sowner had. Is this the procedure that is followed when the ownership is changed? Some light onthisi issue would be really helpful. [/QUOTE_NODE] I think the previous owner can take his No Claim Bonus with him when he sells you the car. When you buy the car, if you have any No Claim Bonus from a previous car that you sold, you can claim that and apply that to the insurance policy of your current car. If I remember correctly, the No Claim Bonus transfer certificate is valid upto 3 years. I think the insurance company is reducing the IDV so as to give you the same premium the previous owner had [B][considering[/B] his No Claim Bonus]. If you want the same IDV, obviously you'll need to pay extra. I'd say go for the higher IDV, either by paying the difference, or by applying any available No Claim Bonus you might have.

[URL="https://www.zigwheels.com/forum/profile/1651"]Harsh Agarwal[/URL], I also need some help regardign the insurance of my 2012 Skoda Laura. My insurance expires in two weeks and have been getting calls from the insurance company to renew it - I am the second owner of the car and apparently if I want the same IDV to coutinue, I have been told that the premium will go up by 10% as I will not be eligible for theno claim bonus that the previou sowner had. Is this the procedure that is followed when the ownership is changed? Some light onthisi issue would be really helpful.

[URL="https://www.zigwheels.com/forum/profile/21"]JijoMalayil[/URL] Hey Jijo, at 10% depreciation per year, Current IDV of your RITZ would be half of the price you would have paid when you bought your car. Somewhere 2 lacs. Service wise ICICI is pretty good but it is also a bit expensive , where as Public insurance company will come cheaper but with some uncertainity of service part. Since your car is old price difference should not be more than 1 - 1.5K. Check what all insurance company provide cashless garage service and make a decision.

[URL="https://www.zigwheels.com/forum/profile/1651"]Harsh Agarwal[/URL] This comes right on time. My Marut Ritz's insurance is about to expire. It's a 2010 model diesel car. What should be the ideal IDV? I have a comprehensive insurance coverage with ICICI Lombard now. Is it better to shift to a nationalised Govt insurance company?

[URL="https://www.zigwheels.com/forum/profile/6480"]Gaganjot_Singh[/URL] Insured Declared Value or IDV is the maximum amount the insurance company would be liable to pay you in case of a total loss of vehicle or upon claim. To simplify it, it is the sum assured fixed by the insurer which would be paid to a customer in case of Total Loss or theft or any claim. It is actually the 'current market value' of the car and is computed as the difference between the selling price of the vehicle and depreciation.So, if you bought a car 2 years ago at a price of 5 lakh, this minus depreciation (generally 10% pa) would be the IDV i.e 4.05 Lakh The depreciation amount keeps increasing as the car gets older. So, if for a 5 months old car the depreciation charged is 5 %, for a 4 year old vehicle it could be as high as 40%. However, in case your vehicle is older than 5 years or is an obsolete model, then the IDV is reached upon by a negotiation between the policyholder and the insurance company. Now, you need to understand that the premium you would pay for the policy is directly proportional to the IDV. More the IDV, more the premium. But, also consider that if you declare lower IDV to save on the premium, you would get less of claim money in case of total loss or vehicle theft. So, it is best to go for right IDV rather than a higher or lower IDV. Only if chances of Car being totally damaged by flood, earthquake or prone to theft, one should go for Higher IDV

[URL="https://www.zigwheels.com/forum/profile/6480"]Gaganjot_Singh[/URL] Its in very rare situations that the higher IDV is beneficial. The IDV comes into picture only during theft and total loss. Also, in some scenarios when the repair costs are coming near the IDV, companies try to declare a total loss and pay you the IDV. This would not make any change to the share you have to pay during normal accident claims. Usually the IDV is calculated according to some charts with the insurer. In some cases the market value of the car would be higher than the IDV. In that scenario, increasing the IDV to market value may help you to get the car's value in case of loss or theft. In most scenarios its not very beneficial.