How can I increase my bike IDV value in insurance? | IAMABIKER
The Insured Declared Value or IDV is the maximum sum insured set by an insurance company to compensate the insured in the event of theft or loss of his two-wheeler. Simply put, IDV is the current market value of an insured’s motorcycle.
Moreover, IDV significantly affects the insurance premium and plays a crucial role when an individual makes a claim. That said, a few insurance companies offer policyholders the option of increasing their IDV when purchasing bike insurance or when renewing the policy.
Usually, the insurance provider establishes the IDV of an online bicycle insurance policy after evaluating the age, condition and depreciation of the vehicle. However, individuals can either accept this rating or increase/decrease the IDV as needed.
However, most insurance companies tend to charge a higher premium for IDV renewal. Specifically, here are the implications of increasing IDV bike insurance:
Increasing the IDV of a motorcycle insurance plan results in increased payouts in the event of theft or loss of the vehicle. This way, individuals can receive a higher amount and compensate for monetary losses without having to burn a hole in their pockets.
Although an increased IDV may provide a higher payout, it also invites a higher premium amount. Indeed, a higher IDV creates substantial risk for the insurer. Thus, to cover a bicycle, you have to pay more premiums.
Additionally, when it comes to increasing the insured declared value, policyholders should remember a few things before buy bike insurance online. They are –
- An increase in IDV is usually an agreement between the insurer and the policyholder. Also, if there are any disputes about this, the full responsibility would lie with the policyholder.
- Individuals can use the IDV calculator for two-wheelers available on various financial platforms. This online tool will help them understand the market value of their bikes and help them make an informed decision.
There are certain scenarios where an increased IDV could come to the rescue. Find them below:
This is one of the most common cases where an increased IDV of a bike insurance could come in handy. In the event of theft, buying a new vehicle out of pocket can be costly. Since a high IDV pays out a higher claim amount, one can purchase a new bike of their choice without worrying financially.
As the term suggests, bicycles that are beyond repair after suffering an unfortunate accident are called total or complete loss. In such a situation, there is no way for the individual to repair the vehicle and bring it back to its former brilliance. Thus, one can make a claim with his insurer and receive a higher IDV to support his finances.
Somewhat similar to total loss, a implicit loss it’s when a bike has suffered enough damage, but it can be restored to its original condition. At the same time, the repair cost can exceed 75% of the bike’s market price. In such a situation, instead of paying the repair costs themselves, individuals can benefit from the higher payment provided to them by the insurance company.
Additionally, people who want comprehensive financial protection for their bikes can consider visiting major online insurance aggregators to purchase a two-wheeler insurance policy. An insurance policy should not be thought of as anything other than a crucial asset similar to all the must-have bike accessories because having a two-wheeler plan not only helps you in tough situations, but it also covers most other expenses. However, it is very important to assess the requirements and the financial situation before buying a bike insurance policy online.