Why the insured declared value matters at claim time.
What IDV is
The maximum payout in total loss or theft; it is the vehicle’s market value after depreciation.
How depreciation works
For vehicles up to five years the standard schedule applies; older vehicles are valued by agreement.
Higher vs lower IDV
A higher IDV raises the premium but protects you better; a lower IDV reduces the payout.
Check at renewal
Compare the IDV against current second-hand values.
Key takeaway. Pick a realistic IDV; do not slash it just to save a little premium.
General information only; not personal advice. Rules and limits change, so verify current details. Last updated October 2026.