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In broad terms, Insured Declared Value of your vehicle is its current price in the market. This is the compensation amounts that you can claim from motor insurance online India in the case of the total loss of the vehicle in question. However, this rate decreases in tandem with the gradual depreciation that occurs over the years and the car moves on the roads. There is fixed depreciation percentage based on the age of your car and this may vary from company to company. Calculation of Insured Declared Value Online motor insurance companies calculate Insured Declared Value of your car by reducing the depreciation value of the vehicle from selling price listed with the manufacturer. Insurance and vehicle registration costs are not considered in this scenario. Depreciation value is a percentage of the manufacturer's selling price that changes almost on a yearly basis and gets mentioned during the renewal of motor insurance, so that no doubt remains when the time for claims occur. Depreciation increases with age It is quite natural that the depreciation value of your car increases with age. Therefore, for a brand new car online motor insurance companies allot the maximum Insured Declared Value possible. This value can vary in the range of 5-50% as the years go by. For example, after six months it is five percent of the selling price and 50% for 4-5 year scenario. In the post five year scenario Insured Declared Value becomes vehicle specific. There is no fixed percentage for ease of calculation. Individual survey from the insurance company determines the claims for the insurance. It is true for obsolete cars, which are no longer available in the current market. Effect of Insured Declared Value values on motor insurance premiums As mentioned before Insured Declared Value determines the total insurance coverage for your vehicle. This is the reason why people hope for the highest possible Insured Declared Value in most cases. However, higher Insured Declared Value also translates into increases rates of premium. Therefore, during the renewal of motor insurance decide whether high premium rates to suit you and then make the final decision regarding Insured Declared Value. Online purchase of motor insurance is flexible since it allows for 10% increase or reduction in depreciation value as needed by the insurance holder. If you have any questions or queries regarding Insured Declared Value it is possible to contact motor insurance online India. They are ever at hand to add to your understanding of the meaning of the term and its procedure. Additionally this gives you a clear idea regarding the worth of our vehicle in the current market scenario. Insurance companies decide the amounts for particular motor insurance through the calculation of Insured Declared Value. This is a standard procedure when you go for motor insurance plans. ______________________________________________________________________________________________________ It is very essential to have a car insurance policy. Author Pranav Sharma is an experienced insurance professional and widely read expert on general insurance based in Mumbai. Pranav helps readers opt for best car insurance policy in India.
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