If you own your vehicle, then you know the cost of keeping the car. You auto is what gets you from home to work and other places of interest. The problem comes when the vehicle is in an accident and ends up getting totaled. In order to get the value of the vehicle your insurance company has to figure the IDV so it knows what to pay you.
How Insured Declared Value is Calculated
- Insured Declared Value is figured by subtracting the selling price from depreciation. By doing this the true value of the car or truck is able to be figured.
- The age of the vehicle plays a large part in how much value is lost. For cars less than a year old there is a 15 percent loss of value. For every year past one year the value of the car loses 10 percent. So anything under 5 years there is a 50 percent loss in value
- Any car over five years of age the IDV is agreed on by the insurer and the insured person. The condition of the car is taken into consideration when it comes time to determine the value of the car.
- If your car is ever stolen the IDV is what you will receive when it comes time to payout for the value of the car. If your car is over five years old and you have some accessories put in the car, then you will want to let the insurer know before the value of the car is determined.
If you live in the Ada, Oklahoma area and have any questions about the true value of your car, then give your independent agent a call today. If we are your agent, then we can help take care of your questions about IDV. We want to assist you with your insurance needs.