When buying or renewing a policy, many vehicle owners do not pay enough attention to IDV in car insurance, only to realise later that the chosen value was too low. This becomes a concern, especially when you have installed new accessories after purchase.
Many car owners often wonder, “Can the IDV be increased after the policy is already active?” While the answer depends on the situation, here is a breakdown of all the possible scenarios.
Can IDV be Increased After Policy Purchase?
When you purchase a car insurance policy, the insurer evaluates your vehicle’s condition, depreciation, model and manufacturing year. Based on these details, they determine the IDV for that policy term. Once this value is finalised and the policy begins, insurers typically do not change the IDV mid-term.
This is because IDV directly impacts your premium and the insurer’s risk exposure. Altering it midway disrupts the original underwriting assessment. So in most cases, the IDV remains locked until your next renewal window.
However, this does not mean revision is entirely impossible.
Situations Where IDV May be Revised
Valuation Errors
Suppose the insurer or agent entered incorrect values by mistake, such as the wrong ex-showroom price or an incorrect manufacturing year. This can sometimes be corrected through an endorsement.
Addition of High-Value Accessories
If you install expensive aftermarket accessories after the policy begins, some insurers may review them, usually after inspection and adjust the IDV accordingly. This is less frequent but possible depending on the insurer’s underwriting guidelines.
Fresh Inspection Requests
In rare cases, insurers may agree to re-evaluate the IDV if you request a reinspection for legitimate reasons. This depends entirely on the insurer’s discretion.
Renewals and Policy Upgrades
Even if mid-term revision is denied, renewal provides a full opportunity to choose a more accurate IDV. This is where most policyholders successfully update the valuation.
What You Can Do If Mid-Term Revisions are Not Allowed?
If the IDV assigned is significantly lower than expected, here are your practical options:
Request a Re-evaluation
Reach out to your insurer, explain your concern and ask whether a mid-term endorsement is possible. Approval varies case by case.
Opt for the Correct IDV at Renewal
This is the most reliable path. You can freely adjust your IDV within the permissible depreciation-led range.
Switch Insurer for Better Flexibility
Not all insurers follow the same valuation band. Switching providers at renewal may help you secure a more suitable IDV.
Use an IDV Calculator Before Renewing
Online tools let you estimate your car’s fair market value before renewal.
How a Revised IDV Affects Premium and Claims?
A revised IDV, whether mid-term or at renewal, affects both your premium amount and the compensation you receive in total loss or theft scenarios.
A higher IDV ensures better financial coverage, while a lower one keeps premiums minimal but reduces claim value. This is why selecting the right IDV is essential for long-term protection.
Conclusion
While increasing IDV in car insurance after buying a policy is not always possible, you can still correct errors or re-evaluate the valuation during renewal. Being proactive ensures your car is neither undervalued nor overvalued.
Opting for an insurer known for transparent IDV practices, like TATA AIG, can make the entire process far smoother during car insurance policy renewals and upgrades.
