How the Depreciation of Your Car Affects Its Insurance Policy Premium?

For any kind of property, its depreciation is a natural process that leads to the decrease of its value. It is due to normal wear and tear of the asset, and the same rule applies to the car also. Over a period, a car’s value also goes down due to its depreciation. Hence for a car owner, it is necessary to know how the depreciation affects his vehicle and its insurance premium.

It is a fact that the car insurance is offered to save the owner from damage to the car for which he may have to pay a considerable amount. In case of a total loss of the car, one can have the maximum amount availed from the insurer. And this amount is called as the insurance declared value or IDV. The biggest question here is how to fix the IDV. In this regard, one has to take the … Read the rest