Ex-Showroom Price Vs IDV In Car Insurance
See the difference between ex-showroom price and IDV so you can avoid common confusion while comparing motor insurance quotes in India.
Written by
Financial Calculator Hub Editorial Team
Reviewed by
Financial Calculator Hub Review Team
Ex-showroom price and IDV are related, but they are not the same thing. Many people mix them up when reviewing policy quotes, especially when they are buying or renewing car insurance for the first time.
The car insurance IDV calculator on this site starts from the ex-showroom price and then applies the IDV depreciation rule you requested.
What is ex-showroom price?
Ex-showroom price is the base vehicle price before registration, road tax, insurance, and several other on-road costs are added. It is commonly used as a starting reference when someone talks about the original price of the car.
What is IDV?
IDV is the insured declared value of the car. It is not the same as the amount you paid on-road. Instead, it represents the approximate insured value of the car used in the policy context.
Because cars depreciate, IDV usually falls over time.
Why the two values differ
These two values differ because they answer different questions:
- Ex-showroom price asks: what was the base price of the car at purchase?
- IDV asks: what is the approximate insured value of the car for the policy now?
That is why a renewal quote should not be judged against the full original purchase cost alone.
Example
Suppose the ex-showroom price of a car was Rs 10,00,000. Under this site's rule:
- first-year IDV becomes Rs 9,50,000
- second-year IDV becomes Rs 8,55,000
- third-year IDV becomes Rs 7,69,500
The ex-showroom price stays the same as the original base price reference, but the IDV keeps changing as the car ages.
Why this matters when comparing quotes
If you confuse ex-showroom price with IDV, you may think a quote is wrong when it is really using a depreciated insured value. Understanding the difference helps you read insurer quotes more confidently.
For a deeper explanation of why this matters in quote comparison, read How IDV affects car insurance premium and claims.
Bottom line
Ex-showroom price is the starting point. IDV is the current insured value estimate. If you want to estimate the latter, use the IDV calculator instead of guessing from the purchase price alone.