While calculating the IDV, some of the factors taken into account are as followings: Age of two-wheeler vehicle Registration date City of registration Fuel type Model and type of vehicle Insurance policy term The main focus is on the term or age of the vehicle since that’s how even the depreciation factor can come into account. It is always advised to get an IDV that’s closest to the market value, but it also depends on your insurance company. The company may offer to even reduce the IDV by some percentage which would mean a lower premium rate.