What is Return to Invoice in Car Insurance?

Return to Invoice (RTI) is an add-on cover in car insurance that ensures you get the full value of your car’s invoice price in case of total loss or theft. Typically, when you file a claim for your car’s theft or total damage, the insurance company compensates you based on the car’s Insured Declared Value (IDV), which is its current market value after accounting for depreciation. This often results in a significant gap between the payout and the actual cost of purchasing a new car.

With the RTI cover, however, this gap is eliminated. Instead of the depreciated value, you receive the full amount mentioned in your car’s original invoice, including registration fees, road tax, and other charges.

Benefits of RTI in Car Insurance

1. Full Compensation: Covers the total cost of your car as per its purchase invoice, not its depreciated value.
2. Peace of Mind: Reduces financial burden in case of theft or total loss.
3. Additional Costs Covered: Includes one-time charges like road tax and registration fees.

When Can You Use RTI?

• If your car is stolen and cannot be recovered.
• If your car suffers total damage due to accidents, floods, or other calamities, making it irreparable.

Who Should Opt for RTI?

• New car owners: Especially for vehicles under 3 years old, as depreciation significantly affects value.
• Those living in areas prone to theft or natural disasters.

Important Points to Remember

• RTI is typically available only for cars that are up to 3 years old.
• The cover might increase your premium, but the financial security it provides is worth the cost.
• It must be purchased as an add-on with a comprehensive car insurance policy.

Conclusion

The Return to Invoice cover is an excellent add-on for those who want to avoid financial losses due to the gap between the car’s invoice price and its current market value. It provides complete protection and ensures you can replace your vehicle without incurring a major financial burden.

FAQ’s