Return To Invoice Cover (RTI) In Car Insurance
Updated On Oct 16, 2023
Have you recently purchased a new vehicle? The Return to Invoice Cover might be a wise investment for you. Find out why by reading this article.
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Car insurance add-ons are optional coverage that provides additional financial protection for your vehicle in the event of an accident, theft, or other calamities. You may purchase various add-ons by paying an additional fee. Only solo and comprehensive automobile insurance plans are eligible for the add-ons. Different add-ons provide different forms of protection, such as Return To Invoice or Invoice Protection Cover, which provides invoice protection.
Understanding Return To Invoice In Car Insurance
Return to Invoice (RTI), also known as Invoice Protection Insurance, is an add-on cover. It fills in the difference between the car's insured declared value (IDV) and its invoice value. In the event of a constructive complete loss, you can get a sum equal to the on-road price that you eventually paid to purchase the automobile with this coverage. This Return To Invoice add-on is only valid if your automobile has been severely damaged and is no longer operable. In the case of minor damages, the Return To Invoice add-on is not applicable -
How Does Car Insurance's Return To Invoice Add-On Coverage Work?
You may file a claim against your automobile insurance in a variety of situations, ranging from a broken headlight to car theft. However, if your automobile is irreversibly damaged due to theft, fire, or any other unforeseen catastrophe. In such circumstances, insurance companies pay a sum equal to or up to the car's insured declared value (IDV), which is less than the invoice value, or what you paid for it when you bought it.
Here comes the return to invoice add-on insurance, which enables you to collect the invoice value of your automobile instead of the IDV as compensation in the event of a total loss.
Return To Invoice Add-On Cover Features
The following are some important details concerning the Return To Invoice add-on cover:
1. This add-on is often available for automobiles that are less than three years old.
2. You may acquire it by paying about 10% extra than your standard comprehensive/standalone own-damage auto insurance policy.
What are the Advantages of Return to Invoice Coverage?
The advantages of acquiring a return to invoice cover are as follows:
1. It's ideal for new automobiles, and it may assist cover the cost of a stolen vehicle or one that's been severely damaged.
2. If you reside in an area where automobile and two-wheeler theft is a typical occurrence, it is a smart idea to get this insurance since it will protect you from these situations.
3. Standard automobile insurance usually provides less reimbursement than the amount you purchased for the vehicle. As a result, if your automobile is stolen or completely wrecked, no insurance will fully compensate you. This is no longer an issue thanks to the RTI cover.
Is the Return To Invoice Cover Valid in Which Cases?
A return to invoice cover is not applicable in the following circumstances:
1. For new autos, the return to invoice cover is designed. As a result, if your automobile is more than 5 years old, you will not be able to purchase this add-on cover.
2. The return to invoice add-on protection cannot be used if the damage to your automobile can be rectified. It is only accessible to persons whose automobile has been stolen or has been damaged beyond repair.
3. The RTI insurance would not be available if you fail to register an FIR after your car is stolen or completely damaged in an accident. This is because the FIR is critical as proof in support of your claim.
The Return To Invoice add-on policy is essential if you want to be reimbursed for the total loss of your automobile without losing the registration and tax money you paid. You may acquire coverage up to the on-road price of your automobile with this policy. If your automobile is new or pricey, having this accessory is a must. Purchase it now to avoid the cost of a total loss of your vehicle in the future.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.