Return To Invoice
Return to invoice or RTI cover provides coverage to the policyholder in case the car is stolen or gets damaged and declared a total loss. Under this cover, the insured is eligible to get the full compensation from the insurer that is the last invoice amount of the car under the above-mentioned conditions.
What Is Return To Invoice?
Return to invoice cover is an add-on provided by the insurance company. You have to an extra amount in your car insurance premium to get covered under this add-on. You can purchase this add-on only if he/she is covered under a comprehensive car insurance policy.
How Does the Cover Works for You?
A basic car insurance policy would not fetch you the actual value of your car or the money you’ve invested at the time of purchasing the car. If we consider the rate of depreciation, 5% depreciation is applied on the car which is 6 months old from the day of purchase, 10% for one year.
In such a case, you tend to lose quite a huge amount. But with an invoice return cover, you need not have bear the differences, as the insurer pays the full value of your car until it reaches the age of 3 years.
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When Return to Invoice Cover Comes into the Picture!
This cover comes to your rescue to cover the gap between the IDV and the invoice value of your car. It is an optional cover to fetch you the complete amount of loss when you claim the insurance in case of an accident or total loss.
However, you can avail of this cover at an additional cost. Usually, RTI costs 10% more than your comprehensive car insurance. Moreover, you can avail of this cover until your car reaches a specific age.
How Much Reimbursement can be Availed
At the time of buying car insurance, the insurance provider decides the IDV of your vehicle by applying the depreciation from the invoice value. It is the current market price of your car or the maximum amount up to which you can claim your insurance policy in case of a total loss.
When is the Cover Applicable?
We don't recommend you to buy return to return to invoice car insurance to cover small dents and repair expenses or a crack of the windshield. This cover comes in handy in covering the full value of the vehicle in case of complete damage or loss. It is helpful if your car is stolen or sustains damages beyond repair.
Moreover, if you stay in a theft-prone area or you don’t have a secured parking area, you must consider this cover.
However, you can’t carry the cover always. After a few policy renewals, you’ll have to withdraw this cover. Usually, it is a loss for the insurance provider to pay you a value that is more than the current market value of your vehicle, especially those cars whose wear and tear would have increased over the period.
How Return To Invoice Is Calculated?
While purchasing the car, you pay the on-road price. On-road price includes the ex-showroom price, road tax and registration charges that depend on the make & model of the car. However, if your car is declared a total loss, then if you do not have an RTI add-on cover, the insurer will provide you coverage as per your insured declared value.
So, when you make a claim under the total loss scenario the insurance company compensates for the below-mentioned values:
- Exshowroom price + Registration Charges + Road tax, when you purchased the brand new car.
- Current replacement charges that include Ex-showroom price + Road tax + Registation charges.
Add-ons for your car insurance
Return To Invoice: FAQs
Ans: No car insurance providing company offers return to invoice add-on to the car that is older than 5 years.
Ans: The new car owners are recommended to purchase the return to invoice add-on cover.
Ans: Yes, RTI cover is provided either your car has been stolen or got damaged beyond repair.
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Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.
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