• City & RTO
  • Car Brand
  • Car Model
  • Car Fuel Type
  • Car Variant
  • Registration Year
Get Car Insurance starting at only ₹2,094/year #
Compare & Save upto 91%+ on Car Insurance
  • Renew policy in 2 minutes*

  • 21+ Insurers to choose

  • 1.2Cr+ Vehicles Insured

Processing
    Other models
    Other variants
    Select your variant
    View all variants
      Secure
      We don’t spam
      View Prices
      Please wait..
      By clicking on “View Prices”, you agree to our Privacy Policy & Terms of Use
      Get Updates on WhatsApp
      Select Make
      Select Model
      Fuel Type
      Select variant
      Registration year
      Registration month
      Save & update
      Please wait..
      Search with another car number?

      We have found best plans for you!! Our advisor will get in touch with you soon.

      Zero Depreciation Vs. Return to Invoice Add-on Covers: Key Differences

      Car insurance is essential for vehicle owners, offering protection against financial losses from events like accidents, theft, and fire. There are two types of car insurance policies- comprehensive and third-party liability. However, neither type covers the invoice amount or the depreciation cost. This is where car insurance add-ons come into the picture, providing more extensive protection. This article is about two significant add-ons in car insurance: Return to Invoice (RTI) and Zero Depreciation, emphasising their key differences.

      Read more

      What is Zero Depreciation Add-on Cover?

      Everything depreciates with time, and so does your car. But did you know that depreciation affects your car claim pay-out as well? If your car encounters damage in an unfortunate accident, such as a collision, your insurance provider will pay for the damage repairs after deducting the amount of depreciation on the car and its parts.

      However, if you have zero depreciation add-on cover in your car insurance policy, you can easily claim the deducted value of depreciation. This can also save your out-of-pocket expenses.

      But before buying zero depreciation car insurance add-on cover, here are a few points that you must know:

      • Zero depreciation cover is available for the car that is up to five years old. After five years, your car is not eligible for this cover. However, some insurers sell this cover for 7-year-old cars as well.
      • This cover can limit the number of claims that you can file in one policy year. However, this factor varies with the insurer.
      • The premium of a car insurance policy with a zero depreciation cover is comparatively higher than a standard car insurance policy.
      • The coverage of an insurance policy with zero depreciation cover is also not 100%. One needs to pay the compulsory excess amount levied by the insurer.

      What is Return to Invoice in Car Insurance?

      The insurance price of a vehicle is largely dependent on the Insured Declared Value (IDV) of the vehicle. In case of an accident, if you have a comprehensive vehicle insurance policy, you get back the IDV only.

      But what if your car encounters a total loss where damages are beyond repair? In such a situation, return to invoice cover will come to your rescue. Return to invoice in car insurance is an add-on that covers the gap between the actual value of your car and its IDV. RTI helps to fetch the purchase value of your car in case of theft or a total loss.

      However, before opting for the return to invoice cover, here are a few things that you must know:

      • Return to invoice cover is available only when your car is repairable and usable for over 75% of the Insured Declared Value. However, your car is not eligible for this add-on cover if it is more than three years old.
      • This cover is useful in case of fire or theft and cannot be utilized as an option for minor repairs and dents.
      • You can buy this add-on cover if you live in an area that is accident-prone. For instance, the areas that do not have secure parking or have high car theft chances.
      • The premium of your basic comprehensive car insurance policy increases by 10% upon opting for this cover.

      Return to Invoice vs Zero Depreciation Cover

      Let us now understand the difference between the return to invoice and zero depreciation add-on cover with the help of this table:

      Parameter Zero Depreciation Cover Return to Invoice Cover
      Definition A zero depreciation cover offers coverage for the depreciation borne by the insured car and its parts at the time of claim settlement. Return to Invoice allows a policyholder to receive compensation equal to the invoice value of the insured car.
      What does it do? It fills the difference between the actual cost of various parts of the car and its depreciated value. It bridges the gap between the insured car's IDV and the original value of the car.
      Purchase Limit A zero dep cover can be purchased for cars of up to 5 years. An RTI cover can only be bought for cars that are 3 years old or less.
      Example Mr. A's car got damaged in an accident. However, he has zero depreciation cover as a part of his comprehensive car insurance policy. This cover worked as a financial help because he got compensation for the depreciated value of the damaged parts of the car at their original cost. Mrs. B's car was stolen and could not be traced. Since she has the return to invoice cover as a part of her motor insurance policy, she got the original invoice price of her car at the time of claim settlement.

      In the aforementioned examples, we can see that one sensible decision of these two people has saved them from a lot of financial loss that they would have faced without these add-on covers.

      Over to You!

      A car insurance policy is mandated by law in India. It also provides you financial protection in case of unfortunate events like accidents or theft of your car. However, sometimes, a comprehensive motor insurance policy becomes insufficient which is why add-ons like zero depreciation and return to the invoice cover are offered.

      With zero dep vs RTI, you can understand why these two add-ons are the most advantageous. Nonetheless, it is up to you to decide whether you should buy these add-on covers with your four-wheeler insurance policy or not.

      Frequently Asked Questions

      • Q1. Can I buy zero depreciation and RTI add-on together?

        Ans: Yes. It is possible to buy both zero depreciation and return to invoice add-ons simultaneously along with a comprehensive car insurance policy.
      • Q2. How does zero depreciation differ from comprehensive car insurance?

        Ans: Whereas the amount of compensation offered under a comprehensive policy is after deducting the depreciation of the insured car, the zero depreciation add-on offers full compensation without considering the depreciation of the vehicle.
      • Q3. Does the RTI add-on include coverage for extra accessories?

        Ans: No. Only the insured car's invoice amount is covered under the RTI add-on and not any accessory.
      • Q4. What is the difference between Insured Declared (IDV) and Return to Invoice (RTI)?

        Ans: IDV is the current approximate market value of the insured vehicle, while the RTI is an add-on that compensates the vehicle's original invoice amount in case of a theft or total loss claim.
      • Q5. Does RTI include the car's on-road price?

        Ans: Yes, RTI in car insurance includes coverage for the registration fees and road tax.
      • Q6. Can I buy zero depreciation for older cars?

        Ans: Mostly, the zero depreciation add-on is available for cars not older than 5 years. However, some insurance companies have started offering this add-on for cars up to 10 years old.

      Save upto 91% on Car Insurance
      Search
      Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
      Claim Assurance Program

      Car Insurance Articles

      • Recent Article
      • Popular Articles
      09 Jul 2025

      Can I Add Personal Accident Cover Later if I...

      Insurance providers allow you to add a Personal Accident (PA)

      Read more
      30 Jun 2025

      Car Insurance Renewal in India: A Complete Guide

      Have you found yourself delaying (and eventually forgetting) about

      Read more
      27 Jun 2025

      New Car Insurance Guide: What to Know Before...

      More than 43 lakh new vehicles were sold in India in 2024 alone

      Read more
      19 Jun 2025

      Why There's a Rising Demand for Usage‑Based Car...

      With the growing number of motorists in India demanding fairer

      Read more
      16 Jun 2025

      Car Insurance for Self-Driving or Autonomous...

      Autonomous or self-driving vehicles are the future, as all major

      Read more

      How to Get Your Duplicate Car Insurance Policy...

      Losing your car insurance documents can be daunting, especially when you need them in an emergency or for a routine

      Read more

      How to Transfer Car Insurance Policy?

      Buying a car, even second-hand, is a big decision, and often, people overlook the essential documentation involved

      Read more

      Get Vehicle Fitness Certificate from RTO...

      A vehicle fitness certificate (FC) ensures that a motor vehicle is fit to be driven on roads. As per the Indian

      Read more

      #Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc

      *Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.

      +Savings are based on the maximum discount on own damage premium as offered by our insurer partners.

      ##Claim Assurance Program: Pick-up and drop facility available in 1400+ select network garages. On-ground workshop team available in select workshops. Repair warranty on parts at the sole discretion of insurance companies. Dedicated Claims Manager. 24x7 Claim Assistance.

      top
      View Plans
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL