Buying a new car is one of the most exciting purchases you can make. However, with this significant investment comes the need to adequately protect it against unforeseen events like accidents, theft, or natural disasters. While a regular motor insurance policy will provide essential financial protection, you may still be left with significant out-of-pocket expenses if your vehicle is written off or stolen.
This is where the Return to Invoice (RTI) add-on cover can prove invaluable. Read on to learn more about return-to-invoice coverage in car insurance.
What is Return to Invoice cover?
Return to Invoice, or RTI is an optional add-on cover with comprehensive car insurance policies. If your insured vehicle is declared a ‘total loss’ or stolen, the insurer will reimburse the original ex-showroom price you paid at the time of purchase.
In other words, RTI cover bridges the gap between your vehicle’s insured declared value (IDV) and the original invoice price. The IDV considers depreciation and is, therefore, usually lower than the original purchase price. With RTI cover, you get the full invoice value, eliminating financial loss due to depreciation.
How does Return to Invoice cover work?
Return to Invoice (RTI) cover is an add-on to your comprehensive motor insurance policy. You can opt for RTI coverage by paying an extra premium over and above your base policy premium. If the insured vehicle is wholly damaged or stolen, the insurer will first pay the Insured Declared Value (IDV) as per the policy terms.
The insurer will also pay the difference between the IDV and the original ex-showroom invoice price of the vehicle. To make an RTI claim, you must submit the original purchase invoice to the insurance company. Most insurers stipulate that the RTI claim must be made within two years from purchasing the new vehicle.
Key benefits of Return to Invoice cover`
Here are some of the significant advantages of having RTI coverage as part of your car insurance policy
1. Protects against depreciation losses
A significant benefit is that it protects you from the losses due to your vehicle’s depreciation. Without RTI cover, you would have to bear a substantial shortfall between IDV and invoice price.
2. Covers the entire original purchase cost
RTI cover ensures you can recover your vehicle’s total original purchase price and don’t have to compromise while buying a replacement.
3. Provides financial peace of mind
Knowing that your investment in the car is fully protected, even in the worst-case scenarios, gives immense mental peace. RTI cover takes care of the unexpected financial burden.
What types of vehicles can be covered?
Return to Invoice or RTI cover is usually available only for brand-new personal vehicles like cars, SUVs, and two-wheelers purchased from authorised dealers. It can be opted for at the time of buying the new car, along with the mandatory comprehensive motor insurance policy.
RTI cover is typically offered for new four-wheelers bought for private use. Insurers may charge a higher premium for imported vehicles, luxury cars, sports models, or high-end cars. Second-hand or used cars are generally not eligible for Return to Invoice cover. The vehicle should be registered in the name of the insured individual buying the RTI cover.
Conclusion
Bring home your dream car worry-free! RTI add-on cover from an insurer safeguards your prized automobile’s invoice value against depreciation. Now, you can enjoy true peace of mind knowing your precious investment is fully protected in case of any unfortunate incident. Drive into the future without financial burdens and experience the confidence that comes with RTI cover. Your car’s original price is secured – Insurance is simplified!
