Benefits of Return to Invoice Cover (RTI) in Car Insurance

A standard comprehensive car insurance policy does not encompass all aspects of your car such as depreciation. If you have comprehensive car insurance , you only get Insured Declared Value (IDV) and not the market price of your car in the event of a complete loss.

Return to invoice is an add-on option that covers the difference between your vehicle's declared insured value and the invoice value, together with the registration and other relevant taxes. In the event of theft or complete loss, RTI assists you in securing the purchase value (on the road price) of the vehicle.

Benefits of Return to Invoice Cover

In different ways, the return to invoice cover add-on can be helpful. In a time of need, it can be a great financial aid and one does not have to risk losing one saving to purchase a car. Here are some of the benefits of a return to invoice cover

1. Increases the Coverage Scope: Return to Invoice is an add-on, which ensures that you can purchase extra coverage for your car insurance policy. Add-ons raise the coverage scope and make it personalized. However, not everyone decides to buy this cover, because it is not free coverage.
2. Available for New Cars: Compared to an old car, some people take extra care of their new car. Thus, it is also true that if a new car meets with an accident of some kind and damage is suffered, it is more emotionally draining. If, however, one has purchased the return to invoice cover add-on when purchasing car insurance, in case of significant damage to the car, he/she could be worry-free.
   
   
3. Available with Own Damage: There are two types of car insurance policy. The first is the basic coverage of third-party liability and the second is a comprehensive plan providing various coverages. The return to invoice add-on is available with a comprehensive car insurance policy, that is, own damage cover. Thus, with the assistance of return to invoice, you can improve the benefit of a comprehensive car insurance policy.
4. Beneficial In Case of Total Loss: Total loss is a case in which a vehicle is damaged in a way that it will cost more than its resale value to repair. It would also be safer to salvage the vehicle and retain what little money you get. In such a case, RTI may prove to be a boon. Without thinking about the damage, repairs, or salvage, it will enable you to get the full value of the vehicle.
5. Beneficial In Case of Theft: In India, car theft is very common. Your car may be stolen by anyone with a malicious motive. Without the return to invoice cover, the money that you spent on purchasing a brand-new car will go waste.

Things to Keep in Mind About the Return to Invoice Add-on Cover

1. The Return to Invoice Cover will not help cover the costs of the small dents or repairs of your car. It only comes into effect when the insurance provider must compensate the entire IDV of the car.
2. The Return to Invoice Cover is only useful when there is a case of total loss or theft of the car. It is in such cases that the add-on cover will then cover the gap between the Invoice price of the car and the IDV that the insurance company will offer as compensation on a usual basis.
3. When you file for an insurance claim a large amount of the cost of the car is not compensated. This is because of the depreciation of the car. The return to invoice add-on cover will help you bridge this gap between the invoice price and the compensation amount.
4. Keep in mind, the return to invoice cover is not available for cars that are older than 3 years.

Conclusion

In a nutshell, the return to invoice cover is an add-on that can be purchased along with standalone own-damage covers or with a comprehensive insurance plan for your car. The add-on fills the gap between the compensation paid by the insurance provider and the invoice price of the car in the case of a theft or total loss. The return to invoice ensures that the insurance provider will reimburse the price of the vehicle roughly equal to that shown on the initial invoice of the car in the event of a major accident. Every return to Invoice Cover offers a number of benefits for owner-drivers who have new cars, live in accident-prone environments or have their car stolen. The cover can make a significant difference during claim settlement. The decision to take the return to invoice in car insurance is taken by the vehicle owner and by statute is not mandatory.

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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.