What is RTI insurance?

“Protects you against significant depreciation loss by reimbursing your car’s full invoice.”

Purchasing a new motor vehicle requires a significant amount. Also, it’s a moment of enthusiasm, satisfaction, or careful budgeting. But imagine the scenario when a brand-new car is stolen or suffers severe damage. This is when, if you have regular car insurance, it will only reimburse the vehicle’s depreciated value. But this is when you will receive a smaller amount than what you paid in the showroom. This is when RTI came into existence.

So, what is RTI insurance?

RTI refers to return to invoice. It is a motor insurance add-on that bridges the gap between the insured declared value and the vehicle’s original value. The add-on service allows an individual to receive the full invoice amount, including the road tax or registration. The vehicle’s depreciation does not affect the receivable amount.

Key aspects: What is RTI insurance?

Circumstances when it applies

The add-on service applies only to total loss or constructive total loss when the damage is beyond repair or due to theft.

Know the coverage amount.

The insurance policy covers the ex-showroom price, registration charges, and road tax.

Eligibility criteria

The add-on service is generally available only for vehicles up to 5 years old. The service is not available for older vehicles.

What are the benefits of RTI in car insurance?

Returning to the invoice provides various advantages that make it a worthy option. Here, you can learn a few points that make RTI a worthy option and lead to a higher premium amount.

Full Reimbursement

The biggest advantage of RTI in car insurance is that it provides the invoice price, including registration fee and road tax.

Improved financial security

The RTI coverage option eliminates the depreciation factor, so you don’t have to suffer any financial loss, especially when you have taken a loan against the vehicle.

Get comprehensive coverage

RTI covers your vehicle against theft, total loss, and all natural disasters, providing you with financial stability in the event of a total loss.

Get peace of mind

Since you know your insurance will not be affected by the depreciation of a motor vehicle and you are protected against total loss, you can live with peace of mind.

Investment protection

With RTI coverage, the amount you spend or invest in your vehicle is fully protected.

Key exclusions!

Yes, RTI has various advantages, but you also need to understand what it does not cover.

Regular wear and tear

The gradual deterioration of motor vehicle parts due to regular use is not covered under the RTI add-on policy.

Mechanical breakdown

RTI is strictly for the complete loss due to theft or damage caused by an accident. But it does not include mechanical failures that lead to loss.

Conclusion!

You will be protected against significant financial loss during the first few years, when the motor vehicle is at its peak depreciation. The amount you receive helps you pay off outstanding loans if your car is stolen or totaled. RTI insurance is highly recommended, especially if you live in high-theft areas or areas prone to natural disasters, providing you with financial security in the event of unfavorable events.