What Is Return To Invoice In Insurance​?

“A valuable add-on cover, especially suitable for people living in theft-prone areas”

If you are a first-time vehicle owner, then understanding the Return to Invoice helps you in making better decisions before you purchase Insurance. It is an add-on insurance plan that provides an additional financial cushion to you during any major loss.

What is return to invoice in insurance​?

Return to invoice is an add-on cover that ensures you will get the exact amount of the vehicle you have purchased in case of complete loss or theft. An individual will receive the complete amount of the vehicle, including ex-showroom price, road tax and showroom price.

You might have heard that the vehicle price depreciates at the same moment when it comes out of a showroom. This is when the policy protects you from any kind of loss, including the loss of depreciation. It is especially great for a few years of the vehicle.

Basic purpose

RTI bridges the gap between the insured declared value and the original price of the vehicle. It protects you from the depreciated value of the vehicle. Now, you got the answer of what is return to invoice in insurance​? Let’s get to know more about it!

Key Highlights

Total loss or theft

This add-on policy is strictly applied to severe scenarios only. This involves only the scenarios that lead to complete loss of the vehicle or more than 75% loss of the vehicle. The policy does not work in cases when the vehicle requires minor repairs. No partial damage claims will be accepted under the policy.

Vehicle Age

The policy can be purchased only when the age of your vehicle is up to 5 years from the date of purchase. Sometimes, it can only be obtained when the vehicle is up to 3 years old.

Advantages and disadvantages of RTI cover!!!

• Get full Financial Protection.

Of course, the biggest benefit of the cover is that you are going to receive your vehicle’s Original invoice value in case of complete loss.

• Neutralize depreciation

You won’t lose any money due to the depreciation process, regardless of the vehicles’ reducing market value with the passage of time.

• The benefit of loan protection

This is especially useful for financed vehicles since RTI payout helps in clearing the loan amount compared to the IDB-based claim amount.

• Get Peace of Mind

Vehicle buyers don’t have to worry about the theft of their vehicle, especially if they are in high-risk areas. Also, they can financially protect themselves from natural calamities like floods and in other total loss scenarios.

Limitations

• The policy cover is available only for new vehicles or relatively new vehicles.
• The cover is applicable only in cases of total loss when the damage is more than 75%.
• It adds an additional cost to your insurance premiums.

Bottom line: Don’t bear the financial burden after a bad incident

In the end, RTI is a great solution for new car owners. If you want full compensation in case of damage to your vehicle, then this is the right cover for you. It eliminates the depreciation financial setback, allowing you to get the full amount of your vehicle that you have paid in the past to the showroom.