What is Return to Invoice In Car Insurance
Purchasing your favorite car is a huge investment for the future, and protecting it with the right car insurance is important at the same level. While a regular car insurance policy covers damages and theft, it may not always provide full coverage to your vehicle in case of a total loss.
However, with the Return to Invoice (RTI) add-on, you can get the right value as the compensation amount. It offers the actual invoice price of your car, including its registration and tax expenses, in case of theft or total damage.
This blog will help you to know more about RTI, its benefits, calculation method, and coverages. Let’s start diving into the topic.
What is Return to Invoice?
Return to Invoice ensures 100% coverage for the policyholder if the car is damaged or stolen. It is an add-on that offers a full refund of the invoice amount of the car without any deductions. Normal policies cover the net value (value after depreciation), but RTI covers the total purchase price, including all the taxes and registration fees.
1. How to calculate RTI
Calculating the Return to Invoice is very easy. All you need to know is the invoice price of your car. Your coverage amount is almost the same as the car's invoice price. It includes the on-road price, tax paid, and registration charges of the car.
Note: You should have your original invoice, as it may be required for claims.
Who Should Buy RTI?
RTI is a suitable add-on for you if you belong to any of the four categories:
- You have a new car.
- You are a luxurious car owner.
- Your area is prone to natural calamities.
- You live in an area with a high risk of theft.
Benefits of RTI
RTI, as an add-on, has several benefits. Some of them are as follows:
- Assists in case of theft: If your car is stolen, then RTI helps you to get the full value of the car’s on-road price as a compensation amount.
- Good for new cars: You do not have to worry about the damage expense and theft of your new car with RTI. It covers all the major expenses relating to it.
- Coverage for loss: RTI gives full compensation for your car in case of severe damage that impacts more than 75% of the car.
- Helps in replacement: RTI assists the driver in replacing a fully damaged car by providing complete compensation.
Inclusions of RTI
The following expenses are included in the RTI add-on:
- RTI pays the full invoice price if your car is stolen or totally damaged.
- Mostly available for cars under five years of age.
- Useful in high-risk cases like natural disasters.
Exclusions of RTI Add-on
Some expenses that are not covered under RTI :
- RTI is only available with a comprehensive plan, not third-party insurance.
- Normal wear and tear is not covered.
- Does not cover minor damages and mechanical issues.
Differentiation Between Zero-Depreciation and RTI
There are some basic differences between zero-depreciation and RTI. Let's understand them:
| Basis | Return to Invoice | Zero Depreciation |
|---|---|---|
| Meaning | It offers the full invoice amount in case of theft or total loss relating to your car. | It offers coverage for repair costs without the deduction of depreciation. |
| Covers | Provides coverage up to the invoice value of the car. | Provides coverage without considering depreciation |
| Claim made for | Total loss or damage and theft | Repair and partial damage |
| Vehicle’s age | It should be less than 5 years. | It should be less than 3 years. |
| Premium amount | It costs a lower premium. | It has a comparatively higher premium. |
Conclusion
In conclusion, RTI add-on is one of the important insurance add-on that ensures full-value compensation for your car. It is always advisable to get a Return to Invoice for your car to claim the full invoice value at the time of total loss. Along with financial assistance, it offers peace of mind to the insured.
Purchasing RTI is not an expense but an investment for financial assistance. In case you have any issue regarding the RTI purchase, feel free to contact our customer support service without any second thoughts.
What are the benefits of purchasing the RTI add-on?
You can pay the full invoice amount of your car at the time of theft and damage.
How can I calculate Return to Invoice?
The amount of RTI depends upon the on-road price of the car. It includes invoice price, registration fee, and tax expenses.
Can I get RTI coverage for regular wear and tear?
No, RTI does not cover normal wear and tear of the car.
Is the RTI add-on compulsory?
No RTI is compulsory to buy. But it is advisable to purchase this add-on if you have a new or luxurious car, live in a natural disaster-prone area, and have a higher risk of threat.
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