Having a car is no longer a luxury but more of a necessity. With cities spanning across kilometres, commuting via public transport has become an arduous task. This is where having a car makes it easier and convenient to travel.
These days easy finance options are available that makes it affordable to own a car. But all your responsibility does not end there; you need to maintain your car too. Also, the Motor Vehicles Act makes it mandatory for every vehicle registered in the country to have a valid copy of an insurance certificate. Third-party car insurance is the minimum requirement but is more logical to buy a comprehensive cover for more inclusive protection of your car.
A comprehensive plan can be a safety net to ensure any damages or injuries to your car, or others is covered by your insurance plan. These plans can be added with add-on covers that ensure your precious car remains in its pristine condition at all times. One such smart add-on is the return to invoice or RTI cover.
What is a return to invoice cover?
Return to invoice or RTI cover is where the insurance company returns the approximate value of the car in case of major damage or total loss. This approximate value is the one mentioned as per the invoice price.
Insured declared value or IDV is the amount that is declared by you, the policyholder at the time of buying or car insurance renewal. It is the estimated market value. But when making a claim, the insurance company deducts depreciation from such IDV and then pays the balance in an event of total damage or loss. Thus, there remains a gap between your purchase price and the market value at claim date. To fill this gap, you can make use of a return to invoice cover.
Benefits of purchasing a return to invoice cover
#1 Increased coverage
RTI is an additional feature that you can purchase. Since add-ons are customisable as per your requirements, it ensures you have increased protection depending on your need.
#2 Available for new cars
The RTI car insurance policy differs among different insurance companies for its applicability. Some insurers offer a return to invoice cover for cars not more than three years old whereas a few others up to five years. Thus, make sure you select the right insurer than offer a cover for your brand new car.
#3 Helpful in event of theft
Car theft is a common scenario in India. An individual with malicious intent can steal your car. Without an RTI cover, you will only receive a certain percentage and will bear a loss at the time of claim.
#4 Saviour at times of total damage
Total loss or damage is a situation where the damage to your car is beyond repairs or the repair cost is more than its resale price. This, at such times, it is advisable to salvage the car instead of repairs. During these times, an RTI cover can prove to be a saviour as you can get the entire invoice value of your car as the claim amount without worrying about damages and repairs.
While you can buy an RTI cover, do check for other essential add-ons that can be suitable as per need. A car insurance calculator will help to evaluate the various alternatives and at the same time keep the premiums in check. To conclude, an RTI cover is one of the best ways to enhance your already comprehensive car insurance policy.
