What Is Return To Invoice: You might have heard the name “Return To Invoice” (RTI) while taking car insurance. But, what is this? Perhaps many people do not know this, whereas it is a very useful thing and can prove beneficial for you.
If the car is stolen on return to invoice, your insurance company does not pay the IDV but the full price of the car (as much as you took it). For this, you also have to take “Return to Invoice” while taking comprehensive insurance. However, this increases the insurance premium. This can be about 10% more than the standard premium.
What is return to invoice?
Return to Invoice (RTI) is an add-on cover to car insurance that entitles you to claim the entire purchase price (invoice value) of the car in case of total loss or theft. It is taken along with comprehensive insurance and protects the car from value depreciation.
That is, you can claim the price of the car (invoice value) at the time you purchased it. This claim is made when the car is stolen or is so damaged that it cannot be repaired.
Suppose your car is stolen and the police is unable to find it. In such a situation you may get into a lot of trouble. You will not be able to get back a large part of the money you invested in buying a car through standard insurance claims.
Similarly, if your car is so badly damaged in an accident that it becomes impossible to repair it, you can still take a claim from the insurance company. But, in both the cases, the IDV value of the car is available in standard insurance, which is arrived at after depreciation.
This is where RTI comes in handy. If you have taken RTI cover, then in case of total loss or theft, you will get the amount you spent while buying the car. RTI saves you from losses due to depreciation.
