Return to invoice or RTI generally defines going to the initial exact original amount of the product as mentioned in the invoice of that product. This is the exact definition which applies to the Return to Invoice add-on cover in car insurance. RTI is an add-on cover where you buy along with car insurance. The benefit of buying this add-on helps you to get a new car in case of car theft, the car lost in natural calamities, lost your car in an accident, etc. When you have comprehensive car insurance only partial amount can be claimed during any damages to the car that is Insured Declared Value or IDV at the time of damage/theft but with RTI the insurance company gives you the approximate invoice value of the car during the claim. But RTI is only applicable in case of a total loss of the car and not for minimal damages.
IDV or Insured Declared Value is the current value of the car where the owner of the car declares the value while purchasing the car insurance or while renewing the car insurance. If the owner sets the value of the IDV as high, the cost of the policy will also increase and while setting the IDV as low, will decrease the cost of the policy. It is ideal for the owner of the car that he sets the IDV approximately equal to the current market value of the car.
Buying RTI add-on cover benefits you with,
- Extra coverage for your car where your car is protected from any kind of internal or external damages and so it gives you a new car in case of a total loss or theft.
- In case of theft, this add-on ensures that you get a new car without giving any money from your own pocket and that becomes extremely beneficial.
- In case of a total loss of the car where at a point it cannot be repaired since the repairing amount is more than selling a car or more than what you expected. In this case, RTI helps you by giving zero money from your pocket.
Return To Invoice add-on is suitable for people,
- Who has a brand new car. RTI is applicable to people who have cars that are less than 5 years old.
- People who live in areas where theft is common and this helps you to get a brand new car with RTI cover.
- People who live in areas where natural disasters occur most commonly and RTI cover helps them to get a brand new car if the car is beyond damaged.
Return To Invoice is not applicable when,
- People who have cars which is more than 5 years old and RTI is not applicable to those kinds of cars.
- People who have cars that are only partially damaged and can be repaired easily. In that case, they will not receive any new cars and RTI is not applicable.
- If your car is stolen and if you do not have an FIR copy for the theft then RTI will not be applicable unless you have proof towards the stolen car.
Like any add-on cover, even RTI has its time period of one year with your car insurance. And the policyholder has to renew the policy after which the insurance had expired.
