When buying a car insurance policy, most car owners only think about the basic protection against accidents or third-party liability. However, if your insured car is stolen or suffers a total loss, a standard car insurance plan may not pay you the full amount you originally spent on your new car.

This is where the return to invoice cover (RTI) comes in. Also called invoice protection cover, this add on cover bridges the gap between the insured declared value (IDV) and the original purchase price of your insured vehicle. In simple terms, RTI ensures you recover the full invoice value, including ex showroom price, registration fees, and road tax, in case of complete damage or theft.

What is return to invoice in car insurance?

RTI in car insurance is an add on available with a comprehensive car insurance policy. It pays the difference between the insured declared value and the invoice value of the car.

A standard car insurance policy pays only the IDV (depreciated value).

With rti car insurance, the insurance provider gives you the full invoice price of your car, effectively covering depreciation.

This invoice cover in car insurance provides financial protection for new car owners and ensures peace of mind.

Benefits of RTI (invoice protection) add-on cover

Opting for an RTI cover offers multiple advantages:

• Financial protection: Get the full invoice price instead of depreciated claim amount.
• Car replacement price: Helps you replace the insured vehicle with the same make and model.
• Comprehensive coverage: Includes ex showroom price, registration fees, and road tax.
• Reduced financial burden: Protects you from major financial loss in case of theft or total damage.

How does return to invoice cover work?

If your insured car is declared a total loss or theft:

• The insurance company assesses the situation.
• Without RTI, you receive only the insured declared value IDV.
• With RTI, you receive the full invoice value, including all costs from the car’s invoice.
• This means instead of a reduced claim settlement, you get your original purchase price back.

When is the return to invoice cover applicable?

The RTI add on is applicable in situations like:

• Car theft where recovery is impossible.
• Total loss or theft due to accidents, floods, or fire.
• When repair costs exceed the car replacement price.

When is the RTI cover not applicable?

The RTI cover in car insurance does not apply to:

• Minor damages or small repairs.
• Normal wear and tear of the insured vehicle.
• Cars older than 3–5 years (depends on insurance provider).
• Policyholders who only have a standard car insurance policy without add on covers.

How to calculate RTI?

The RTI coverage is calculated based on the car’s invoice cost, which includes:

• Ex showroom price
• Road tax
• Registration fees

This means the claim amount under RTI car insurance equals the invoice insured declared value, not the depreciated IDV.

How to opt for RTI cover?

To add return to invoice RTI:

• Buy a comprehensive car insurance plan.
• Select the RTI add on at the time of purchase or renewing car insurance.
• Pay the extra premium for the invoice add on.
• Ensure your insurance company confirms the claim process clearly.

How much does return to invoice cost?

The cost of rti cover depends on the:

• Car’s invoice value
• Insurance provider
• Type of motor insurance policy

Usually, it increases your comprehensive car insurance policy premium by 10–15%. For luxury car owners, this extra cost is negligible compared to the financial protection it provides.

Example of RTI in car insurance

Situation: A brand new car worth ₹25 lakh (on-road, including road tax and registration fees) is stolen.

• Standard insurance policy pays only the IDV, say ₹20 lakh.
• With RTI coverage, the insurance company pays the full invoice price of ₹25 lakh.
• The vehicle owner gets back the complete invoice value and avoids a financial burden.

Who should opt for a return to invoice protection cover?

• New car owners who want to secure their high investment.
• Luxury car owners where depreciation causes high financial loss.
• People buying cars in metro cities with higher theft risk.
• Comprehensive car insurance policyholders who want stronger car insurance coverage.

Validity of the invoice protection cover

• Available only with a comprehensive car insurance policy.
• Typically valid for new cars up to 3–5 years old.
• Can be renewed along with your car insurance plan.
• Must be chosen as an add on cover at the start or renewal.

Which add-on is better – zero depreciation or RTI?

Zero depreciation cover: Removes the depreciation deduction on parts during claim settlement, but does not cover theft or total loss.

Return to invoice cover: Pays the full invoice price in case of car theft or total damage.

Both have different uses. Many car insurance companies offer both as car insurance add ons for maximum financial protection.

Frequently asked questions

1. What is the difference between zero depreciation and return to invoice?

Zero depreciation cover applies to part replacements, whereas RTI coverage is designed for complete loss or theft situations.

What is EP and RTI in car insurance?

EP stands for engine protection cover, while RTI in car insurance refers to return to invoice cover. Both are additional car insurance add-ons.

What is the validity of return to invoice cover?

Typically, it is available for cars up to 3–5 years old when purchased with a comprehensive car insurance policy.

What is return to invoice in car insurance?

It is an add-on cover that reimburses the full invoice price instead of the depreciated IDV in the event of car theft or total loss.

Is RTI good for car insurance?

Yes, it offers financial protection by covering the full invoice value, making it especially beneficial for new car owners.

Are minor damages covered under RTI?

No, RTI add-on applies only to total loss or theft and does not cover minor repairs..

Conclusion

The return to invoice cover in car insurance is one of the most useful car insurance add ons for new car owners and those driving premium vehicles. Unlike a standard car insurance policy that only pays the insured declared value, RTI car insurance ensures you get the full invoice value, protecting you against heavy financial loss.

For maximum safety, car insurance policyholders should combine RTI coverage with zero depreciation cover and other invoice add ons like engine protection cover. Together, these ensure complete car insurance coverage and peace of mind in case of unforeseen events.

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ARN: Zuno/Blog/DM/Return to invoice (RTI) cover in car insurance/08/25/13