Should You Consider Getting Return-to-Invoice Cover?
Since RTI has specific limitations, consider whether it's worth getting. It's important to note that not every car owner will need this cover. However, it is beneficial for some, such as the following:
1. New Car Owners:
Your car's value will depreciate over time. In the initial years, the car value will depreciate significantly. Depreciation is highest during the first few years. Along with the zero depreciation cover, also get the RTI cover. In the event of a total loss of your car, you will be fully compensated.
2. Loan-financed Cars:
If you have bought the car on loan, get the RTI coverage. In the event of any unforeseen circumstance, such as theft or total loss, RTI will fully repay the bank. Therefore, your personal funds and expenses won't be affected.
3. Luxury Car Owners:
The investment in luxury cars is high. Therefore, it is not wrong to secure it. If you're a luxury car owner, you must get an RTI. This is to ensure complete protection against high taxes and registration costs.
Read More: Is Return to Invoice Cover Worth It in Car Insurance
What Factors Affect the Cost of Return to Invoice?
When you connect with a car insurance company to buy RTI cover, you should look into the factors that affect these costs. Originally, the premium could range from 1.5% to 3% of the vehicle's total invoice value. This applies to the total-loss scenario, so investing a bit extra is totally worth it.
Some of the key factors that can affect the cost of return to invoice cover include the following:
1. The make and model of the car
2. The original invoice value of the car
3. The pricing structure of the insurer
4. What are the extra add-ons in the policy
Read More: All You Need to Know About Zero Depreciation Car Insurance
What if you have a car that’s older than five years? Can you get the full value?
As your car is older than five years, it will have less relevance to the invoice. This is because the car’s depreciation value will keep increasing with each passing year. Moreover, the car’s depreciation value is the highest in the initial years. Therefore, you will not receive the full value even if you file a claim. Nonetheless, it is advisable to submit all the relevant documents to the car insurance company.
In the event of a policy lapse, will your RTI benefits be affected?
Yes, your RTI benefits will be affected if your policy lapses. When you renew your main policy, you will also have to renew the RTI. Not doing so ensures that the RTI benefits don't apply to the policy. Therefore, claim settlement can be a challenge.
Expert Note
This information is based on standard motor insurance guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) and commonly followed industry practices. Policy coverage and conditions may vary by insurer.
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