June 13, 2024
New Delhi
Finance Insurance

What is the Return to Invoice in Car Insurance?

Return to Invoice in Car Insurance

The availability of vehicle loans from banks and NBFCs has made it much simpler for people to afford cars nowadays. Nevertheless, purchasing a car is an expensive and significant financial commitment. However, you must also make sure you buy car insurance if you are fortunate enough to cross this item off your bucket list. 

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Although the Motor Vehicle Act of 1988 mandates that all vehicle owners have third-party liability insurance coverage, common sense tells us that investing in a comprehensive auto insurance plan that provides all-around protection for your vehicles is preferable. Such a policy offers numerous add-on covers in addition to safeguarding your vehicle from collisions, theft, natural disasters, and other calamities.

Advantages of Car Insurance

Car insurance coverage comes in two flavors: third-party car insurance and comprehensive car insurance. As was already noted, every car owner in India must carry third-party insurance. But the owners themselves are not adequately covered by it.

  • Coverage: A car insurance policy will insure you for both your own damage and third-party damage, depending on the type of coverage. Own damage insurance coverage covers both the expense of repairing damages and the cost of treating owner-driver injuries.
  • The No Claim Bonus: You are eligible for a No Claim Bonus, or a reduction in the cost of automobile insurance, if no claims are made during the active policy year.
  • Clarity of Mind: Complete peace of mind is a necessary part of life, which is provided by car insurance for those who are car owners. One does not have to be concerned about the sudden financial crisis that car insurance provides. The owner of the car feels very relaxed if the car is stolen or damaged, and he has already taken out car insurance.

What is Return to Invoice Car Insurance?

The “Invoice to Return” cover is an effective way to get an add-on cover by purchasing the new insurance policy. Purchasing insurance can be compared to setting aside funds to protect your finances in the event of an accident. But when you have an insurance provider on your side, the magnitude of these savings grows significantly. 

Because no one should suffer a financial loss due to an accident, the government has made purchasing auto insurance necessary. RTI, or Return to Invoice Cover, is simply an extra choice made available by your auto insurance company. The add-on option essentially fills the gap between your car’s insured declared value and its invoice value. 

If you choose RTI coverage as part of your auto insurance, you can receive your money back if your automobile is lost, stolen, or suffers irreparable damage.

Advantages of the “Return to Invoice” Option in Car Insurance

  • Validity and Price: You could have to pay about 10% more for the RTI insurance coverage than for a standard comprehensive auto insurance plan. Additionally, the add-on cover is only available with new cars and is only good for three years from the date of the car’s first purchase. Due to the fact that vehicles older than three years usually exhibit significant wear and tear, the return-on-invoice option is suspended after this time. If an RTI claim is filed, insurance companies cannot overlook this element since they would incur losses for providing this service and would have to declare a loss.
  • Full Compensation or Insured Declared Value (IDV): When it comes to car insurance, if you choose not to go for RTI, the insurer will merely get a refund for the whole sum assured specified in your policy, which is the insured declared value (IDV) that has been adjusted to account for annual depreciation values. It should be noted that within the first six months following the date of purchase, a vehicle’s value starts to decline by 5%. The vehicle’s worth depreciates by 10% in a year, and the percentage keeps increasing with each passing year. If something happens to your car during this time, you would be taking a large loss because the value of the car would have declined. However, if you have RTI car insurance, you can stop worrying about your car’s value decreasing and may get the full value of the car in case of an accident.
  • RTI Protects Your Car From Theft. As previously noted, if you have RTI coverage, you can get your money back if your automobile is stolen during the first three years after purchase. Since you may recover the full cost of your vehicle in the event that it is stolen, RTI cover is crucial for people who don’t have secured parking places or who live in neighborhoods that are prone to theft.
  • RTI Guards Your Vehicle From Harm Brought on by Collisions. If you have the return-to-invoice add-on with your auto insurance policy, you become entitled to full repayment of the real cost of the automobile in the event that your car sustains damage that cannot be repaired. As a result, in the event of irreparable damage to your vehicle, it is covered by return-to-invoice coverage through full repayment of the vehicle.
  • RTI protects Your Car from Accident-Related Damage. If your automobile insurance policy includes the return to invoice add-on, you will be qualified for full repayment of the actual cost of the car in the event that an accident results in damage that is beyond repair. Therefore, you can get back your full investment, including the car’s on-road price, in the event that irreparable damage is inflicted on the vehicle within the first three years.
  • It Enables You to Drive Calmly: Knowing that your automobile is insured allows you to travel worry-free, free from the inescapable worry that any damage to your car will result in you having to pay a hefty repair bill.


To choose the car you want to buy, you can devote a lot of time and research. But it’s equally important to make sure you get the correct auto insurance policy, as it can really save your life in a number of circumstances. Because of this, you might want to consider Liberty General Insurance automobile insurance coverage.

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