RTI or Return to Invoice is an optional add-on benefit that can be purchased in addition to a comprehensive car insurance policy. This add-on benefit provides financial protection to the policyholder in case of total loss or theft of their vehicle. It covers the difference between the Insured Declared Value (IDV) and the actual purchase price of the vehicle.
The cost of an RTI cover varies depending on a few factors. Firstly, the age of the car is a significant factor in determining the cost of RTI. Generally, the older the car, the lower the RTI cost. Additionally, the model of the car also plays a role in the cost of the RTI. Luxury or high-end cars may have a higher RTI cost compared to regular cars.
Typically, the cost of an RTI policy is 10% higher than the premium for a comprehensive car insurance policy. However, the actual cost of RTI may vary from insurer to insurer and based on the car's specific details.
It's essential to keep in mind that an RTI cover is an optional add-on benefit and not a mandatory requirement for car insurance. It's up to the individual policyholder to decide if they want to purchase an RTI cover based on their specific needs and budget.
When your car is stolen or gets into a shape beyond repair, an RTi cover comes to your rescue. This will ensure that you receive compensation that amounts to your car's original invoice amount (including paid government taxes). The benefits of RTI add-on covers are listed below:
RTI covers are best suited for new cars because they will get you the original price in case of any mishaps.
It increases the security of your existing insurance plan.
It is extremely beneficial in cases of theft without a trace.
With RTI compensation, you can get the same model of the car in case of theft or extreme damage. This is possible because you will be compensated with the original value of the car when it was bought.
Most insurance companies calculate RTI claim amount based on:
The price of your car that was invoiced in the showroom, the road tax and the purchase registration.
The replacement price of your car is based on the showroom price, the road taxes, and purchase registration costs.
The amounts are calculated for the two and the lowest among them is sanctioned for the RTI claim.
You cannot claim it for minor damages, dents or repairs. Instead, they are usually claimed under the following circumstances:
If your car was stolen and the police are unable to trace it, you can apply for it.
If your car meets with an accident and is damaged beyond repair, you can apply for it.
You can apply for RTI benefits if your car is aged 3 years and below. This is because insurance companies give this add-on cover to new cars. As a car ages, its value depletes.
Return to Invoice (RTI) is an optional add-on benefit for a comprehensive car insurance policy that covers the difference between the Insured Declared Value (IDV) and the actual purchase price of a vehicle in case of total loss or theft. To know more about the RTI add-on cover, download the Park+ app. Alternatively, for more information on RTIs or car insurance.