What Is Return to Invoice Cover (RTI) in Car Insurance?


15 April,2024


02 May,2024

return to invoice cover in car insurance

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    Much like medical, health and life insurance, you can also insure your new car. It is meant to offer some amount of financial security in the event that something undesirable happens to your vehicle.


    However, car insurance goes beyond just covering liabilities. There are certain specific factors one should take into account when buying a policy. So, let’s take a look at what RTI (Return to Invoice) is, some of its advantages, how it operates, and when it can be applied and when not.


    What Is a Return to Invoice?

    Return to Invoice, also known as RTI, is an add-on that can be added to car insurance coverage plans. You can choose it at the time of policy purchase. The add-on car insurance can help you obtain compensation equal to the car's invoice value, which is the original value when you purchased it. The claim applies when a vehicle is stolen or damaged beyond repair. It’s only applicable for a fresh policy on a new car.


    Let’s say your brand-new car got stolen, and the police were unable to track it down; an add-on like this could be a total lifesaver. Aside from that, if you were to be involved in a car accident that damaged the car beyond repair, you could file a claim.


    What Are Some Benefits of RTI?

    The Return to Invoice option can be useful in a number of ways and is for car insurance total loss cover. It can be helpful during dire times, ensuring that you don't have to risk money to buy a car. Here are the benefits of RTI in a car insurance policy:

    • Increases the scope of coverage: Return to Invoice is an add-on car insurance policy. Add-ons increase the scope of car insurance claim settlement and enable customisation.
    • Available for new cars: Some people take good care of their new car than an old one. As a result, it is indeed more emotionally exhausting if a new car is involved in an accident and suffers damage. However, if you get the RTI add-on\ when you purchase car insurance, you can be worry-free in the event of serious harm.
    • Beneficial if the car is stolen: Many cars get stolen on a daily basis. Without RTI coverage, all of the money you paid on a brand-new car will be wasted.
    • Beneficial if the car cannot be repaired: Total loss occurs when a car is destroyed, and repair costs exceed its resale value. So, it is preferable to repair the car and keep whatever little money you obtain. In such cases, RTI can be extremely beneficial. It will let you cover the full worth of the vehicle without worrying about damage, repairs, or salvage.
    • Available with own damage: Among the two types of car insurance policies - basic third-party liability coverage and comprehensive policy - the Return to Invoice Add-on is available with a Comprehensive Car Insurance Policy and includes Own Damage coverage.

    How Does the RTI Invoice Cover Work?

    When your newly bought vehicle is damaged beyond repair or stolen, the Return To Invoice insurance comes in. There are situations where you might need total loss coverage for your car insurance. Here are some common situations:

    • Fire: A car that explodes due to fire causes significant damage.
    • Flooding: Water can infiltrate crucial components of a car and do significant harm.
    • Landslides: Large rocks, trees, and garbage can crush and destroy the car beyond repair.
    • Accident: An accident, particularly with a larger car, can result in total loss.

    That’s when you can get a car insurance claim settlement against the RTI under your car insurance coverage. It is important to note that without this coverage, you are liable for the car's Insured Declared Value in the event of a total loss or theft.


    When is RTI Cover Applicable?

    Assume you buy a car and park it on the road near your house. But the car gets stolen, so next, you will have to file an FIR, and the police are unable to locate the vehicle during the inquiry. That’s when the RTI car insurance total loss cover can be used. The original car invoice can be needed to raise the claim. Here are some situations in which you can cover RTI:

    • If you live in a theft-prone area
    • If your car is stolen from parking lot
    • If you had an accident and don't have money to pay the costs of repair
    • If you live in an area prone to natural disasters
    • If your car is less than three to five years old

    When Is RTI Cover Not Applicable?

    The Return to Invoice coverage is quite beneficial for people who purchase it in combination with their Comprehensive Car Insurance Policy. But, it can only be obtained under specific conditions. Here are some situations where RTI coverage isn't relevant:

    • Third-party liability is not covered under the RTI policy.
    • If your car is a certain number of years older, you won't be able to purchase RTI in car insurance. It depends on the terms and conditions of the insurance policy.
    • If your car has minor damages, you can't get RTI coverage even if you raise a claim for it.


    Return to Invoice car insurance is essential if you are purchasing a new car and want full security from any unforeseen incidents. The RTI coverage will keep you protected and ensure that your investment remains safe in case of a mishap. Make sure you carefully read the terms and conditions of your insurance policy to understand the coverage offered and the situations where RTI can be claimed.



    1. Can I purchase an RTI cover after my car is older than 3 years?

    Yes, you can purchase RTI even after your car is more than 3 years old, but only if your insurance company provides add-ons for your car.


    2. Can I cover minor damages to my car under RTI?

    No, you cannot cover minor damages to your car even if you file a claim.


    3. When can I purchase RTI insurance coverage?

    You can buy RTI insurance coverage immediately after purchasing your new car. You can also cover RTI cover at the time of renewal if your car is less than 3-5 years old.


    4. Is the Return of invoice cover worth it?

    The value of Return to Invoice insurance depends on the car, insurance coverage, personal finances, cost, and length of ownership. Analyse your situation and the pros and cons before choosing RTI. Also, make sure you understand its terms and conditions.

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