Things to Know About Return On Invoice (RTI) Coverage in Auto Insurance

Back-to-bill coverage or RTI refers to additional coverage provided in an extensive auto insurance plan. With RTI, you could receive full compensation.

These days, it’s relatively easier to afford a car. With a range of loan options, people are able to cherish the dream of owning a vehicle. People are well aware of what auto insurance is, its benefits and its coverage.


Auto insurance will protect you in the event of an unfortunate incident. But auto insurance isn’t just financial protection when a liability arises. There are a few things that it would help you to be aware of when choosing auto insurance.

One such thing is RTI. RTI or Return to Invoice coverage is a supplement offered to you by the insurance company. This add-on allows you to receive compensation equal to the invoiced value of the vehicle. The claim applies when a car is stolen or when it is beyond repair. Here are some important things to know about RTI.

Overview of RTI in Auto Insurance

When it comes to RTI, this implies that the insurance company will return the value of the vehicle equal to that mentioned on the original car invoice. Note that it is offered by insurance companies in the form of additional cover. The decision to include RTI in auto insurance rests with the car owner. In addition, it is not compulsory by law to opt for the RTI in addition.


RTI’s working mechanism

In normal insurance coverage, the maximum amount of claim you can make is prohibited at its IDV. RTI is an add-on option that helps bridge the gap between the IDV and the car’s billed value. Here, IDV refers to the declared insured value. The best thing about RTI is that it earns you the on-road price of your car. In short, there is no amortization when you opt for the RTI in addition to your car insurance.


Benefits of choosing RTI as an add-on

Here are some of the benefits you would get by choosing RTI as an add-on.

Increase the reach of your coverage

Since RTI is an add-on, you must purchase it with your vehicle’s insurance policy. Add-ons can increase the scope of coverage and make it personalized. But note that RTI is not a free add-on and therefore many people refrain from purchasing it.

Advantageous in the event of car theft

Without a doubt, auto theft has been a threat in India. A lot of people spend their hard earned money on buying a car. However, opting for RTI will make you eligible to receive the invoice value of the car.

Available for new cars

If you are planning to buy a new car, always prefer to include RTI as an add-on in your auto insurance. You would be able to avoid unfortunate incidents in the presence of RTI as an add-on.

But note that there are some cases where RTI is not applicable. For example, RTI is not applicable in the event of a third party policy. Also, you couldn’t go for RTI for an older car. You are not required to make a claim against the RTI add-on for any other damage other than theft.


So, as you can see, there are several beneficial aspects to opting for RTI. Choose RTI today and protect your new car.

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