What Is RTI in Car Insurance and Why You Need It

June 16, 2024

Understanding car insurance is essential for protecting yourself against financial liabilities in case of mishaps. One vital add-on that offers significant coverage is the Return to Invoice (RTI) cover. But, what is RTI in car insurance and why is it beneficial?

What is RTI in Car Insurance?

Return to Invoice (RTI) is an additional coverage option that can be added to comprehensive car insurance plans. It ensures that in the event of substantial damage or theft, the policyholder receives compensation equivalent to the vehicle's original invoice value, without considering depreciation. Simply put, it bridges the gap between the Insured Declared Value (IDV) and what you initially paid for your car.

what is rti in car insurance

Benefits of RTI Cover

RTI cover is particularly advantageous for new car owners. It is designed to provide comprehensive financial protection in situations like total loss, theft, or severe damage caused by accidents or natural disasters. Here are some significant benefits:

  • Full Financial Coverage: Unlike the standard coverage which accounts for depreciation, RTI ensures you receive the entire amount that you originally paid for the car.
  • Applicable in Various Scenarios: Whether it's due to accidents, fire, flooding, or landslides, RTI covers many unfortunate incidents.
  • Advantageous for New Cars: Vehicles that are less than three years old benefit the most from RTI coverage.

When RTI Cover Is Not Applicable

There are some instances where RTI cover may not be applicable, and it is essential to be aware of these limitations:

what is rti in car insurance

  • Minor Damages: RTI does not cover small dents or minor repairs.
  • Third-Party Liability Policies: It is only available with comprehensive car insurance plans that include own damage coverage.
  • Older Vehicles: RTI is typically not available for cars older than three to five years, depending on the insurer.
  • Non-filing of FIR: In the event of theft or serious damage, failing to file an FIR can invalidate your RTI claim.

Is RTI Worth the Cost?

Given that RTI cover costs approximately 10% more than a comprehensive insurance policy, is it worth the extra premium? Here are some factors to consider:

  • If you own a new car, especially an expensive one, RTI cover provides peace of mind by ensuring you can recoup the full purchase price in case of a total loss or theft.
  • For those in theft-prone or disaster-prone areas, RTI can offer significant financial protection and reduce potential losses.
  • Understanding the policy terms and assessing your personal needs can help determine whether RTI cover is a necessary addition to your car insurance.

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