One key feature that car owners should be aware of is “Return to Invoice” (RTI) coverage. RTI is an add-on feature in car insurance policies that provides protection financially in case of total loss or theft of your car. Such add-on feature in car insurance plays a crucial role in protecting your car from unexpected damages or losses caused due to accidents. Kotak general insurance will delve into the significance of return to invoice in car insurance claims and how it can benefit car owners.
Understanding return to invoice (RTI) coverage
Return to Invoice (RTI) coverage bridges the gap between the Insured Declared Value (IDV) and the original invoice price of the car. It is an optional add-on feature offered by many insurance companies. In the event of total loss or theft of your vehicle, where the repair cost exceeds a certain percentage of the IDV, Kotak car insurance compensates you for the original invoice price of the car instead of the depreciated IDV.
Significance of return to invoice (RTI) coverage in claims
- In case of a severe accident or theft leading to a total loss of your car, the RTI coverage ensures that you receive the original invoice price of the car as the claim settlement amount. This is particularly significant because the IDV of a car decreases over time due to depreciation. Without RTI coverage, you may receive a considerably lower claim amount based on the depreciated IDV, which can be a large financial setback.
- The IDV of a vehicle is the maximum amount that is paid to policholder in case of a total loss. However, the IDV is calculated after considering depreciation, which means it may be significantly lower than the original invoice price of the car. RTI coverage fills this gap by providing compensation based on the invoice price, ensuring you are not left with any burden financially for your car.
- By opting for RTI coverage, one can protect themself from the impact of depreciation in case of a total loss. Depreciation is an unavoidable factor that affects the value of car over time. Also, one can recover the original value of their car, allowing them to make a similar purchase or pay off any outstanding loans related to the car.
- RTI coverage accelerates the process of replacing your vehicle in the unfortunate event of total loss or theft. Since you are compensated based on the original invoice price, you can quickly purchase a new car without having to dip into your savings or arrange for additional funds. This ensures minimal disruption to your daily life and allows you to regain mobility promptly.
Conclusion
Return to invoice (RTI) coverage is a valuable add-on feature in car insurance policies that exceptionally enhances the protection financially provided to car owners. It ensures that in the event of total loss or theft, you receive the original invoice price of your car, providing you with financial security and peace of mind. When considering car insurance options, carefully evaluate the benefits of RTI coverage to determine if it aligns with your needs and offers the desired level of protection.
