Return to Invoice Cover in Car Insurance: Meaning & Benefits Explained

Car insurance protects you financially from unexpected losses, but in some cases — especially when your car is stolen or completely damaged — even a comprehensive policy may not cover the full cost of your loss.

That’s where the Return to Invoice (RTI) Cover steps in. This powerful add-on cover bridges the gap between your car’s insured value and its original invoice price, ensuring you don’t lose a single rupee if the worst happens.

In this blog, we’ll break down the meaning, benefits, eligibility, claim process, and why every car owner should consider RTI cover in 2025.

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

The Return to Invoice (RTI) Cover is an add-on available with comprehensive car insurance policies. It allows you to claim the original invoice value of your car, including road tax and registration fees, in case your vehicle is stolen or totally damaged (total loss).

Normally, a standard policy compensates you based on the Insured Declared Value (IDV), which is your car’s current market value. However, due to depreciation, this value is usually lower than your car’s original price.

With RTI cover, you get back the entire invoice amount, ensuring you can replace your lost vehicle with a new one of the same model and variant.

Example of How Return to Invoice Works

Let’s say you bought a new car for ₹10 lakh two years ago.
Due to depreciation, the IDV may now be ₹7 lakh.

If your car is stolen or completely damaged:

• Without RTI cover → You get ₹7 lakh (market value)
• With RTI cover → You get ₹10 lakh (invoice value) + road tax + registration cost

That’s a difference of ₹3 lakh — a huge saving made possible by this single add-on.

When Can You Use RTI Cover?

You can use the Return to Invoice cover in the following situations:

1. Total Loss: When your car is damaged beyond repair in an accident.
2. Constructive Total Loss: When repair costs exceed 75% of the car’s IDV.
3. Theft: When your vehicle is stolen and not recovered by the authorities.

This cover ensures complete compensation for your loss — not just the depreciated market value.

Why Return to Invoice Cover Matters

Depreciation starts affecting your car’s value from the moment it leaves the showroom. Within just 2–3 years, your car’s resale or IDV value can fall by 20–40%.

Without RTI, your insurer pays only this reduced amount.
With RTI, you recover the full original price, making it a must-have add-on for new or high-value cars.

Benefits of Return to Invoice (RTI) Cover

Let’s look at the key benefits that make RTI cover a wise investment for every car owner:

1. Full Reimbursement on Total Loss or Theft

If your car is stolen or completely damaged, you get the invoice value, not the depreciated market value. This helps you buy the same car model again without extra financial burden.

2. Covers On-Road Costs

RTI cover reimburses not just the car’s price but also registration fees and road tax, which are usually 10–15% of the total cost — ensuring you recover your full investment.

3. Peace of Mind

You can drive without worrying about the financial loss from theft or total damage. The insurer covers the full cost, giving you complete peace of mind.

4. Ideal for New and Expensive Cars

RTI is particularly useful for new cars (up to 3–5 years old) and premium vehicles where the depreciation amount is significantly higher.

5. Affordable Premium Add-on

The cost of adding RTI cover is minimal compared to the benefits. Usually, it adds only 5–10% to your annual premium, but it can save lakhs in the event of a claim.

How to File a Return to Invoice Claim

The claim process for the RTI cover is straightforward:

1. Inform your insurer immediately after the theft or total damage.
2. File an FIR with the local police if the car is stolen.
3. Submit the required documents — car’s invoice, RC, FIR copy, and policy details.
4. The insurer verifies the claim and assesses the loss.
5. Claim settlement is done based on the original invoice value.

Once approved, the insurer reimburses the entire invoice price (including tax and registration) — giving you full compensation.

Eligibility & Validity of RTI Cover

• RTI cover is usually available for cars up to 3–5 years old.
• Some insurers limit it to first or second ownership only.
• The car must be insured under a comprehensive policy.
• Not available for commercial vehicles or cars older than 5 years.

Always check your insurer’s terms before opting for this add-on.

Difference Between IDV and RTI

Why You Should Add RTI Cover to Your Policy

In today’s environment, where car theft and accidents are unpredictable, the Return to Invoice cover ensures you never lose the value of your investment.

It’s particularly beneficial if:

• You own a new car or luxury vehicle
• You live in a theft-prone city
• You want complete financial security

For a small extra premium, RTI ensures your car insurance offers 100% protection — both for your car and your finances.

Conclusion

The Return to Invoice Cover is more than just an add-on — it’s a financial safeguard that ensures you receive the full value of your car if it’s stolen or irreparably damaged.

With minimal additional cost, it provides peace of mind, full reimbursement, and comprehensive protection for your vehicle investment.

So, when renewing or buying car insurance, make sure to include the RTI Add-on.
To compare and buy the best motor insurance policies with RTI cover, visit: SquareInsurance.in.

Frequently Asked Questions (FAQs)

1. What is Return to Invoice (RTI) Cover in car insurance?

Return to Invoice (RTI) Cover is an add-on that reimburses you the original invoice value of your car, including road tax and registration costs, in case your vehicle is stolen or totally damaged.

2. What does the Return to Invoice cover include?

RTI cover includes the car’s original price, registration charges, and road tax, ensuring you get full compensation instead of the depreciated market value.

3. When can I claim Return to Invoice cover?

You can claim RTI cover in case of total loss, constructive total loss, or theft of your insured vehicle.

4. Is Return to Invoice cover available for all cars?

No, RTI cover is generally available for new or relatively new cars (up to 3–5 years old) under a comprehensive insurance policy.

5. Is Return to Invoice cover worth buying?

Yes, RTI cover is a high-value add-on that protects you from heavy financial loss, especially for new or high-end cars, by covering the full invoice amount.