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• 11 Jun 2025

RTI in Motor Insurance: What It Is and Why You Absolutely Need It in 2025

When it comes to protecting your car, simply having a standard insurance policy might not be enough. That’s where the RTI add-on, or Return to Invoice, comes into play. This increasingly popular option in motor insurance ensures that in case your car is stolen or completely damaged, you recover the full invoice value — not the depreciated amount. In this blog, we’ll break down what RTI in motor insurance is, how it works, who should get it, and what makes it one of the smartest decisions for car owners in 2025.

What Is RTI in Motor Insurance?
RTI (Return to Invoice) is an optional add-on cover available with comprehensive car insurance policies. While standard insurance compensates based on IDV (Insured Declared Value) — a depreciated version of your car’s value — RTI allows you to claim the original purchase value of the car, including registration and road tax. This means if your car is declared a total loss or is stolen beyond recovery, you can get back the full invoice amount, not just a portion based on its current market value.

How Does RTI Cover Work?
Let’s say you purchased a new vehicle for ₹10 lakhs. After a year, due to depreciation, its IDV may reduce to ₹8.5 lakhs. If the car gets stolen or meets with a major accident, a standard policy will reimburse only the IDV. However, with RTI, your insurer will pay the entire ₹10 lakhs — covering the loss of depreciation and including road tax and registration fees. RTI essentially bridges the gap between the depreciated IDV and the original invoice value — making sure you're not at a financial loss even if the worst happens.

Top 5 Reasons to Choose RTI Cover
1. Covers Total Loss or Theft
RTI covers steps in when your car is stolen or damaged beyond repair. It ensures you’re not left under-compensated when your vehicle cannot be recovered or salvaged.

2. Covers the Gap Between IDV and Invoice Price
RTI pays out the difference between the current IDV and the original invoice price, which could be a huge amount, especially within the first few years of purchase.

3. Inclusion of Road Tax & Registration Charges
Unlike standard insurance, RTI includes road tax and registration fees in the reimbursement. This means you get 100% of your actual purchase cost back, not just the ex-showroom price.

4. Best Suited for New or High-End Cars
RTI is most beneficial for those owning brand new vehicles or luxury/high-value cars, where the depreciation in the first few years is steep and the financial risk of loss is higher.

5. Affordable Add-on for Complete Protection
Considering the peace of mind it offers, RTI is a cost-effective add-on, usually just 1–2% of your insurance premium, making it a small price to pay for full protection.

Things to Keep in Mind Before Opting for RTI
RTI is not applicable to everyone or every situation. Here are a few conditions to consider:

It is available only for cars under 3 years old

It does not cover minor or partial damage; only total loss or theft

You can opt for RTI only with a comprehensive car insurance policy, not third-party plans

Always read the terms carefully, as different insurers may have specific clauses.

Who Should Definitely Consider RTI in 2025?
While RTI can benefit most vehicle owners, it's particularly useful for:

First-time car buyers, who want to protect their hard-earned investment

Owners of new or luxury vehicles

Residents of urban areas where theft rates are higher

People who finance their vehicles, where loan EMIs continue even if the car is totaled

If any of these apply to you, RTI is not just helpful — it's essential.

How to Claim RTI Cover (Step-by-Step)
If you ever find yourself in a situation where you need to claim RTI, here's what to do:

File an FIR in case of theft or total loss.

Inform your insurer immediately with the details of the incident.

Submit all documents, including the original invoice, FIR copy, and registration certificate (RC).

The insurer will assess the claim, calculate the difference between the IDV and invoice value, and reimburse you accordingly.

RTI claims are usually hassle-free, especially if you have a reliable broker supporting you.

Conclusion
RTI in motor insurance is more than just another insurance add-on — it's a smart safeguard against financial loss. In a world where car theft and accidents are unpredictable, RTI helps you recover your full investment, not just a depreciated value. Whether you’ve just bought a new vehicle or plan to upgrade soon, adding RTI to your comprehensive insurance ensures that you're fully covered from day one.

Making an informed choice today could save you lakhs tomorrow. Contact us today or Visit https://basketoption.insure/ ,the leading insurance brokers in Bangalore, for expert guidance and the most competitive quotes on RTI and other car insurance add-ons.