Reasons Why You Should Purchase the RTI Cover for Your Vehicle

Posted on: Mar 19, 2024 | 3 mins | Written by: HDFC ERGO Team

Reasons Why You Should Purchase the RTI Cover for Your Vehicle

You must have the right car insurance in a world where natural disasters like earthquakes and floods can wreak havoc. Comprehensive and third party insurance offer protection, but one add-on cover stands out for its benefits. It is the Return to Invoice (RTI) cover. Let's dive deeper and see what it is and why it is essential for you.

Understanding Car Insurance

Car insurance is mandatory in India, as it helps car owners stay protected against financial losses that might result from damages, theft, or accidents. Primarily, there are two kinds of car insurance policies.

These are:

1. Third party car insurance:

This insurance helps provide coverage for injuries or damages caused to third parties. It includes other vehicles and pedestrians. It is mandatory to have third party car insurance in India.

2. Comprehensive car insurance:

Comprehensive car insurance offers broader coverage, including protection against damages caused to your car because of vandalism, theft, natural disasters, and accidents. It includes third party liability coverage.

NCB in Car Insurance

NCB in car insurance is a discount that insurance companies offer to policyholders who have yet to make a single claim during their policy period. It is a reward for driving safely and responsibly. The no-claim bonus (NCB) increases with each claim-free year, resulting in lower premiums upon policy renewal.

RTI in Car Insurance

RTI in car insurance is valuable for your car insurance policy. It is a valuable add-on that offers peace of mind and enhanced protection in the face of unforeseen circumstances. RTI ensures that you get the original invoice price of your car from your insurance provider when there is theft or total loss. It acts as a financial safety net that bridges the gap between the IDV and its original price.

Comprehensive car insurance policies reimburse you based on the depreciated IDV, and RTI cover ensures that you are compensated for your investment's full value.

RTI cover is useful when there is a total loss of your car because of natural disasters, theft, or accidents. It helps provide financial support to purchase or replace a car. It is essential when the IDV is less than the vehicle's actual cost.

Benefits of RTI Cover

RTI in car insurance means protection against financial setbacks when the times are tough. Natural disasters like storms, earthquakes, and floods can irreparably damage vehicles. This cover ensures you get the original invoice price of your vehicle. It helps you move forward without bearing the unexpected expense burden.

The RTI cover also offers financial stability and peace of mind, knowing your investment is totally protected against unforeseen circumstances. The RTI cover eliminates financial loss worries as it provides comprehensive car insurance coverage. It helps you navigate through challenging times with confidence.

RTI Cover Importance

Comprehensive insurance provides extensive coverage but might only partially protect your investment when there is a theft or total loss. RTI becomes valuable here. Let's see a few reasons why it is essential for you:

Protection in the event of total loss: Return to invoice ensures you get the original invoice price of your vehicle in case there is a total loss of your vehicle. You can recover the full value of your car, including road taxes and registration fees.

Bridge the gap between invoice price and IDV: The maximum amount an insurance company pays in the event of theft or total loss is called the insured declared value or IDV. However, the IDV depreciates with time on factors like market value, usage, and age. Here is when RTI bridges the gap between the original price and depreciated IDV by ensuring you don't suffer financially.

Financial security in case of natural disasters: Your vehicle can become irreparable in the event of a natural disaster like a storm, flood, or earthquake. Return to invoice cover provides a safety net as it reimburses the entire invoice amount. It helps you replace or purchase a new vehicle without being financially burdened.

Financial stability and peace of mind: RTI add-on cover ensures that car owners have peace of mind knowing their investment is fully protected against unforeseen circumstances. It provides financial stability during challenging times and eliminates the worry of financial loss in case of total loss or theft.

Conclusion

In conclusion, investing in RTI add-on cover is a prudent decision for every car owner seeking comprehensive protection for their vehicle. While third-party and comprehensive car insurance policies offer essential coverage, RTI coverage ensures that you are adequately compensated in the event of a total loss or theft. By bridging the gap between the insured declared value and invoice price, RTI cover provides financial security and peace of mind, especially during natural disasters and unforeseen emergencies. Don't wait until it's too late – protect your car and your investment with RTI add-on cover today.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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