What is the difference between Depreciation and Return to Invoice cover?

When buying a car insurance coverage in India, you may come across two important add-on covers: Depreciation cover and Return to Invoice (RTI) cover. While both covers provide additional protection for your car, they serve different purposes. In this article, let’s explore the difference between Depreciation cover and Return to Invoice cover.

What is Depreciation cover?

Depreciation cover is an add-on cover that can be purchased along with your comprehensive car insurance. This add-on cover ensures that the full cost of replacing damaged car parts is reimbursed with new ones during a claim settlement.

How does Depreciation cover work?

When you purchase a Depreciation cover, you’ll need to pay an additional premium. With Depreciation cover, the entire cost of replacing damaged parts with new ones will be covered, regardless of their depreciation value. This means you will receive a higher claim settlement amount. However, it’s important to note that Depreciation cover usually comes with a slightly higher premium than a standard policy.

What is Return to Invoice cover?

Return to Invoice cover refers to a specific type of add-on cover that ensures the policyholder will receive the original invoice price of their car if it is stolen or deemed a total loss in an accident. This add-on cover that can be purchased along with your comprehensive car insurance policy.

How does Return to Invoice cover work?

When you purchase an RTI cover, you’ll need to provide the invoice value of your vehicle, including taxes and registration charges. In the event of a total loss or theft of your vehicle, your insurer will pay the invoice value of the vehicle.

Key differences between Depreciation Cover and Return to Invoice cover

Here are the key differences between Depreciation cover and Return to Invoice cover:

Benefits of Depreciation cover and Return to Invoice cover

Here are the benefits of purchasing Depreciation cover and Return to Invoice cover:

Financial protection: Both covers provide financial protection against damages or losses to your vehicle.

Increased claim amount: Both covers can increase the claim amount you receive in the event of damages or losses to your vehicle.

Peace of mind: Both covers can provide peace of mind, knowing that you’re protected against unexpected events.

To wrap up

In conclusion, Depreciation cover and Return to Invoice cover are two important add-on covers that can provide additional protection for your car while driving on the road. While both covers serve different purposes, they can provide financial protection, increased claim amounts and peace of mind. By understanding the difference between Depreciation cover and Return to Invoice cover, you can make the right decision while purchasing a car insurance policy in India.

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