- October 3, 2018
- By concord
- In Blog
- Tags auto warranty
Have you ever bought an auto warranty? Have you heard RTI cover and wonder what it’s all about? Here we will tell you more about this novel type of car insurance -Return to Invoice Cover. What it is exactly? How it will benefit you? It is an insurance cover which can get you your stolen or completely damaged car back. But, in a different manner. What it is?
Before going into the details of the RTI cover, you should know why it is different from the conventional comprehensive insurance policy. Also, there is the concept of Insured Declared Value (IDV). Both of these (IDV, and Depreciation), reduce the amount of compensation available to the insured. The RTI Cover helps to overcome the shortcomings caused by these factors in providing the right insurance cover to the clients.
How Return to Invoice Cover Works?
In the normal circumstances, depreciation plays a major part in deciding the IDV as it sees a steady decline in the insured amount on a yearly basis when you renew your car insurance. Usually, depreciation is around 10% annual of the amount. Hence, it means that you’ll not get anything in case of total loss. Basically, the Total Loss comes into effect when the cost of repairs is more than the IDV. It also applies in case of theft of the vehicle, but, in the normal comprehensive insurance cover, the IDV is the only maximum amount of claim. But, in RTI Cover, the insurance company would pay you the invoice value of the car.
You need not face any situation, terms, and conditions or loss of any depreciation or IDV given in auto warranty. Hence, RTI cover ensures that the insurance company pays you the original invoice value of your vehicle, so, you get total compensation. Now, make a wise choice for getting the right cover for any damage to your vehicle, and don’t repent where the fault is not yours.