Car thieves are always on the lookout for an opportunity, and once they find it, they steal your vehicle and disappear. This leads to significant financial loss and inconvenience for you. When you buy a car from a showroom, various additional costs increase its on-road price by several lakhs. However, if your car gets stolen, the insurance company only provides the Insured Declared Value (IDV), which is usually much lower than the on-road price.
But don’t worry! There is a way to ensure that you get the full on-road price if your car is stolen. Let’s find out how!
Buy a Return to Invoice (RTI) Policy
Whether your car is stolen or catches fire, having a Return to Invoice (RTI) Policy ensures that you receive its full on-road price. This special insurance add-on can save you lakhs of rupees in case of a total loss.
Also Read- Top 5 Safest Cars: Best 5 Cars Under 10 Lakh with Bharat NCAP Certification
What is Return to Invoice (RTI)?
RTI is an insurance policy that provides compensation equal to the on-road price of your car instead of just the IDV. If your car is stolen or completely damaged due to a fire, the insurance company reimburses you with the full amount you originally paid, including RTO charges, insurance costs, and other expenses.
However, before purchasing any insurance policy, make sure to read and understand its terms and conditions. If you have an RTI policy and your stolen car is not recovered within 180 days, the insurer declares it a total loss and pays you the full claim amount.
Government vs Private Insurance Companies
- Government insurance companies usually compensate based on the ex-showroom price.
- Private insurance companies include RTO charges, insurance premiums, and other additional costs in their coverage, ensuring you get the complete on-road price.
When Can You Buy an RTI Policy?
You can purchase an RTI policy within three years of buying your car. Some insurance providers even offer this add-on for up to five years.
By opting for an RTI policy, you can drive worry-free, knowing that even in the worst-case scenario, you’ll recover your car’s full value.