Updated on - 09 Feb 2026
Invoice price cover or Return to Invoice (RTI) is an add-on feature in comprehensive car insurance policies. This rider is particularly useful in total loss situations, such as theft or accidents leading to irreparable vehicle damage. It compensates you for your car’s original invoice value, including registration charges and road tax, instead of the depreciated market value that policyholders get in usual cases without this rider. Invoice price cover thus bridges the gap between the depreciated market price and the original purchase cost.
Learn how RTI cover secures your car's full invoice value, offering financial safety.
Benefits of the invoice price cover in car insurance
The invoice price cover rider in a car insurance policy offers several benefits to the policyholder, including:
- Full financial protection: RTI cover guarantees that you receive compensation equivalent to the original invoice value of your car when you purchased it. This means you won’t face a financial loss in case of theft or severe damage.
- Ideal for new cars: It’s especially useful for new car owners as it shields against rapid depreciation. Unlike standard policies that factor in depreciation (Insured Declared Value or IDV), RTI cover ensures you receive the total amount you paid.
- Peace of mind: With RTI cover, you can enjoy peace of mind, knowing your investment remains safeguarded. You won’t bear a substantial financial burden if your car gets stolen or is involved in a severe accident.
- Higher compensation: RTI cover offers higher compensation compared to regular insurance policies. This makes it an excellent choice for protecting your vehicle’s original value.
- Protection in theft-prone areas: If you live in an area with a high risk of car theft, RTI cover provides essential protection, ensuring you receive the entire invoiced amount if your car gets stolen.
- Provides financial protection to financed vehicles: RTI cover is highly beneficial for financed or leased cars, as it helps cover any outstanding loan amount in case of total loss.
How the invoice price cover differs from standard car insurance
When choosing a car insurance policy, it is important to understand how different add-ons can affect your coverage. So let us first explore the difference between standard insurance and RTI:
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Feature
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Standard Car Insurance
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Insurance Price Cover (RTI)
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Coverage
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Pay the depreciated market value (IDV) in total loss situations.
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Pays the full original invoice value, including registration charges, road tax and applicable taxes.
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When is it needed?
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It is the default coverage for most cars, protecting against accidents, thefts or fire.
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Covers total loss and theft.
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Compensation
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Determined by IDV which decreases over time (every year).
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Covers original cost by bridging the gap between IDV and original invoice value.
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How to avail?
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Included in most comprehensive policies.
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Optional add-on
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Situations where invoice price cover is beneficial
Having an invoice price cover is most beneficial in the following situations:
- Total loss, means the car is damaged beyond repair, from accidents and natural disasters like floods, earthquakes and landslides;.
- If the car is stolen and cannot be recovered.
- Total loss from fire or explosion.
- When car depreciation in the first few years is significant.
Components of a car’s invoice price you should know
A car’s invoice price includes the ex-showroom price, registration charges, road tax, insurance costs and any other applicable handling or logistics fees. It may also include the cost of optional accessories that are specifically insured and charges paid at the time of purchase.
How invoice price cover helps in total loss claims
RTI cover ensures full financial protection in a total loss situation. But how does it really work? Let’s imagine you buy a car for INR 13 lakhs, including INR 1.80 lakhs in road tax, registration and insurance charges. Now your car is completely damaged in an accident. With RTI cover, the insurer reimbursed the full INR 14.80 lakhs, ensuring your original investment in the car is fully protected.
Impact of depreciation on car insurance payouts
Every car starts losing value the moment it is driven. This decrease in value is referred to as depreciation. Standard insurance policies settle claims based on the insured's declared value (IDV). This decreases as your car ages. It affects how much you receive from your insurance company in the event of a claim. The older or damaged the car, the lower the payout you receive in a claim. This depreciation directly lowers the payouts, which means the insurer will pay less than what you originally spent on the car.
Who should opt for invoice price cover?
Invoice price cover is most suitable for cars within the first 3-5 years of purchase. If you have a new car, vehicles that depreciate in value, luxury or high value cars, financed or leased cars or live in a highly theft or accident-prone area, this rider will be beneficial.
Cost vs benefits: Is the invoice price cover worth it?
RTI requires an additional premium over standard comprehensive car insurance, which varies based on the car’s make and model. This cost is generally higher for new and high-value vehicles. It adds to your annual insurance expenses, but it can provide significant financial protection in case of theft and complete irreparable damage. This add-on ensures you are paid the entire invoice amount at the time of buying the car, making the extra premium worthwhile for protecting your overall investment.
How to add invoice price cover to your policy?
Invoice price cover cannot be added to third-party insurance policies; it only works with a comprehensive car insurance policy. You can opt for it at the time of purchase or when you are renewing your policy by paying an additional premium. Always check that registration charges, road tax and other costs are included. You should also remember to renew the cover each year along with your comprehensive policy.
Common misconceptions about invoice price cover
There are several misconceptions about invoice price cover that can lead to confusion about its benefits. These are:
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Myth
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Fact
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RTI covers all types of damages
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It only applies in total loss or theft situations, not for minor or repairable damage
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It is included in the basic policy
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It is an add-on and must be purchased separately by paying an extra premium
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It applies to older cars and any policy
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It is generally available only for new or relatively new vehicles, usually up to 3-5 years and cannot be added to third-party policies
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It provides a higher payout than the car’s actual value
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It only reimburses the full amount paid at the time of purchase and does not exceed the invoice value
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Tips to maximise your car insurance protection
Taking steps to maximise car insurance protection can shield you from financial loss. Here are some tips for you:
- Opt for comprehensive coverage: Make sure your coverage covers both third-party liability and own damage circumstances. Add applicable add-ons, such as invoice price cover based on your vehicle's age and value.
- Keep vehicle details updated: Report modifications and addition of accessories to the insurer to avoid claim rejections.
- Maintain a clean history: Avoid frequent minor claims as they can increase premiums or impact renewals.
- Review the policy annually: Check coverage, IDV and add-ons during renewal to ensure adequate protection against depreciation and total loss.
- Choose an insurer-approved garage: Repairs from approved service centres reduce paperwork and speed up claim settlement.
- File timely claims with documentation: Submit all necessary documents, FIRs if applicable and other documents required without any delays.
Conclusion
Protecting your car goes beyond basic insurance; it is also about safeguarding your original investment. Invoice price cover ensures you receive the original amount paid, covering road tax, registrations and other costs, especially in total loss or theft situations. When you buy car insurance online for new, high-value cars or financed vehicles, opting for this add-on gives you the peace of mind and prevents unexpected financial burdens.
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FAQs
1. Does RTI cover factory-fitted accessories?
Invoice price cover reimburses factory-fitted accessories only if mentioned in the original purchase invoice.
2. Is invoice price cover applicable to used cars?
This cover is usually available only for new cars or relatively new cars, typically 3-5 years old.
3. Can RTI cover be transferred if I sell my car?
Invoice price cover is linked to the insured vehicle and cannot be transferred to a new owner.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.