When you buy car insurance, you will get the option of adding certain covers to your car insurance plan. One such cover is the return to invoice cover. In this blog, we will show you what this cover offers you and why you may want to consider opting in for it.Return to invoice cover meaning
The return to invoice cover is a rider that allows you to claim the actual purchase price of your car from the insurer in case you face total loss of the vehicle. This cover can be claimed if your car gets stolen or if it has been damaged beyond repair in an accident or calamity.
Without the return to invoice cover, you can only claim the IDV (insured declared value) of your car as stated in the car insurance policy document. Note that the IDV does not equal the purchase price of your vehicle and will exclude the road tax as well. Plus, the IDV takes into consideration the depreciation faced by your vehicle as it stays at par with the current market value of the insured car.
Thus, by opting for the return to invoice cover, you can actually get a better sum insured in case of an accident or calamity. This amount can, perhaps, really help compensate you for losses and allow you to comfortably purchase a new vehicle as well.
The return to invoice cover can especially prove to be beneficial if you live in an area that is known to have a high rate of car theft cases. This way, you won’t have to worry about suffering significant financial loss if your vehicle gets stolen. While the emotional loss of losing your car can be hard to bear, your insurer can help you shoulder the financial burden at least.Things to keep in mind when buying the return to invoice cover
If you are planning to opt in for the return to invoice cover, here are a few things you need to keep in mind.
- You need to lodge an FIR to make a valid claim under this cover
- The cover cannot be claimed for small damages which can be easily fixed
- The cover will increase your car insurance premium
- The cover can only be purchased with a comprehensive car insurance policy
You may wonder if you need to purchase the return to invoice rider along with your car insurance plan. Experts advise all new car owners to opt in for this useful rider. Insurers only offer the return to invoice cover up to a certain number of years with a car insurance plan. Generally, older cars do not qualify for coverage.
For more details on the return to invoice cover in car insurance, do reach out to your insurance provider or agent. We hope this has been a good read for you today. Remember to always follow the road rules and drive safely.Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.