Return To Invoice Vs Zero Depreciation

Car insurance is a contract between the insurance company and the policyholder that protects the insured if they suffer a financial loss due to an accident or theft. You can get coverage for third-party liability or opt for comprehensive coverage. With comprehensive cover, you can also opt for additional covers like 24x7 Roadside Assistance, Pay As You Consume, Zero Depreciation, Return to Invoice, Engine Protector, No Claim Bonus Protector, etc.

This guide will help you understand the difference between the two covers: Return to Invoice (RTI) Cover and Zero Depreciation Cover. It will enable you to choose the most suitable cover for your individual needs. With Bajaj General Motor Insurance, you can stay safe and ride peacefully.

Return to Invoice (RTI) Cover

Imagine you bought a brand new car and, sadly, within two years, it gets stolen or is damaged beyond repair. Normally, your insurance company will pay you the current market value of the vehicle, which will be less than the price you paid when you purchased the car due to depreciation.

But if you have an add-on like Return to Invoice cover, the insurance company will give you the full amount you had originally paid for the car. So this cover puts you back in the same place financially as when you first bought the car. This cover makes sure you do not suffer loss if your new car is stolen or completely damaged. Let us understand with the help of an example:

Suppose you bought a car for ₹12 lakhs. After 2 years, the market value of the car is around ₹9.6 lakhs due to depreciation. Without an RTI cover, your insurance company will pay you only ₹9.6 lakhs. But if you have an RTI cover, you will be paid the full invoice value.

Features and Benefits of RTI Cover:

1. Covers total loss or theft: If your car is stolen or damaged beyond repair, you will be paid the actual invoice value and not the Insured Declared Value.
2. Best for new cars: If you have recently bought a new car, this cover will ensure your peace of mind.
3. Financial relief: You do not have to arrange funds to get a new car as RTI will pay you for the loss.
4. Helps replace your car easily: You can buy your same favourite model again as you get the full invoice value.

Zero Depreciation Cover

Suppose your car suffers damage due to an accident and you make a claim for the damages. Usually, your insurance company will deduct an amount for depreciation as car parts lose value over time. So, you won’t be paid the full cost of replacement.

But with a zero depreciation cover, the insurer will not deduct on account of depreciation and you will get the full cost of replacement of parts or repairs. So, if your bumper, headlights, or door get damaged, you don’t have to spend much from your pocket as your insurance company will cover almost everything. An example will help you understand this concept better.

Suppose your car’s bumper is damaged due to an accident and the cost of replacing the bumper is ₹30,000. Assume depreciation is around ₹7,000. Without zero depreciation cover, the insurer will deduct depreciation and pay you only ₹23,000. But if you opt for this cover, you will be paid the full amount.

Features and Benefits

1. No deduction for depreciation: You get the full claim amount for replaced parts and not the reduced depreciated value.
2. Extra peace of mind: Since insurance will handle the costs, you need not worry about minor dents.
3. Covers most parts: Parts made up of plastic, rubber, fibre, and metal parts which depreciate fast, are also covered.
4. Saves money in the long run: This cover is especially useful if you drive in crowded cities where minor scratches and dents are common.

Also Read: What is the Benefit Of Zero Depreciation Car Insurance?

The Difference Between Return to Invoice (RTI) Cover and Zero Depreciation Cover

Return to Invoice (RTI) Cover vs. Zero Depreciation Cover: Which Is the Right Choice?

Both RTI and Zero Depreciation are useful, but they cover different risks. If your car is brand new or expensive, RTI is useful because it gives you the full invoice value if it’s stolen or totally damaged. On the other hand, if you drive a lot in the city and often worry about scratches, dents, or small accidents, Zero Depreciation is perfect since it saves you from paying out of pocket for repairs.

However, the best combination is having both together in the first few years of owning your car, so that you are covered for small damages and the worst-case scenario. So the question is which one to choose:

• If your car is brand new or expensive, RTI is a must.
• If you live in a busy city where scratches are common, Zero Depreciation is essential.

And if your car is less than 3–5 years old, the smartest move is to get both together. That way, you’re protected against the small repair bills and the scenario of total loss or theft.

In short: Zero Dep is everyday protection and RTI is the ultimate backup plan. Having both is like playing it safe from all sides.

Also Read: What is Third-Party Insurance Cover and How it Works?

Why Buy These Add-Ons From Bajaj General Insurance?

Buying these add-ons from a trusted insurer like Bajaj General Insurance ensures the claim process is smooth. Our comprehensive coverage ensures you get full protection for your vehicle. In case of accidents, you can get your car repaired at any of our 7,200+ cashless garages. Also, we provide 24/7 assistance, so even if you get affected at midnight, you are not alone.

Conclusion

Both Return to Invoice (RTI) and Zero Depreciation are valuable add-ons, but they serve different purposes. RTI helps you in case of total loss or theft by paying the full invoice value of your car. Zero Depreciation protects you from repair costs by covering the full replacement value of parts without considering depreciation.

If your car is new or costly, RTI gives you strong financial protection. If you often drive in busy city traffic, Zero Depreciation saves you from frequent repair expenses. The best option in the first few years of your car is to have both together, so you are covered for both small damages and major losses. Visit Bajaj General Insurance Motor Insurance today for insuring your car so that you can drive confidently. Get car insurance, third-party online or comprehensive car insurance for peace of mind.

FAQs

Is bumper-to-bumper the same as zero depreciation cover?

Yes, zero depreciation cover or bumper to bumper insurance or nil depreciation insurance is an additional cover that protects the car’s depreciation value.

Are these add-ons available with third-party car insurance?

No. You must have comprehensive cover to opt for Zero Depreciation or RTI.

Which is better, RTI or IDV?

These two are different concepts. IDV or Insured Declared Value is the current market value of your car. RTI is an add-on cover and does not replace IDV.

What happens if the IDV of my car is low?

If your IDV is low, it will reduce your premium, but it will also lead to fewer benefits.

What is covered under zero depreciation insurance?

Zero depreciation insurance covers plastic, rubber, fibre, and metal parts, but does not include consumables like oil and tyres.

*Standard T&C apply

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***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

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