As a new car owner, you might have experienced that all too familiar feeling of being scared to take your vehicle out for a drive. And, your fears are completely justified. No matter how careful you are, the unpredictability of the road can turn things awry. Theft and vandalism too might have you worried about the possible damages that you could face should your car be the target of a miscreant.
Now, even if you already have a comprehensive car insurance policy in place, this coverage will only compensate you up to a certain extent. The compensation usually stops at the IDV which is the insured declared value of your car. And, the IDV takes into account depreciation and does not include other expenses that you paid to own your car, such as road tax. Thus, if your car gets stolen or damaged beyond repair, the IDV won’t equal the real losses you have faced.
So, is there a way to receive complete coverage? Yes, you can if you opt in for the ‘return-to-invoice’ add-on. Read on to learn more about this extremely helpful rider on your car insurance policy.
What is the return-to-invoice cover?
The return-to-invoice cover is an add-on that will ensure you get compensated for the full invoice amount of your car if your vehicle gets stolen or damaged beyond repair. In essence, this cover bridges the gap left by the compensation you would otherwise receive from your IDV.
The return-to-invoice cover is not one that you can claim for minor dents and scratches sustained by your vehicle. It comes into play when your vehicle suffers from total loss. For instance, if your car has been stolen, you would be able to claim the benefits of this add-on on your car insurance policy. Or, if your car faces complete damage from a landslide or an earthquake, the return-to-invoice add-on cover will compensate you for the losses you have thus suffered.
Who is the return-to-invoice add-on suitable for?
While almost anyone who owns a new car can benefit from this add-on, it is absolutely essential for those who live in areas that are prone to thefts or places that are known to face natural calamities like earthquakes and floods.
Are there any limitations to thereturn-to-invoice cover?
Yes, there are certain limitations to the return-to-invoice cover that are general among all insurance providers. These include the following conditions:
- This add-on can only be purchased for vehicles that are under 3 years old
- The benefits of this add-on cannot be claimed for any wear and tear that occurs naturally as the vehicle ages
- This cover may not be offered to imported cars
It is advisable that you contact your insurance provider for a full list of the exclusions that may accompany their return-to-invoice add-on.
Thus, we see how beneficial the return-to-invoice add-on can prove to be. Do make sure to talk to your car insurance provider about this rider as soon as you can. Finally ensure that you always renew your car insurance policy on time to stay financially secure and legally compliant. Drive safe and take care!