Definition
Return to Invoice
Return to Invoice is a motor add-on that pays the original invoice value of the vehicle, rather than the depreciated IDV, on total loss or theft.
In a standard total-loss settlement, the owner receives only the depreciated IDV, which can be well below what they paid, especially for a near-new car. The Return to Invoice (RTI) add-on bridges this gap, reimbursing the on-road or invoice price including registration and taxes, subject to the policy terms.
RTI is most valuable in the first few years of ownership when depreciation is steepest, and is usually available only for relatively new vehicles. It pairs naturally with zero-depreciation cover to maximise protection for new car buyers.
Related terms
- Insured Declared Value (IDV)Insured Declared Value is the current market value of a vehicle fixed at policy inception, representing the maximum the insurer will pay on theft or total loss.
- Total LossTotal loss in motor insurance is when a vehicle is stolen or damaged beyond economical repair, triggering settlement at the Insured Declared Value.
- Add-On CoverAn add-on (or rider) cover is an optional enhancement bought with a base policy to widen protection for an extra premium.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.