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What is RTI (Return to Invoice) GAP insurance?

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Many of us have heard about the Return to Invoice (RTI) Gap Insurance. It is generally offered to the customers by their respective motor dealers. It is also easier for anyone to understand this type of motor insurance.

In RTI Gap Insurance, the customer pays a stipulated amount for his/her vehicle and this amount is shown on the invoice. When this vehicle is “written off”, then RTI Gap Insurance “'tops up' your motor insurers market value settlement for you, back to the original invoice price you paid.” (

What are the benefits of Return to Invoice Gap Insurance?

The main function of RTI Gap Insurance is to return the customers the “original invoice price” that they had paid.

However, if the original invoice price is higher than the finance settlement price, then after settling the finance, the customer can have a good amount as a leftover deposit for buying another vehicle.

What if the original invoice price is lower than the finance settlement price? This can happen only when a small amount is paid as the deposit into the finance agreement and the automobile is “written off” in the 1st part of that agreement.

There are several cover companies that help you with the RTI Gap Insurance. That is, these companies will pay the figure of the financial settlement, even when that figure is greater than the original invoice price.

There are other aspects also that one should keep in one’s mind.

● The claim limit of the insurance policy

● The claim limit should be sufficient to include the depreciation over “the period of cover” that is required by the customer.

It is obvious that the longer a vehicle is possessed, it is more likely for the vehicle to lose its value. In such cases, the claim limit should be higher.

Also, the duration of the cover is another important aspect. The automobile dealer normally offers a 3-year cover. So, many customers have this assumption that the RTI Gap Insurance will also be valid for that time period only. Nonetheless, the customers should opt for those automobile dealers that provide an RTI Gap Insurance of 5 years. Also, the customers are provided with a cover that is transferable. The cover can also be deferred if the customer has a replacement cover on his/her insurance (motor) policy.

Return to Invoice or RTI policy should be availed by all those vehicle owners whose vehicles are older than 3 years. This is because the policies of Nil Depreciation are applicable only till the third renewal for the new vehicles. When a claim is made, the Nil Depreciation policies do not calculate the depreciation on the costs of rubber parts, components made of fiberglass etc. by asking for an extra premium.

The difference of premium between the Return to Invoice and Comprehensive policies is approximately 30% to 40% (more of the former). The premium of the former, however, is dependent on the model, make and use.

Next time when you visit your insurer for renewing the motor policy, inquire whether there is an option of RTI Gap Insurance Policy.

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