What is RTI Gap Insurance?
Return to invoice gap insurance or RTI for short, is rapidly becoming the most popular and versatile gap insurance policy. Also known as Back to Invoice Gap Insurance and Return to Value Gap Insurance, return to invoice insurance covers the difference between the motor insurance settlement amount and the original invoice price of the car. Most return to invoice policies are available for cars purchased both new and used using a variety of funding methods including cash, hire purchase finance and bank loans amongst others. You can also purchase return to invoice insurance for vehicles on contract hire or lease agreements.
How Return to Invoice Gap Insurance Works
Return to invoice insurance cover the difference between the motor insurance valuation and the original invoice price.
Here’s an example of RTI Gap Insurance
Let’s take a look at a common and typical scenario….
| Mr Jones buys a vehicle for an agreed inclusive price of: | £15,000 |
| He pays a deposit of: | £1,000 |
| He then pays the remaining balance to the dealer on collection of: | £14,000 |
| Sadly, 2 years later Mr Jones’s car is stolen and written off by his insurer. | |
| After some debate, Mr Jones’s insurance company offer a final settlement of: | £7,500 |
| This leaves Mr Jones out-of-pocket by: | £7,500 |
| With a RTI Gap Insurance policy Mr Jones would receive the difference between the insurance
company valuation and the original purchase price: |
£7,500 |
Take advantage of our monthly price comparison data and save time and money by comparing rti gap insurance quotes from all the online gap insurance providers.
Other Types of Gap Insurance
There are other types of gap insurance available that provide different levels of cover.
If you purchased your vehicle using some form of finance you may want to consider Finance Gap Insurance. This type of gap insurance covers the difference between the outstanding finance balance (settlement amount) and the insurance valuation (offer). Finance Gap is particularly beneficial if you have borrowed a significant proportion of the vehicle purchase price as you could be in negative equity during the early years of ownership.
Click here to find out more about Finance Gap Insurance.
If you are looking for the maximum amount of cover possible a Vehicle Replacement Insurance policy will provide cover for the difference between the insurance company valuation and the cost of a new vehicle replacement. In some cases, an actual replacement vehicle will be provided on a new- for- old basis.
Click here to find out more about Vehicle Replacement Gap Insurance.
You can also check out our more detailed gap insurance product review fact sheets for the online gap insurance providers we recommend.
Click here to find out more information about Click4Gap
Click here to find out more information about Ala.co.uk
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