Return To Invoice Bike Insurance Add-On Cover In Detail

Purchasing a bike is a huge investment. But, owning a bike also entails many risks such as road accidents, theft and damage beyond repair. The expenses incurred to repair such damages caused to your bike is atrocious. If you want to avoid these expensive costs, investing in bike insurance is your best remedy. However, it is very important to pick an insurance plan that offers you the required coverage. While a comprehensive bike insurance policy can settle your claim amount based on the IDV in case of extensive damage, the amount you receive will be lesser than the price at which you purchased your bike. Read this article to find out how adding a return to invoice insurance cover can help you to receive the complete price of the bike as your settlement.

What Is A Return To Invoice Insurance Cover? 

A return to invoice insurance cover is a facility that is offered when you purchase a comprehensive insurance plan or standalone own-damage bike insurance. A comprehensive insurance plan provides you financial assistance to compensate for the third-party losses as well as repair costs incurred to repair the damages sustained by your bike as a result of events other than collision.

In case the insured bike was involved in an accident that has resulted in a constructive total loss (greater than 70%) or when it is involved in theft, the insurance company will pay the policyholder the amount equal to the Insured Declared Value of the bike. The IDV is nothing but the current value of the bike in the market. It is calculated by subtracting the value of depreciation from the total selling price of the bike. Thus, the IDV is less than the selling price of your bike. This implies that you will undergo a loss of the amount equal to the cost of depreciation even if you claim insurance. This is because the actual price that you purchased your bike is inclusive of the registration charges as well as road tax charges. 

The best way to protect yourself from this loss is to purchase a return to invoice insurance cover. This cover helps you to bridge the monetary gap between the IDV and the invoice price. This is a bike insurance cover that will help you by providing you with the claim amount that is equal to your invoice price and not the IDV of your bike. With this additional cover added to your standard comprehensive insurance or standalone own-damage bike insurance plan, you can receive a full claim amount and avoid financial loss. 

Advantages of Return To Invoice Bike Insurance 

The following are the advantages of purchasing a return to invoice bike insurance cover -

1. The return to invoice bike insurance cover is beneficial for new bikes. This is mainly because it offers the owner reassurance that there won’t be any financial loss in case their bike gets stolen or involved in any accidents resulting in extensive damage.

2. Like most of the other bike insurance covers, the return to invoice cover is also available with the comprehensive bike insurance policy and standalone own damage bike insurance plans. 

3. The policyholder will receive a complete claim amount that is equal to the price at which he/she purchased the bike. Thus, adding this cover eliminates any potential financial loss. 

You may also like to read:- Tips To Keep Your Hand Stress Free While Riding A Bike

Drawbacks of The Return To Invoice Insurance Cover 

The following are the drawbacks of purchasing a return to invoice insurance cover -

1. The additional cover costs around 10% more than the standard comprehensive and standalone own-damage policy. 

2. Most insurance companies limit the number of times you can file a bike insurance claim under this cover. 

3. This cover is also applicable only to newly purchased bikes. 

4. You can’t file an insurance claim under this cover for minor damages. It is only applicable if your bike sustains damages beyond repair (more than 70%). 

Also read:

5 Must-Have Skills For Motorcycle Riders

Take Away

Having a bike insurance policy is imperative. With the rise in the number of vehicles on the road, accidents have become unpredictable. Thus, it is always wise to invest in an insurance policy that offers you the required coverage at an affordable premium.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.