What is the Difference Between Return to Invoice and Zero Depreciation Rider in Car Insurance?


When you own a car of your own, you get the comfort of travelling anywhere you want without any worries. However, to travel anywhere without major issues, your car must be in good condition and protected from unprecedented dangers.

One of the most optimal ways to protect your car is by getting a suitable car insurance policy for the vehicle. With four-wheeler insurance, you get to protect your prized possession from unexpected issues like natural disasters, thefts, accidents, etc. In addition, a car insurance plan will provide you with the financial support for dealing with the damage repair costs.

Purchasing car insurance has become quite easy these days. Insurers like Tata AIG have launched their official website to help customers. You can visit your preferred insurer’s website, use the car insurance calculator to get a quote for the car insurance and purchase the plan. This way, you can get an estimate of the four-wheeler insurance price. Many insurers also allow customers to carry out the car insurance renewal online. You can also know the different riders you can include in the plan with online purchases.

Riders are additions that you can include in the car insurance plan. With riders, you get to improve your plan’s coverage. In addition, you can get insurance coverage for specific situations based on the rider you choose. For instance, the roadside assistance cover will offer assistance if you’re stranded or your car breaks down in the middle of the road. Out of the different riders offered, many individuals get confused between the ‘return to invoice’ rider and the ‘zero depreciation’ rider.

Let’s look at them individually first to learn about their differences.

What is Return to Invoice in Four-Wheeler Insurance?

If the damages to your four-wheeler are huge and your car insurance company declares the case as a total loss, you will be provided with the Insured Declared Value (IDV) of your vehicle, which is stated in your insurance plan. But, if you have the return to invoice add-on in your car insurance plan, you will be provided with your car’s original purchase invoice value. This way, you can get the highest claim amount possible for your vehicle.

What is Zero Depreciation in Car Insurance?

Zero depreciation is a feature you can include in your car insurance policy. With the zero depreciation cover, the claim amount will be provided without deducting the depreciation amount. When you get the insurance claim amount for your vehicle without the impact of depreciation, you are liable to get a higher amount.

Difference Between Return to Invoice Vs Zero Depreciation

Here are some differences between the two:

Return To Invoice Zero Depreciation
Meaning The return to invoice cover gets activated when the damages are beyond repair or if your car gets stolen and cannot be found. The zero-depreciation cover is activated when the car is damaged by accidents, man-made disasters, fires, etc.
Working The return to invoice will help you fill the gap between the IDV and the car’s invoice value during insurance settlement. The zero-depreciation helps you bridge the difference between your car’s damage repair cost and the depreciation value of the parts.
Example For instance, if your car was stolen and was declared untraceable, the return to invoice add-on will help you get the amount you paid at the time of purchasing the car. Suppose your car was damaged because of accidents and needed repairs. In that case, the zero-depreciation cover will help you get the total claim amount since the car’s depreciation will not be included in the calculation.

When Should You Choose the Zero Depreciation Add-On?

If your four-wheeler is less than 5 years old and you don’t want to spend a lot on expenses for damages, opting for zero depreciation would be a suitable option. As the car grows old, your car’s value will depreciate because of regular wear and tear. Zero depreciation is optimal for financial protection and to remove the loss in value of your car parts due to depreciation from the coverage you receive.

For instance, if your four-wheeler gets damaged because of an incident, the repair cost is ₹40,000. Because of depreciation, your insurance claim amount will offer you ₹25,000 for the repairs or replacements of the parts. But, your claim settlement amount can go up to ₹35,000 if you have included the zero depreciation add-on in your comprehensive four-wheeler insurance plan after you have paid the deductible.

When Should You Choose the Return to Invoice Add-On?

The return to invoice cover will cover the price as mentioned in the original invoice for the car in the event of a total loss. Return to invoice is an optimal choice when the four-wheeler is stolen or damaged beyond repair. If you reside in a theft-prone area or where natural disasters are common, return to invoice can be quite helpful.


The return to invoice add-on will help you get the original invoice amount of your car if you file a claim. The zero-depreciation add-on will offer you a higher coverage amount in the case of a claim by removing the impact of depreciation on the claim amount. Both the riders have unique benefits and features. Opting for them will ensure you get a high claim amount if your car is stolen or damaged.

Pax Heber
the authorPax Heber