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With high disposable income and easy financing options, owning car is no longer a difficult task. However, the feel of burden may start with the everlasting maintenance expenses. To add to this, any unfortunate events like accident and theft can burn out the wallet completely if the adequate and comprehensive insurance plan is not in place. To multiply the basic coverage, it’s often recommended to go for comprehensive car insurance along with necessary add-ons. Return to invoice or Invoice protection add-on is one such fruitful rider that enhance the comprehensive coverage offered by your insurer.

Invoice Protection Add-on

In case your car suffers any total loss due to accident or if your car gets stolen, invoice protection add-on compensates the loss by paying you the original invoice value of your four-wheeler, inclusive of road taxes and registration charges paid. That means you will be compensated with the on-road price of the car that you paid during the purchase.

Usually, a standard comprehensive plan compensates the total loss incurred due to accident, theft and burglary to the extent of IDV of your car. Insured declared value or IDV is the current market value of your car after factoring in the depreciation value which increases at the rate of 10% year on year. IDV of your car reduces yearly with the aging. Invoice protection add-on is offered to cover the gap between the original invoice value and insured declared value of your vehicle by compensating the differential value.

As Invoice protection cover is an optional add-on, car owners have to buy this separately on top of the basic comprehensive plan by paying some additional premium. Usually, one can avail this by paying 10% more on standard premium. However, it’s available only for new vehicles with some specific age limit. Click here to know more about Invoice Protection Add-on.

Applicability of Invoice Protection Add-on

As it is an additional coverage offered over and above the standard plan, it covers only specific events and damages. This special rider gets applicable with some specific conditions. Here are few situations or circumstances at which invoice protection add-on can be applied:

  • If your car is stolen or is beyond repair, then only you can get the compensation under invoice protection. This particular add-on does not cover minimum damages like dents and cracks to your vehicle.
  • You can get this add-on cover only for your new car. Usually, cars beyond 3 years old are not covered under this add-on keeping in mind the regular and wear and tear that increases with aging.
  • Under the invoice protection add-on, some insurers pay the entire on-road price of the vehicle as compensation. And some insurers may pay certain percentage in addition to ex-show room price. Hence, it’s important to read through all the clauses, terms and conditions of the insurance policy to understand the scope of coverage offered.

Suitability of Invoice Protection Add-on

  • It’s a most effective add-on for brand new car as value of the car depreciates every year at the rate of 10%.
  • If you stay in a locality that is more prone to theft and burglary, then this is a must-have add-on for you to extensively stay protected from such high risk.
  • If you are a frequent traveller on highway, then this is the most recommended add-on for you! In case the car gets damaged beyond repair due to an accident, insurer compensates you the initial cost of your car.


To sum it up, add-ons like invoice protection are value-addition to your standard car insurance plan. Hence, evaluate your need and customize your car insurance plan according to your need. Car insurance is a crucial investment as it safeguards you and your valued possession. Hence, be smart enough to make a wise choice!

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