Waiver of Depreciation

 

Save money even if you can’t save your car

The limited waiver of depreciation endorsement says the Insurance Company will not charge depreciation within a specified period of time (usually 24 to 30 months) from the date you buy/lease and insure your car when calculating the value of your car following an accident.

You can request this coverage be added when you are insuring a new car that you have just acquired from a dealer. The company will require a copy of the bill of sale or lease agreement in order to add the coverage to your policy.

Under the terms of the endorsement, the insurance company will pay the lowest of the following amounts (less the deductible on your auto policy):

  • The actual purchase price of the automobile and its equipment
  • The manufacturer’s suggest list price on the automobile and its equipment on the original date of purchase
  • The cost of replacing the automobile with a new automobile of the same make and model, similarly equipped

The payment also covers all applicable taxes, but not tires and batteries.

The additional cost for the limited waiver of depreciation can run between $25 to $40 per year, unfortunately, many insured’s may not be aware this coverage is available to them and only come to find out after an accident. An accident can be an overwhelming experience but with this endorsement it can at least soften the blow to your wallet.

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