Automobile insurance claims are normally settled based on the actual cash value of the vehicle. The moment you drive it off the lot, the vehicle will start to lose its value. However, you can protect yourself by purchasing a waiver of depreciation from your insurer. This coverage will indemnify you for what you paid for the vehicle, or replace the vehicle with an identical new one. This coverage will provide anywhere from 24 to 48 months coverage, depending on what you purchase. This coverage is only available on brand new vehicles and demos that have a limited amount of mileage.
If you’d like to know more about the waiver of depreciation and how it applies to you, give your broker a call.