A depreciation waiver is an optional endorsement that means your car insurance policy will offer replacement value if your NEW car is stolen or damaged beyond repair in a total loss accident. This endorsement will apply for a set period of time after the new vehicle is purchased. At Sonnet, a depreciation waiver is included in our Vroom Service Bundle. It can also be purchased on its own.
Why should I have a depreciation waiver?
Without a depreciation waiver, if you experience a total loss due to theft or accident, you won’t be reimbursed for your vehicle’s full value – you’ll only receive the depreciated value. This means that if you want to replace your car with another new car of equal value, you might not be able to.
Your insurer will pay the lowest of the actual purchase price, manufacturer’s suggested retail price at the time of purchase, the cost of replacing your car with a new car of the same make or model.
- You must be the original owner of the vehicle.
- Tires, batteries, replacing parts for previous unrepaired damage are not included.
- The loss/damage must occur before the policy expiry date.