Standard Endorsement Form 43. This form waives depreciation when a new vehicle is added to the policy and the depreciation will not take effect until after the specified period of time as shown on the endorsement. Some insurers will give you this protection as part of your collision and comprehensive coverage and not charge extra premium.

The protection period is usually 24-30 months from purchase date. We are seeing a movement amongst some of the insurance companies to offer a longer term - up to five years. The longer period protection does cost more money and the higher the rate group of your vehicle then the higher the premium.

If the (L) is shown then this indicates that the vehicle is leased. Leased vehicles often include a waiver of depreciation clause if the loss is total, the vehicle is written off. If the loss is partial then you need to have the coverage from the insurance.

If you have this coverage then you can not be charged a betterment fee when you have a claim. An example is: your vehicle is "keyed" resulting in needing a new paint job down the driver's side. This could be considered a betterment if your vehicle is now 16 months-old as the paint job is considered "new" and your vehicle is not.

Certain motorcycle manufacturers offer a guarantee that the first $5,000 will be covered in case of a loss to one of their brand new bikes. Perhaps the car manufacturers will start offering something similar - a way of reducing the depreciation of the vehicle.

Discuss your options with your agent or broker. It would help ease your stress if your new vehicle is replaced with another brand new vehicle after an upset or collision that results in a write off.

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