This can apply when you purchase or lease a new vehicle. This protection will reference your original purchase agreement so do keep a copy of your bill of sale.
If your vehicle has been purchased new then for a period of 24-30 months your vehicle will be regarded without reducing value for wear and tear.
Many lease companies will provide "gap insurance" but this is for total loss of the vehicle. For repairs up to total loss you require this protection under your insurance policy. Without it you could pay a betterment fee for repairs done with new parts. You must carry Section C coverage - Collision and Upset and Comprehensive or Specified Perils to qualify for this coverage.
There is now a few companies that will offer up to five years coverage for waiver of depreciation. It is quite expensive but could be of importance to certain people.
Know what your limitation is with your current insurer. Talk to your agent or broker about what else you could have with another company.
