Kanetix Forum

Is it worth adding waiver of depreciation on a new car? Also how much does the premium increase in the 2nd and 3rd year of the policy? Does it increase alot?

The broker won't give me an idea how much it will increase?

Hi,

Waiver of depreciation coverage on a new vehicle is generally a must have. The premium charged is often in the $20 - $50 range annually and can save you thousands of dollars if your new vehicle is involved in an accident. The value of adding this coverage is very high.

Insurance rates fluctuate year to year as companies increase or decrease their pricing. It is very difficult to predict what rates will look like in 2-3 years from now. What your insurance broker can tell you is what your insurance rating will look like in a year or two, assuming safe driving. While you can never predict what companies will do with their pricing from year to year, you can get an idea of whether your own rates could improve, relative to the industry trends. Any good broker can do this for you.

Best,

Sean Graham, Principal Broker at KTX Insurance Brokers

Thanks for the info, very helpful. Most companies allow this extra coverage for 2 years. Does this mean that you only pay this for 2 years?

Glad I was able to help. This coverage normally last for two years however it really depends on the insurance company you are with.

Best,

Sean Graham, Principal Broker at KTX Insurance Brokers