On average, a vehicle depreciates to half its value within the first 4 years. The vehicle loses 20% the first year and 15% each year after that. What happens if your vehicle is written off in the first few years of buying it? What if you owe more on the car than what it is worth due to deprecation? You could be left having to pay quite a bit before you can get a new ride.
They good news is that there are a few ways to cover the depreciating value of the vehicle and to make sure you are not left holding the bag.
The basic depreciation protection is an add on to any auto insurance policy. It is only available on brand new vehicles and depending on the company is only offered for two to five years. We call this the basic depreciation protection option, it gives you decent coverage but there are still quite a few scenarios where you could end up owing more that what you get or may not be able to replace your vehicle with the exact make and model without paying more.
The best option you can get is Optiom Prime coverage. With Optiom Prime, you are automatically eligible for up to 7 years of coverage on new Vehicles, and up to 5 years of coverage on used vehicles. Optiom will pay the difference between what your auto policy pays for the vehicle and the MSRP of a brand new equivalent replacement vehicle at the time of the accident. Your premium is locked in at policy inception and this policy can be cancelled at anytime with no penalties.
On top of the depreciation protection Optiom also offers the following coverages and more:
• OEM Parts Replacement
• Deductible Reimbursement
• Key Fob Replacement
• Premium Increase Protection
• Car Seat Reimbursement
Whether you are buying a new car or own a used one, call Absolute Insurance Brokers at 1-877-941-2266 today to find out how you can better protect yourself and your new investment.