Depreciation Protection Waiver (DPW)

Let’s say you purchase a vehicle for $33,500 and put money down on the vehicle, have a vehicle trade, dealer rebate, or negotiate a deal lower than MSRP, and takes out a loan for $29,800. This means you have a positive equity of $3,700. Depreciation Protection will protect that positive equity! The “locked-in” value of the vehicle is the purchase price, which will remain the same, for DPW purposes, throughout the loan term. As the loan balance is paid down over time the “positive equity” will grow. So, if your vehicle was totaled, DPW pays the difference between the MSRP/Retail “locked-in” value at the time of the waiver purchase, and the amount of the outstanding loan balance at the time of loss – not to exceed the waiver addendum maximum ($5,000 or $10,000). With DPW, the amount will be applied to the loan and you will still receive your settlement from your primary insurance company based on the actual cash value of the vehicle. This could leave money in your pocket to put down on your next vehicle!

The waiver benefit will not exceed the maximum benefit selected or the outstanding loan balance, whichever is less.

Depreciation Protection Waiver provides a new benefit to help protect the "equity" in your auto loan, compared to the “negative equity” protected by Guaranteed Auto Protection (GAP).

DPW pricing varies based on the coverage amount and the vehicle price. Call us at 800.UCU.4510 or book an appointment with us if you're interested in DPW, and we can provide a cost breakdown based on your vehicle's price.