A Waiver of Depreciation is added to newly purchased or leased commercial vehicles which prevents your insurance company from deducting depreciation from the value of your automobile after it has been involved in a total loss. As soon as a new vehicle is driven off the lot of a dealership its value begins to decline sharply, therefore this coverage will ensure a policyholder receives an adequate settlement in the event that their vehicle is involved in a total loss. Not carrying this coverage will result in a substantially lower payout. Insurance companies will offer this coverage for vehicles that qualify for a period of 12, 24 or 36 months. Although a vehicle may be purchased new, some commercial vehicles are not eligible for this coverage with certain insurance companies due to the vehicle’s classification. Connect with your FCA broker when purchasing a new vehicle for guidance on what company to insure your vehicle with, in order to secure this vital coverage for the longest duration possible.