Depreciation Protection Waiver (DPW)
Protect the Value You’ve Already Paid For
Depreciation Protection Waiver (DPW) helps safeguard your vehicle’s original value—not just your loan. If your car is ever totaled in an accident or stolen and not recovered, DPW can help you recover a portion of the difference between what your vehicle was worth when you paid for it and what you still owe at the time of the loss.
Why it Matters
Most vehicles lose value the moment you drive them off the lot. In fact, the average vehicle depreciates over 30% in just five years. Standard insurance only covers current market value—not what you paid or what your loan balance is.
That’s where DPW makes a difference.
How DPW Works
If your vehicle is declared a total loss, DPW may cover some of the difference between your vehicle’s original Manufacturer’s Suggested Retail Price (MSRP) or J.D. Power retail value at the time of enrollment and your outstanding loan balance at the time of loss. The benefit will not exceed the maximum benefit selected or the outstanding loan balance, whichever is less.
Example:
Vehicle Retail Value at Purchase: $30,000
Loan Balance at Total Loss: $24,500
DPW Benefit Paid: $5,500*
*Benefit is subject to the selected maximum waiver amount and cannot exceed the remaining loan balance.
Who is DPW Best For?
DPW is ideal for members who:
Put money down or have equity in the vehicle
Have positive equity or finance 80% or less of the vehicle cost
Make accelerated payments
Want peace of mind knowing their investment is protected
What’s Covered
✔️ Protection for new and used vehicles
✔️ Works alongside your primary insurance
✔️ No restrictions on vehicle year, make, or mileage
✔️ Life of loan coverage
✔️ Open enrollment – can be added at any time
✔️ 100% refund if canceled within 60 days
✔️ Accidental Death coverage – cancels up to $1,000 of remaining loan balance
✔️ Up to $10,000 in depreciation benefit
What’s Not Covered
✘ Commercial vehicles (except rideshare)
✘ RVs, motorcycles, boats, and recreational vehicles
✘ Leases, cash purchases, balloon notes
✘ Vehicles valued over $75,000
✘ Loans over 84 months
✘ Salvaged or rebuilt titles
✘ Vehicles manufactured before 1981
Important Notes
- In the event of a refinance or loan payoff, DPW coverage ends.
- Claims must be made within 60 days from primary insurance declaring the vehicle a total loss, or within 180 days of accidental death protection.
- DPW may be cancelled within the first 60 days for a full refund. After 60 days from the DPW effective date, the DPW waiver is refundable via the 90% Pro-Rated refund method after 60 days.
Interested in Depreciation Protection Waiver? Make sure your vehicle is protected today! Enroll Now!