What is a Damage Waiver?
When you’re leasing a vehicle, one bit of paperwork that is often missed or forgotten about is the damage waiver. But what is a damage waiver?
The damage waiver typically spends its time in the background, but if your vehicle gets into an accident or is damaged by road hazards, it morphs into a powerful tool that can help shield you from the bulk of costs that are incurred when it comes to turning in your vehicle at the end of your lease.
This special waiver can only be bought within the first month of a new vehicle lease period, with the fore-mentioned waiver covering vehicles up to an MSRP of $150,000. This means even some exotic vehicles are covered under this unique form of protection.
This waiver can only cover up to $5,000 of damage, covering up to $1,000 of damage per panel. In addition, it can only be used at the end of your lease when your vehicle is being inspected. Thankfully, both the exterior and interior are covered under the waiver, which translates into a valuable asset for those that lease their vehicles.
This is especially true when it comes to electronics, which can be a make-it-or-break-it item on high-end luxury cars. With the waiver, owners could be covered for the bulk of electronic replacement. In addition to electronic replacement, the waiver can also cover select bits of interior trim, which can include leather, plastic, carbon fiber and other interior materials which may have been damaged during the course of the lease. These items can be costly to replace and many auto insurance policies would either not cover them outright, or force you to pay a hefty sum of money to pay for the cost of replacing them.
Do Damage Waivers Cover Tire and Wheel Protection?
Damage waivers cover all types of damage, including tire and wheel protection. This can give you great peace of mind if you discover damage that is not included by a tire and wheel warranty. If you choose not to get a damage waiver, the results would be very different. For starters, if you chose to use your car insurance to cover the damages, it would cost considerably more money and it would also cause your premium to shoot up, especially if costly electronics and other interior items are factored into the equation.
With these advantages and so much more, it’s easy to see why a damage waiver can be a valuable asset when you are ending the lease on your vehicle. The protection it provides can help shield your budget from major repairs, and make the process of turning in your vehicle easier and smoother at the same time.