We often receive calls asking about endorsements on auto policies. Questions about things like:
- glass coverage
- physical damage coverage on rental vehicles
- if a driving record changes after a claim
Hopefully we can answer some of those questions with this overview of some of the most common endorsements. If you have questions or are unsure you should always check with your insurance broker.
What is An Endorsment - As it Pertains to Your Insurance Policy
An endorsement is an attachment to a standard automobile policy that increases or reduces coverage under the standard policy. The more common endorsements include:
- Comprehensive Cover Limited Glass (SEF 13D). This limits the coverage on a vehicle’s glass for a reduced premium.
- Loss of Use (SEF 20). Provides for the rental of a vehicle or the use of taxicabs and public transportation to a specified daily dollar amount and total amount in the event your vehicle is damaged due to a loss covered by the insurance policy.
- Legal Liability for Damage to Non-Owned Automobiles (SEF 27). Extends the physical damage coverage and deductible that you have on your personal vehicle to a rental vehicle.
- Accident Rating Waiver (SEF 39). This endorsement protects the renewal premium from increasing as a result of an at-fault accident involving the vehicle to which the endorsement applies.
- Limited Waiver of Depreciation (SEF 43R). This endorsement will waive any depreciation on repair or replacement of a new vehicle (subject to certain restrictions) should it suffer an insured loss. The term for which this coverage is offered varies with insurer (typically 24-30 months).
- Family Protection (SEF 44). Protects you and family members in your vehicle if you are involved in a collision with an uninsured or underinsured driver. Even though you may have the right to collect money from an at-fault driver to reimburse you for your claim, if that driver doesn't carry enough insurance or has no insurance at all, your claim may not be fully paid. SEF 44 pays the difference between your claim settlement amount for injuries arising from the accident and the third party liability limit of the at-fault driver's policy up to your own third party liability limit.
Above are the most common coverages available to you. Working with your Insurance professional you can create a policy that includes endorsements you want and the deductibles you want for the specific coverage. Your Insurance professional can help you determine the right cost for you by setting the right deductibles.
For more information on your auto policy see - Understanding Auto Insurance
And remember for all of your Edmonton and Alberta auto insurance needs, Armour can help!
