Auto insurance endorsements are policy additions or subtractions that are designed to provide you with protections that bridge the gaps created by restrictions and exclusions, or to give you a way to opt out of coverage you don’t need.
Providers of auto insurance in Calgary offer different types of endorsements, which is part of the reason you should work with an insurance broker. Another reason is that a licensed insurance broker can shop the options on your behalf, sourcing your coverage from providers that offer the best combination of affordable premiums and essential protections.
Expansion of Coverage Endorsements
The first family of endorsements expands on standard forms of coverage by providing extra protection against specific named perils. Known as expansion of coverage endorsements, these add-ons include:
- Rental endorsements. Adding a rental endorsement to your policy is a good idea if you frequently rent vehicles for work or travel. It extends your coverage to rental vehicles, eliminating the need for you to purchase expensive insurance from the car rental company.
- Rental reimbursement. If your vehicle is in need of repairs due to an insured peril the insurance company will provide a rental vehicle while your vehicle is repaired or replaced.
- Accident forgiveness. At-fault accidents can send your premiums skyward, unless you have an accident forgiveness endorsement. This endorsement is available to qualifying drivers, and essentially gives you a mulligan for your first at-fault accident, keeping your premiums where they are.
- Roadside assistance. This is one of the most popular expansions on regular coverage. It covers the cost of flat tire repairs and tow trucks if an incident leaves you stranded by the side of the road. You’ll also enjoy the peace of mind that comes with knowing help is just a quick phone call away.
- Gap coverage. If you’ve purchased a new vehicle and its depreciated resale value is less than the amount of money you still owe on the car, gap coverage will cover the difference in the event of a total loss of the vehicle.
Adding these forms of coverage to your policy will usually prompt a modest increase in your premiums. However, they’re also worth the added peace of mind, especially if you’re on the road a lot.
A second family of endorsements allows you to opt out of coverage you don’t want or need. Known as restrictive endorsements, these policy changes help you save money on your insurance premiums. This list of common restrictive endorsements includes:
- Front windshield endorsements. Also known as 13-D endorsements, this opt-out removes coverage for your windshield glass.
- Deductibles. Yes, deductibles are a type of restrictive endorsement. Raising the deductible on your policy is one of the easiest and most effective ways to reduce your premiums.
It’s important to note that opting into restrictive endorsements can increase your financial risk. For example, if you get a 13D endorsement that removes front windshield glass coverage from your policy, you’ll save a little on your premiums but you’ll have to pay out of pocket for any damage your windshield might suffer. In all cases, you should calculate the savings on your premiums and weigh them against the potential costs you might be on the hook to cover to determine if it’s worth getting a particular restrictive endorsement.
Remember, it’s very important to pay attention to the particulars of your own auto insurance policy. The coverage offered by each policy differs somewhat, and there may be restrictions on the endorsements you can include. Ask your insurance broker if you are at all unclear on your coverage parameters.
Get an Auto Insurance Quote from Lane’s Insurance
Lane’s Insurance is a leading Alberta-based brokerage, offering professional advice and friendly, courteous service. The brokers at Lane’s are always available to answer your questions, and their in-depth knowledge helps you get the best coverage on the market at the most competitive possible prices.
Lane’s Insurance can also help you save up to 20 percent when you bundle your auto insurance in Calgary with your homeowners’ coverage. Get started today by requesting a fast, free, no-obligation auto insurance quote.