What’s really covered in your auto policy?
An understanding of the endorsements is vital for you to know what you’re paying for, and what you’re getting. Because we read and understand the fine print in all the policies we sell, we can make sure our clients know exactly what their policy includes.
For your information, here is a brief explanation of some of the most common endorsements:
Used when an employee is required by their employer to carry clients or patients in the course of their work. Often relates to the home care field but can also extend to child care etc.
As an addendum to glass insurance, this eliminates all coverage for the windshield and headlights, except for vandalism or fire. Also, this eliminates coverage on the remaining glass from damage caused by projectiles coming off tires of other vehicles while driving down the road.
Limits the amount the insurer will pay in the event of a collision or comprehensive loss to a maximum of the actual cash value or the amount listed on the endorsement or the purchase price, whichever is lower.
This “valued” policy applies a stated value to what the insurer will pay in the event of a total loss of the vehicle. The stated value is determined by an appraisal of the vehicle. determined by an appraisal of the vehicle.
Loss of use provides a specific amount (stated on the policy) of money that would be available for finding alternative transportation in the event of an “insured” loss. This alternative transportation is most often used for renting a vehicle, but can also extend to cab fares and bus passes.
This endorsement extends collision and comprehensive coverage from your policy to a rented car in your name. This differs from the above as it only covers the additional insurance cost of the rental, not the cost to rent.
This also does not have the requirement that there be a claim to your vehicle. Used typically when people are flying to a vacation destination and renting a vehicle.
Applicable to commercial vehicles only, this excludes liability coverage for the operation of attached machinery such as a crane, dump box, welder etc. An auto policy is not meant to provide coverage for such operations. This coverage would be available on a Commercial General Liability policy.
This endorsement should be added to all personal vehicles that qualify. In order to purchase this, you need to have at least 5 or 6 years without a claim and have a rating of a 5*, 6* or better. Often referred to as “accident forgiveness” this endorsement will prevent an increase to insurance rates in the event of one at-fault accident. Some companies include this at no charge, while others will charge a nominal fee such as $40.00 per vehicle.
Waives the depreciation on a vehicle in the event of a total loss. The insurer will pay the full purchase price to the insured if the vehicle is written off, usually limited to 30 months from date of purchase. If the vehicle is leased, the endorsement would be a 43r (L) and would do the same as the above, but would not repay the GST.
The most common endorsement, yet often the most misunderstood. This endorsement provides coverage if a third party (i.e. the other vehicle) is at fault, but they do not carry adequate (or any) insurance. This will pay, up to the limits of your own policy, whatever a court awards you, in excess of what the other party carries for insurance. This would be limited to bodily injury and general damages, not property damage.
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