What Is a Car Insurance Endorsement?
A car insurance endorsement is an addition to an auto policy that either adds additional coverage or changes what is insured by altering your standard auto insurance policy contract. Endorsements allow customers to add perks to their car insurance by covering more situations or types of damage. In some cases, however, insurers use endorsements to limit coverage.
If you're thinking about getting car insurance but aren't sure if you need endorsements, keep reading. We'll go over how endorsements work and which ones you might be able to get depending on your needs, location, and insurer.
What Is a Car Insurance Endorsement?
A car insurance endorsement is a clause that is added to your car insurance policy that alters the coverage. An insurance endorsement can be used for a variety of purposes, including:
- Adding extra coverage
- Increasing the scope of your coverage
- Making changes to the details of your policy
- Restricting coverage by adding exclusions
Alternate definitions:
- A policy endorsement is a policy form that is added to an existing policy. The endorsement is used to clarify how coverage applies, add coverage, or change the coverage of the base policy contract. Changes in coverage, risks, or who is a named insured on a policy may be subject to an endorsement.
- An insurance endorsement is a mid-term change to a car insurance policy that can include changes to the cars, drivers, address, vehicle use, or any other material change in risk during the policy term. Rather than canceling and reissuing the policy, the insurance company will issue an endorsement with the necessary changes.
Alternate names: Insurance rider or amendment
Common Car Insurance Endorsements
When you get a car insurance quote, you will usually be given the option of adding extra coverage from a list of endorsements. Here are some examples of common car insurance endorsements:
- Insurance for rental reimbursement
- Rental car insurance
- Roadside assistance
- Towing and labor expense coverage
- Full glass coverage options, such as no deductible
- Mechanical breakdown coverage
- Deductible waiver options
- Accident forgiveness
- New car replacement insurance
- GAP coverage
- Classic or collector car coverage endorsement (allowing the car to be insured to a stated value instead of its depreciated actual cash value)
- Coverage for driving in Mexico
- Rideshare insurance
If you want to add several endorsements to your policy, see if your insurance company offers an endorsement package. Insurance companies frequently combine several coverages, which may prove to be more cost-effective than adding them individually. It's worth comparing a few quotes to see which one works best for you.
Unusual Car Insurance Endorsements
Aside from the common endorsements provided by many car insurance companies, some less-common endorsements or policy options can help meet specific needs. These protections include:
- Pet injury coverage
- Original-parts insurance
- Better car replacement
- Teachers car insurance
- Reimbursement for in-home care costs while recovering from an accident
How To Get an Endorsement
When purchasing a new car insurance policy, you can usually add endorsements to your coverage as part of the process. You may be able to add specific endorsements to your online quote, or you can contact the insurance company and ask them to do so.
An insurance representative will be able to assess the situation, ask questions, and recommend and issue the appropriate endorsement if you want to add coverage or make changes to your current policy. Online policy management companies may also allow you to request an endorsement through your online account.
When shopping for auto insurance, compare the coverage options and endorsements on each quote. Endorsements may provide more coverage (or less), and they can help you get the best value for your coverage needs. It's not just about finding the cheapest quote.
If you're looking for a specific endorsement and can't find it on an insurer's website, that doesn't necessarily mean the company doesn't provide it. Contact your insurance company and inquire whether it is available in your area. Insurers may use branded names or confusing packages that make it difficult to determine which basic endorsements are available. Furthermore, some endorsements may be unavailable in certain states.
How Endorsements Impact Your Auto Premium
Endorsements can be purchased separately, included as part of a package, reduce your premium (if the endorsement limits or reduces coverage), or have no effect on your premium at all.
For example, if there is an error on your original auto policy and you need to call the insurance company to correct something, such as the spelling of your name, there is usually no charge. You may have to pay an additional premium if you add a new teen driver or increase coverage for a new stereo system.