5 Vehicle Coverages to Add to your Insurance Policy

In the insurance world, an “endorsement” is a change to the existing coverage in your policy. It can add or remove coverage, and it overrules anything that’s written in the policy itself. Here are five common car insurance endorsements you could consider purchasing to enhance your coverage:

Waiver of depreciation:

If you purchase a waiver of depreciation, also referred to as Replacement Cost coverage, when insuring a brand new vehicle, you’ll be covered for the full purchase price or the manufacturer’s suggested retail price (whichever amount is lower) if your car is stolen or damaged beyond repair. Without it, you’ll only receive your vehicle’s depreciated value (or the actual cash value), which might not be enough to buy a brand new one. Before insuring your new car, ask your broker if you qualify for this endorsement.

Insuring a vehicle to the stated value

Sometimes, the actual value of an antique or specialty vehicle is higher than the actual cash value that your policy would pay out in the event of a claim (for example, if you had a 1957 Chevy and kept it in a garage since the ’50s and barely drove it, it would be worth a pretty penny — but its actual cash value would likely be considerably lower if you hadn’t preserved it so well). This endorsement allows you to insure your vehicle up to the amount specified by a professional appraiser.

Coverage for transportation replacement

This endorsement covers the cost of alternate transportation (like a rental car) if you’re stuck without your vehicle because of an insurance claim.

Legal liability for damage to non-owned vehicles

Also known as the “rental vehicle insurance endorsement,” this endorsement extends your liability coverage to protect you if you’re held responsible for damage to someone else’s vehicle. At the same time, it’s in your care — as long as you’re driving in Canada or the United States. Bonus tip: If you have this endorsement, you may be able to avoid buying the rental company’s optional insurance when you rent a vehicle.

Use of recreational vehicles by unlicensed operators

If you get this endorsement when you insure a recreational vehicle like a snowmobile or ATV, it extends your coverage for times when it is being driven off-road by someone either unlicensed or under 16. You’ll need this endorsement if your 14-year-old daughter wants to learn to snowmobile, for example. The good news? There’s usually no charge to add this endorsement to your policy.

While the names, specific terms, and costs of these common endorsements may vary by location and insurer, they are (for the most part) available across Canada. Contact your licensed broker to find out if you qualify to add any of these endorsements to your car insurance policy or to learn more about your options.

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