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:

Replacement Cost Coverage

Suppose you purchase Replacement Cost coverage when insuring a brand-new vehicle. In that case, 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 for Glass Breakage

You can add Road Hazard Glass to Auto insurance policies to have a deductible and lower your regular $700 deductible to $50. This coverage can help you save when you need to replace your entire windshield due to rock kick-ups or if something else flies up!

You need to know a few things to qualify for a lower deductible for your car insurance policy.

1. Before adding this coverage, there can’t be any pre-existing damage to the windshield.
2. Claim history will be reviewed before adding. If you have been found to have filed an RHG claim consistently in a short period of time, you may only be able to choose a higher deductible limit, or this coverage may not be available.

Coverage for transportation replacement (Loss of Use)

If you cannot drive your car due to an accident or if the vehicle was stolen, you may be able to get coverage from your car insurance company. Many companies offer loss of use coverage, which will help you into a replacement vehicle while your vehicle is being repaired or replaced. Your rental vehicle will also be insured under your policy automatically as a temporary substitute vehicle.

Or suppose instead of renting a vehicle, you choose an alternative method to travel, such as using public transit or taking a taxi. In that case, your insurer will pay up to the amount of coverage you’ve chosen during the claim. Lastly, if you choose to rent a vehicle for whatever purpose, however it’s damaged during the course you have it, you can apply loss of use to cover downtime charges set by the rental company.

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.

Personal Liability Protection

Looking to protect yourself financially from a potential lawsuit? Increasing your liability limit can help protect you financially from the pain of a nasty lawsuit.  Did you know that the plate registration liability limit was set nearly 40 years ago, in 1985? The cost of vehicles, injuries, and lost income has changed significantly since then. If you are accused or found responsible for causing bodily injury or property damage, you’ll want more than the basic $200,000 plate limit.

We highly recommend increasing your liability limit, especially for newer drivers, because statistically, new drivers may be at a higher risk of causing an accident.

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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