Customizing Your Coverage: Auto Insurance Endorsements And Their Benefits

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You're flipping through your car insurance policy documents and come across a section labeled "Endorsements." What does that mean?

Customizing Your Coverage: Auto Insurance Endorsements And Their Benefits

The endorsements listed on your car policy are designed to personalize your car insurance to suit your specific needs.

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Your auto insurance endorsement, also called an endorsement, is a statement that modifies your policy by changing, adding, or removing coverage or conditions.

Think of it this way: Most car insurance policies are pretty standard. Of course, you can change your coverage limits, but generally the language that describes what is covered is the same.

Some auto insurance deals give you additional coverage in your policy. You may want to add these insurance products to customize your insurance to provide you with the specific coverage you need or want. There are several common coverages available:

Endorsement of Rental Reimbursement Cover: If your car is in the workshop for repairs after an accident, this endorsement adds cover for the cost of the rental car for a certain period of time. This usually increases your premium, so only add it if you need a rental car to get around.

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Waiving (or decreasing) deductible approval: Every year you don't file a car insurance claim, you get a deductible credit (usually $50 or $100). This means that if you need to make a collision or comprehensive claim, you can pay a reduced deductible or no deductible at all. However, this approval usually comes at an additional cost, so you'll need to figure out if it's worth it.

Modified Car Approval: Have you paid thousands for custom car modifications or an impressive paint job? You then need an auto insurance endorsement that covers these modifications so that you can repair/remodel them if your car is involved in an accident. It's not just for cosmetic or performance mods. If your car has accessibility modifications, you need to consider those as well.

Classic car insurance: If you own a classic, antique or collector car, you will need a specific insurance policy. This policy may include some classic car recommendations depending on the condition of the car and how you use it.

In addition to the more common car insurance endorsements, you may want to consider some more unusual ones for special situations.

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Import Vehicle Permit: If you purchased your vehicle from an owner in another country, you may need to purchase an import permit to fully cover your vehicle.

Better Car Replacement: By adding a better car replacement agreement to your policy, if your car is a total loss after an accident, your insurance company will give you money for a newer model car. This policy ensures that you don't end up with a vehicle that is older than your original.

Different Type Vehicle Endorsement: If you have a less common vehicle, such as a golf cart or RV, a different type vehicle endorsement allows you to add it to your existing car insurance policy.

Commercial Use Coverage: If you use your vehicle for commercial purposes, an endorsement for Commercial Use Coverage, also known as commercial use, can ensure that your vehicle is insured and covered, even when you are using it for business purposes.

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Before you start shopping for an endorsement, it's a good idea to research the different types available. This can help you narrow down your search and focus on the type of support that will give you the coverage you need.

If you would like to add a rider to your existing car insurance policy, you can contact your insurance provider to find out what is available. Many insurance companies can add one to your current policy over the phone or online.

If you are looking for a specific endorsement, especially one of the more unusual options, you may need to look for an insurance company that offers this type of coverage. Getting quotes from different insurance companies can also help you save money. By comparing the endorsements available, you can find the insurance plan and rider that best suits your needs.

Makes it easy to shop for auto insurance endorsements. All you have to do is fill out our auto insurance comparison calculator, which takes about five minutes. You will then receive personalized quotes from 65 insurance companies.

Create An Out Of Sequence Endorsement

Some endorsements have a deductible, while others do not. If they have a deductible, they may let you choose an amount you're comfortable paying. Generally speaking, higher deductible endorsements mean lower premiums. At the same time, you can expect a higher approval premium with a lower deductible.

Since deductibles can vary, it's important to consider whether an endorsement has a deductible at the time of purchase.

Some endorsements can increase your car insurance policy, however these increases are often minimal compared to the total cost of your policy.

The type of endorsement you choose will also affect what you'll pay. For example, more common and minor endorsements like roadside assistance can add just a few dollars a month to your premium. Options like commercial coverage that significantly change your coverage will cost more.

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Endorsement costs will also depend on whether the insurance company considers you a high-risk driver. Factors like your driving record, credit score, education and even marital status can affect the amount you'll pay. These price variations mean it's best to shop around and compare prices from different companies before buying an endorsement.

Endorsement of insurance:  A 'guaranteed car protection' (gaps insurance) cover will pay off your loan if your car is involved in an accident or stolen. If you finance or lease a vehicle, gap insurance may be required. Pro tip: Most car dealerships can add gap insurance as an extra at the time of sale, but you can usually get it cheaper through your insurance company.

New Car Trade-in Endorsement: This coverage pays to trade your new car in for another one of the same make and model if your car is totaled shortly after its purchase.

If you're thinking about driving for Uber, Lyft, or a package or food delivery service, you need to check your car insurance. A personal car insurance policy does not cover a vehicle if it is used for business. And while ride-sharing and delivery companies provide their drivers with some insurance, it doesn't fully protect you.

Auto Insurance Endorsements Worth Adding To Your Policy

This is when a special approval is required for a joint trip or delivery. These auto insurance endorsements can protect you during breaks in coverage, such as when you're busy but waiting for a ride request or delivery order. Co-ride/delivery approval may also cover a portion of the deductible that you will pay through your company's insurance policy.

We've covered most of the standard car insurance endorsements you might find on a policy, but here are a few more:

Named Driver Exclusion Endorsement: This endorsement excludes specific drivers in the household from your comprehensive coverage or collision coverage. This can help save you money, but you will have zero coverage for the vehicle if an excluded family member is driving it for any reason.

OEM (Original Equipment Manufacturer) Endorsement: OEM Endorsement states that only parts made by your vehicle manufacturer (not cheaper aftermarket parts) can be used to repair your vehicle.

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Contact your insurer if you need an endorsement on your car insurance policy. But before you do, it doesn't hurt to find out if you can save on your current policy. customers save an average of $720 a year on car insurance by comparing quotes and choosing the cheaper option.

Pet Injury Insurance Endorsement: Some auto insurance policies include a rider that offers coverage if your pet is injured or killed in an accident. If your cat or dog is injured, this cover can help pay for vet bills and a death benefit may also apply.

You may also hear the term "racer" when buying an endorsement. Rider and endorsement are the same thing, and some insurance companies use the two terms interchangeably.

Yes, because the endorsement changes your policy, coverage can be removed. Alternatively, an endorsement can add coverage or change coverage to your car insurance policy.

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Nick Versau heads up the editorial department, where he and his team specialize in developing useful, easy-to-understand content about auto insurance and other related topics. An award-winning writer, Nick has published his work in countless prominent publications such as the Washington Post, the Los Angeles Times, and the U.S. News & World Report. He graduated with honors in Latin from Virginia Commonwealth University, where he earned a bachelor's degree in digital journalism.

Goal #1 is to save you money. We publish resources based on hard data and years of industry experience to help you make more informed decisions with your wallet. Many owners like to update their cars with custom parts such as aftermarket window tint, paint, etc. But many may need it

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