In addition to your compulsory and optional coverage, you can add other types of coverage to your car insurance policy. These additions are called endorsements.

What is an endorsement?

An "endorsement" enhances your coverage. When you choose to add an endorsement to your policy, it provides more coverage and better protection, but you must pay a supplement for this type of coverage. A number of endorsements are available on the auto insurance market to meet your needs.auto insurance endorsements

Replacement Cost (endorsement)

Replacement cost coverage pays out an indemnity that does not factor in depreciation.
Two such products are offered :

  • Replacement insurance
  • Endorsement 43 – Change to loss payment. This coverage offers several options. Ask your agent or broker about it.

Both products are sold mostly for new cars. They pay out an indemnity without depreciation in case of a total or partial loss.

Differences between replacement insurance and endorsement 43

Specified duration of up to eight years without renewal.
 

Partial loss
Damaged parts are replaced by new original parts only if they cannot be repaired.
 

Total loss (or theft) – new vehicle
Obligation to replace the vehicle as per the option chosen when the policy is purchased:

  1. Replace the vehicle by a new vehicle of equal or greater value from the dealer designated in the policy; or

  2. Receive payment of the indemnity and replace the vehicle from the dealer of your choice.

Note: If you replace your vehicle with a vehicle of a greater value, you pay the difference.
 

Following a claim
The policy ends and cannot be transferred to another vehicle. The insurer reimburses you the unused portion of the premium.

Although there is a defined period (three to five years), it is renewed each year, at the same time as the policy.
 

Partial loss (43A)
Damaged parts are replaced by new original parts only if they cannot be repaired.
 

Total loss (or theft) – new vehicle (43E)
Choice to be made at the time the claim is made:

  1. Replace the vehicle by a new or used vehicle of equal, lower or greater value (from the dealer of your choice); or

  2. Not replace the vehicle (cash indemnity).

Note: If you replace your vehicle with a vehicle of a greater value, you pay the difference.

Auto prevention

Prevent your car from being stolen

Here are steps you can take to minimize the risk of having your vehicle stolen. Click to find out how.