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

See the differences between replacement insurance and endorsement 43.
 

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

Short-term rental of a vehicle (endorsement 20)

This coverage allows you to rent a vehicle for a specified period of time, should you lose the use of your vehicle following an accident.
 

Damage to vehicles not owned by the insured (endorsement 27)

This endorsement provides coverage should you damage a vehicle that you've borrowed or rented in Canada or the United States. The coverage offered is often the same as that for your own vehicle. Most of the time, it's more advantageous than the insurance offered by the car rental company.

This coverage also protects you if you damage a vehicle that has been loaned to you.
 

Accident Benefits (endorsement 34)

This endorsement is designed to compensate for death or dismemberment resulting from an automobile accident. It also includes coverage for the cost of medical expenses or loss of income.

Often included in automobile insurance policies, this coverage provides for a reimbursement generally between $10,000 and $15,000 should death occur. For the reimbursement of medical expenses or loss of income, note that the compensation complements that provided by the Quebec public plan administered by the Société de l’assurance automobile du Québec. It also includes different amounts of insurance and restrictions that may vary from one insurer to another. Ask your agent or broker for more information.

 

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

For policies in effect prior to March 1, 2019:
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.

 

For policies in effect as of March 1, 2019:
Obligation to replace the vehicle.

  1. 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. If you replace the vehicle by a vehicle of lesser value, the insurer will use the value of this vehicle to calculate the indemnity.

 

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 tips

Newcomer to insurance: starting out right

You have started to drive. Whether you have a learner's or a probationary licence, you must inform your insurer immediately. Click to find out more.

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