Endorsement 27: coverage for damage to vehicles you do not own

Do you sometimes borrow or rent a vehicle? You can be insured! 

You can add additional coverage, known as an endorsement, to your auto insurance policy that will cover you for damage to a borrowed or rented vehicle should you have an at-fault accident. It’s known as Endorsement 27 - Civil liability resulting from damage caused to vehicles of which named insured is not owner.

This endorsement can come in handy:

  • When you rent a vehicle while on holiday, as it can cover the rental vehicle, often at a lower cost. In this case, you won’t have to take the rental company’s Collision Damage Waiver.
  • When you borrow your parents’ or a friend’s vehicle.
  • When you’re given a temporary replacement vehicle (courtesy car) while your vehicle is in for maintenance or repairs. 

What you need to know about Endorsement 27:

  • This endorsement covers damage to a vehicle you do not own, only if you have an at-fault accident (a not at-fault accident will be covered under the vehicle owner’s insurance). 
  • The coverage and deductible can differ from those under your insurance policy. For example, you can have All Perils coverage with a $750 deductible under your insurance policy, and have All Perils other than Collision or Upset coverage with a $500 deductible under the endorsement.
  • The endorsement includes a coverage limit by loss (what the vehicle owner wants to claim for the loss). N.B. If you plan to borrow or rent a sports car, or a luxury vehicle, make sure the limit is sufficient to cover the vehicle’s value. 
  • The endorsement also establishes the type of vehicle covered (auto, RV, motorcycle, etc.) 
  • It’s up to you whether or not to use your Endorsement 27 to cover a loss. You’re not obliged to do so. If you choose not to use it, the owner’s insurance policy can cover the loss, provided he has the required coverage.
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