What Is an Endorsement in Car Insurance?

 

What Is an Endorsement in Car Insurance?

An endorsement in Car Insurance is a formal amendment or an addition to your existing policy. With endorsements, policyholders can modify their coverage according to the changes in their lives or needs. Let’s assume that you have to move cities because of your work. You can apply for an endorsement in your Car Insurance policy to change your address to the new one you will move to.

 

Insurance policy endorsements help keep the policy up-to-date, whether you change your personal information or add a new accessory to your car.

 

Endorsement of Policies in Car Insurance

Now that we’ve defined what an endorsement in car insurance is, let us look at how it works within your Car Insurance Policy.

 

Who Can Initiate Endorsements?

Endorsements can be initiated by both the policyholder and the insurance provider. Though the policyholder usually initiates endorsement, the insurance provider can also issue an endorsement when there are policy changes or new regulations to comply with.

 

Is a New Policy Issued After a Car Insurance Endorsement?

An endorsement is a modification of your policy, and a new policy document may not be issued for every endorsement made. However, if you make substantial changes, like transferring vehicle ownership or coverage adjustments, your insurance provider might provide a new policy document to comprehensively convey these updates.

 

Types of Endorsements 

Endorsements can be categorised as basic and advanced. Here is what that means:

 

• Basic Endorsements: Basic endorsements are straightforward modifications to your insurance policy, such as updating your address, changing any mistakes in your personal information, adding or removing drivers, or correcting any details about the vehicle. These do not significantly impact the premium and are mostly administrative changes.

• Advanced Endorsements: More complex changes to your policy that can significantly affect your premium and coverage are called advanced endorsements. For example, if you want to increase your policy coverage limits or include an add-on like Zero Depreciation, it would be an advance endorsement. Advanced endorsements usually result in a revised premium.

Here are some examples of the various types of advanced insurance policy endorsements you can make:

 

• Significant modifications like CNG kits or engine changes.

• No-Claim Bonus (NCB) protection

• Legal Liability Cover for paid driver

• Increasing the limit for third-party property damage cover

• Additional protection for natural disasters and other specific risks.

• Engine Protector Cover

• Consumables Cover for items like oil and bolts during repairs

• Roadside Assistance Cover

• Zero Depreciation Cover 

• Personal Accident Cover for passengers

 

How Often Can Endorsements Be Made?

Endorsements do not usually have a fixed frequency limit, but this may differ from insurer to insurer. They are mostly done when renewing a policy. As a good practice, it is recommended that a policyholder does not make more than two endorsements a year. Frequent changes in your policy can cause a lot of confusion, and if there is a problem while making a claim, it can cost you. Your insurance provider can refuse to settle a claim if any change or modification has not been endorsed.

 

Validity of Insurance Endorsements

An insurance policy endorsement is valid as long as the policy on which the endorsement is made is active. Once your Car Insurance endorsement is approved, the new terms or changes become part of the contract and last until the policy expires or is renewed.

 

How Do You Make an Endorsement?

Making an insurance policy endorsement is a straightforward process and involves a few key steps. Here is how you can go about making an endorsement:

 

1. Identify the endorsement type: Based on the change or addition you need to make to your policy, determine whether you need to make a basic or an advanced endorsement.

 

2. Contact your insurer: Most insurance providers have an online endorsement process that you can access through their website or app. If unsure, you can call the customer helpline or visit the nearest branch of your insurer to find out more.

 

3. Submit required documents: Endorsements require supporting documents to be submitted as proof. Check with your insurance provider about specific documentation needed for your endorsements. For example, if you are including a new accessory in your insurance coverage, the receipt must be submitted.

 

4. Fill out the endorsement form: Your insurance provider will require you to complete an official form detailing all the changes you want in your policy. Ensure that you fill it out with accurate information and double-check it.

 

5. Receive updated policy: Once submitted and processed, you will receive either a physical or a digital copy of the updated policy. Review the updated policy and pay any additional premium if needed. Keep the updated policy papers safe.

 

It is important to select an insurance provider that offers a seamless endorsement process and efficient claims processing. Shriram General Insurance provides a cost-effective range of Car Insurance Policies and Add-Ons, allowing you to personalise your policy according to your specific needs. Our fast claims process, minimal documentation, and excellent customer service ensure that you can protect what matters most without any hassle.

 

Impact of Endorsements on Insurance Premium

Not all insurance policy endorsements result in a revised premium; the change largely depends on the type of endorsement made.

 

Including a high-value accessory or newly changed car interiors within the coverage of an insurance policy will increase your premium. When you remove an unnecessary aspect of your coverage or reduce your sum insured, your premium will be lower. Changes like correcting personal information do not impact the premium at all.

 

Any modifications or changes to your vehicle must be notified to the insurance provider through an endorsement as soon as possible to avoid any confusion while making claims.

 

Summing Up

Car Insurance endorsements are essential for personalising, updating, and maintaining your policy. Keeping your policy up-to-date with your changing needs and circumstances is crucial so that in case of an accident, your claims process is smoother and your policy is effective. We hope this blog has given you adequate insight into how endorsements in Car Insurance work!

 

FAQs

1. What is an insurance policy endorsement?

An insurance policy endorsement is a formal amendment or an addition to your existing policy. With endorsements, policyholders can modify their coverage according to the changes in their lives or needs.

 

2. How can a Car Insurance endorsement affect my premium?

If your endorsement is advanced, such as increasing your policy coverage limits or including an add-on like Zero Depreciation, your premium will increase. If you remove any unnecessary aspects or downgrade your policy, your premium will decrease.

 

3. How often can I make insurance policy endorsements?

As a good practice, it is recommended that a policyholder does not make more than two endorsements a year. Frequent changes in your policy can cause a lot of confusion, and your insurance provider can refuse to settle a claim if any change or modification has not been endorsed.

 

4. How long does it take for an insurance policy endorsement to be processed?

The processing time for an insurance policy endorsement depends on the type of endorsement and the insurance provider. Smaller changes, like changing a name, usually take less time to process than updates like adding new coverage. 

 

5. Is there a fee for making an endorsement?

Some insurance providers charge a small fee for processing endorsements. Before you make an endorsement, it is a good idea to check with your insurance provider for specific details.