What are vehicle insurance coverage endorsements? Under what circumstances you would need an endorsement to a policy?
Car insurance policies are usually sold as popular packages. Endorsements are a way of customizing a standard policy. They are called “riders” as well. They are additional arrangements between you and the insurance company to have a special coverage or condition to be noted on the policy documents. So, they are a good way of making sure you are covered and your insurer knows about this particular issue.
For example, other drivers who are living in the same household with you would normally be considered insured under your policy. Companies would take their details and include them on premium calculations. This may result in high premiums (especially if that person has a bad driving records) for you for someone who is unlikely to drive your vehicle. In this case, you can struck a deal with the insurance company to exclude this particular driver from your policy and keep your premiums low. This would be dealt with an endorsement on your policy.
Another example is that you have done some modification to your automobile and not only you want the insurer to know about them but also you want to see that it is noted on the policy. You talk to your insurer, agree on an additional premium and get your policy endorsed to include the facts about the modification on the insured auto.
It is important that the insurer and policyholder are on the same page in terms of the facts of coverage. This would allow the insurer charge a fair premium and give policyholder a peace of mind that everything is out in the open. When there is a claim the company cannot back down or find a reason not to pay. It is a deal that works for both parties.