4 important endorsements for car insurance in Ontario

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When it comes to car insurance, you have your basic and mandatory coverage, and then you have your additional and optional coverage. 

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In a variety of situations, insurance endorsements, or policy “add-ons,” can make a big difference to a driver’s policy. Also referred to as a “rider,” an endorsement is an extra form of coverage that you can opt to purchase and tack on to your insurance policy. Depending on your demographic, location, or vehicle needs, taking advantage of certain endorsements can provide a more customized coverage scenario.

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4 important endorsements for car insurance in Ontario Back to video

Here are some endorsements you might find are worth paying extra for if you have car insurance in Ontario.

1. Removing depreciation deduction (OPCF 43)

As soon as you drive a new car off the lot, it starts depreciating in value.  Generally, if your car is damaged beyond repair, a depreciation deduction endorsement will ensure you’re reimbursed for the full purchase price, not the depreciated value. 

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Saying no to this endorsement can leave you without enough money to buy a new vehicle should the need arise. This endorsement makes the most sense for brand new cars where the full value is still quite high. A waiver of depreciation usually lasts from between 24 and 48 months. Unfortunately, the expense to carry this endorsement will increase as the car gets older.

2. Loss of use coverage (OPCF 20)

Should you be stuck without a vehicle during repairs after a collision, this endorsement covers the cost of a rental car if you already have collision coverage , comprehensive coverage , or specified perils coverage.

Most insurance providers will cover the cost of the rental until your car is repaired or your coverage limit has been reached — whichever happens to come first. This endorsement may not cover the cost of extra rental car insurance, though, so be sure to find out upfront. 

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If being without a vehicle will affect your employment or create serious disruption, this may be one endorsement to consider.

3. Liability coverage for damage to non-owned vehicles (OPCF 27)

T his endorsement, which is only valid if you’re driving within Canada or the United States, extends your liability coverage and accident benefits to protect you if you’re held responsible for damage to someone else’s vehicle while it’s in your care. 

This can come in handy if, for instance, you borrow a car from family or friends, or are driving a rental vehicle and get into a collision.

4. Accident forgiveness (OPCF 39)

This endorsement ensures that after your first at-fault claim, your premiums won’t increase when your policy renews. 

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Unfortunately, just because your premiums didn’t rise doesn’t mean the at-fault collision won’t appear on your driving record. That means that should you ever switch providers, you could still face higher rates for having an at-fault claim on your record. 

There are many other endorsements depending on which province you live in, although these tend to be most common. Finding the right riders will depend on what you use your vehicle for (pleasure, business, etc.), whether you have a new or old vehicle, and so on. Talk to your insurance broker for the most comprehensive and up-to-date information.

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