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HomeCar Insurance ResourcesWhat is a car insurance endorsement in Ontario

In the context of Canadian car insurance, an endorsement refers to any change or addition made to the standard auto insurance policy. Endorsements can customize or enhance the coverage to better suit the individual needs of the policyholder. It’s a way for policyholders to tailor their coverage, either by adding protection, limiting coverage in certain areas, or making administrative changes.

Some common endorsements in Canada include:

  1. Accident Waiver/Forgiveness: Prevents your insurance rate from increasing as a result of your first at-fault accident.
  2. Loss of Use: Provides a rental vehicle or reimbursement for transportation costs (like taxis or public transit) if your car is undrivable due to a claim.
  3. Family Protection: Offers extra protection if you’re injured or killed by an underinsured or uninsured motorist.
  4. Limited Waiver of Depreciation: If your new vehicle is written off in a claim, you’ll get a payout for the full purchase price rather than the depreciated value.
  5. Rented or Borrowed Vehicles: Extends your auto insurance to vehicles you rent or borrow.
  6. Removing Depreciation Deduction: For certain claims, the insurer will not factor in depreciation when settling your claim.
  7. Changing Deductibles: Adjusts the amount you pay out of pocket in the event of a claim.
  8. Business Use: Provides coverage if you use your vehicle for business purposes, which is not typically covered under a personal auto policy.

When you make changes to your car insurance policy and add an endorsement, it will typically be outlined on a separate page in your policy documents called the “Endorsement Page.” This page will detail the specific changes made to the standard policy.

What is an example of a car insurance endorsement?

Let’s look at an example of a car insurance endorsement specifically in the Canadian context.

Background: Sarah has a standard auto insurance policy in Ontario. Her policy covers third-party liability, collision damage, and comprehensive risks like theft and vandalism. The deductible for her collision coverage is set at $1,000, meaning she has to pay the first $1,000 of any collision repair, and the insurance company covers the rest.

Situation: Sarah starts a new job in a location where she must park her car on the street instead of her usual secure garage. Given the change in parking conditions, she’s concerned about potential damage to her car from other drivers, especially since she’d have to pay the first $1,000 for any collision repairs.

Endorsement: To alleviate her concerns, Sarah decides to reduce her collision deductible from $1,000 to $500. This means that if she gets into a collision, she would only pay the first $500, and her insurance would cover the remaining costs. She contacts her insurance provider and requests this change.

The insurance company agrees to her request and issues an endorsement to her policy. This endorsement modifies her original policy to reflect the new deductible amount. The change will be noted on a separate page in her policy documents, often called the “Endorsement Page,” which will detail the specific change made. As a result of this endorsement, Sarah’s premium might increase slightly since she has chosen to bear less financial risk by reducing her deductible.

This is a simple example of how an endorsement works. In essence, it’s a documented change or addition to the existing policy, tailored to the policyholder’s specific needs or circumstances.

What is the 43 endorsement in Ontario?

In Ontario’s auto insurance terminology, the “43 endorsement” refers to the Limited Waiver of Depreciation endorsement. This particular endorsement is often sought by individuals who purchase brand-new vehicles.

Here’s a breakdown:

Standard Practice: When a car is damaged in an accident and is considered a total loss (often referred to as “written off”), the insurance payout is typically based on the car’s actual cash value (ACV) at the time of the loss. Since vehicles depreciate over time, the ACV can be significantly less than what the car was originally worth or what the owner might still owe on a car loan.

43 Endorsement: If a policyholder has the 43 endorsement (Limited Waiver of Depreciation) on their policy, and their brand-new car is written off within a specified period after purchase (commonly 24 or 36 months, but the period can vary by insurer), the insurer will pay out the original purchase price of the vehicle, rather than its depreciated value.

For example, if Sarah bought a brand-new car for $30,000 and added the 43 endorsement to her policy, and her car was then written off in an accident 18 months later, she would receive the full $30,000 she initially paid (minus any deductible), rather than the depreciated value which might be considerably less.

The 43 endorsement can provide peace of mind for new car owners, especially if they’ve financed their purchase, ensuring that they’re not left with a financial gap between what they owe and what the insurance pays out. However, it’s essential to note that there might be specific conditions and timeframes associated with this endorsement, so reading the policy details and consulting with an insurance broker or agent is crucial.

What is the 39 insurance endorsement?

In the context of Ontario auto insurance, the “39 endorsement” refers to the Accident Rating Waiver endorsement.

Here’s a brief overview:

Standard Practice: If a driver is at fault in a car accident, their insurance premiums typically increase upon renewal, reflecting their higher risk profile after the at-fault accident.

39 Endorsement (Accident Rating Waiver): If a policyholder has the 39 endorsement on their policy and they are involved in their first at-fault accident, the insurance company will “waive” or overlook the accident when determining their premiums, meaning their rates won’t increase solely due to that accident.

This endorsement is especially valuable for drivers who have maintained a clean driving record for an extended period. It acts as a kind of “safety net”, preventing premium increases from a single mistake. However, it’s important to note:

  1. The waiver typically applies to the first at-fault accident only.
  2. There may be conditions attached to this endorsement, such as the driver needing to have a clean record for a specific number of years prior.
  3. The endorsement does not affect how the insurance company determines fault in the accident.

Drivers interested in this endorsement should discuss it with their insurance broker or agent to understand the specific terms, conditions, and costs associated with adding it to their policy.

Car insurance endorsement codes

List of Requirements

In Canada, especially in provinces like Ontario, auto insurance endorsement codes are used to denote specific modifications or additions to a standard auto insurance policy. Each endorsement code corresponds to a specific change or set of changes made to the policy. Here are some common endorsement codes used in Ontario (and similarly in other provinces):

  1. OPCF 20: Loss of Vehicle Use – Provides a rental vehicle or covers transportation costs if the insured’s vehicle is undrivable due to an insured loss.
  2. OPCF 27: Liability for Damage to Non-Owned Automobile(s) – Extends liability and physical damage coverages to vehicles you rent or borrow.
  3. OPCF 43: Limited Waiver of Depreciation – If a new vehicle is written off within a certain period after purchase, the insurer will pay out the original purchase price, not the depreciated value.
  4. OPCF 39: Accident Rating Waiver – Prevents insurance premiums from increasing after the policyholder’s first at-fault accident.
  5. OPCF 23A/B: Leased Vehicle Protection – Covers the gap between the actual cash value of a leased vehicle and the outstanding amount on the lease if the car is written off.
  6. OPCF 44R: Family Protection – Offers additional coverage if the policyholder or eligible family members are injured or killed by an uninsured, underinsured, or unidentified driver.
  7. OPCF 3: Limited Coverage – Specified Perils – Covers the vehicle for specified perils only (e.g., fire or theft) rather than the broader “all perils” coverage.
  8. OPCF 5: Permission to Rent or Lease – When a vehicle is leased, this endorsement confirms the leasing company as the lessor.
  9. OPCF 6: Permission to Carry Passengers for Compensation – Used for vehicles that might occasionally transport people for payment, like carpooling. Not applicable for regular taxi services.
  10. OPCF 7: Reduction in Coverage – Reduces policy coverages in certain areas specified by the policyholder, which may lead to a reduced premium.
  11. OPCF 8: Lienholder Protection – Protects the interests of a lienholder (e.g., a bank that gave a car loan).
  12. OPCF 9: Additional Named Insured – Names an additional person or organization as a primary policyholder.
  13. OPCF 19: Limitation of Amount – Limits the maximum payout amount for specified coverages, typically below the actual cash value.
  14. OPCF 21A/B: Accidental Death and Dismemberment – Provides specific payouts if the policyholder (or other named individuals) suffers accidental death or certain types of injuries in an auto accident.
  15. OPCF 28A: Excluded Driver – Excludes a specific driver from coverage on a particular vehicle, often resulting in a reduced premium if the excluded driver has a poor driving record. If the excluded driver operates the vehicle and is involved in an incident, there’s no coverage.
  16. OPCF 29: Driving Record Protector – Similar to OPCF 39 but can be more comprehensive, protecting against rate increases from multiple at-fault accidents.
  17. OPCF 32: Recreational Vehicle Coverage – Adjusts the policy to properly cover recreational vehicles, which may have different risks and coverages compared to regular vehicles.
  18. OPCF 40: Reinstatement of Coverage Following Suspension – Allows for a seamless transition when coverage is temporarily suspended and then reinstated, without requiring a new policy.
  19. OPCF 2: Specified User – Provides coverage for the named person using the vehicle for specific uses that may not be covered under the standard policy (e.g., regular business use).
  20. OPCF 4: Temporary Substitute Automobile – Extends the same coverages to a vehicle temporarily substituting for the described vehicle which is out of use due to breakdown, repair, servicing, loss, or destruction.
  21. OPCF 10: Change of Vehicle – Covers the newly acquired vehicle between the time of purchase and when the insurer is notified, ensuring there’s no gap in coverage.
  22. OPCF 11: Rapidly Adjusting Premiums Based on Usage or Driving Behaviour – This might be used for telematics-based insurance policies where premiums adjust rapidly based on tracked driving behavior.
  23. OPCF 13: Removing Depreciation Deduction – Ensures that in the event of a loss, depreciation will not be deducted from the value of the vehicle.
  24. OPCF 15: Additional Transportation Replacement – Goes beyond the basic transportation replacement coverage to cover higher-end rental vehicles or greater daily allowances.
  25. OPCF 16: Suspension of Coverage – Temporarily suspends certain coverages on the policy, typically for seasonal vehicles like convertibles or motorcycles.
  26. OPCF 17: Reinstatement of Suspended Coverage – Reinstates coverage after it has been suspended, such as when a seasonal vehicle is put back into use.
  27. OPCF 22: Damage to Owned Automobile(s) Not Rated in This Policy – Provides physical damage coverage to other owned vehicles that are not listed on the policy.
  28. OPCF 24: Temporary Loaned Automobile – Covers a vehicle that has been temporarily loaned to the policyholder by someone other than a vehicle rental agency.
  29. OPCF 25: Liability for Bodily Injury or Damage to Property of Others – Unlisted Driver – Extends the policy’s liability coverage to occasional drivers not listed on the policy.
  30. OPCF 31: Excluding Liability for Named Persons – Specifically excludes certain named persons from liability coverage on the policy.
  31. OPCF 33: Limiting the Amount Paid – Limits the amount payable for specific coverages or situations, potentially reducing the premium.
  32. OPCF 35: Additional Accident Benefits Coverage – Provides increased limits or enhanced accident benefits over what is standard in the policy.
  33. OPCF 34: Accident Benefits Coverage for Named Persons Excluded by an OPCF 28A (Excluded Driver Endorsement) – Restores accident benefits coverage for those named in an OPCF 28A Excluded Driver endorsement.
  34. OPCF 36: Coverage for Named Person Driving Certain Automobiles – Provides coverage for a specific named person while driving particular vehicles.
  35. OPCF 37: Accident Benefits for Carpooling – Adjusts the policy to provide specific accident benefits coverage if the vehicle is involved in a carpooling arrangement.
  36. OPCF 38: Accidental Benefits for Taxi, Public Vehicle, Car Pooling, etc. – Provides specific accident benefits coverages for vehicles used as taxis, public vehicles, or in carpooling.
  37. OPCF 41: Coverage for Transportation Replacement for Commercial Vehicles – Similar to OPCF 20 but specifically designed for commercial vehicles.
  38. OPCF 42: Depreciation Deduction – Deducts a specified amount for depreciation from the actual cash value when settling a claim. This might lower premiums but would result in a lower payout in the event of a claim.
  39. OPCF 44R: Family Protection Coverage – Offers increased limits of protection in situations where the at-fault party has insufficient insurance. It essentially “tops up” the injured party’s underinsured motorist coverage.
  40. OPCF 45: Lease – Provides specific coverage details and protections related to leased vehicles.
  41. OPCF 46: Agreement Not to Rely on SABS Priority of Payment Rules – Relates to the Statutory Accident Benefits Schedule (SABS) and agreements on prioritizing payments.
  42. OPCF 47: Agreement to Provide Insurance as Specified – An agreement that certain coverages will be provided under specific conditions.
  43. OPCF 48: Additional Uninsured Automobile Coverage – Extends or adds to the uninsured motorist coverage of the policy.
  44. OPCF 49: Limitation of Liability for Damage to Non-Owned Automobiles – Limits the insurer’s liability for damage to vehicles not owned by the policyholder but in their possession.
  45. OPCF 50: Waiver of Certain Accident Benefit Coverages – Allows policyholders to waive certain accident benefit coverages in exchange for a reduced premium.
  46. OPCF 51: Reduction in Coverage for Named Persons – This endorsement specifically reduces the coverage for certain named individuals on the policy.
  47. OPCF 52: Borrowed Automobile – Provides specified coverages for automobiles that you might borrow but don’t own.
  48. OPCF 53: Removal and Reinstatement of Specified Coverage – Allows certain coverages to be temporarily removed and then later reinstated without reissuing the entire policy.
  49. OPCF 54: Modified Coverage – Damage to Certain Non-Owned Automobiles in Your Possession – Alters the coverage regarding damage to certain non-owned vehicles that are in the possession of the policyholder.
  50. OPCF 55: Permission to Rent to Others – Modifies the policy to allow the insured vehicle to be rented out to others, a scenario that’s typically not covered under standard personal auto policies.
  51. OPCF 56: Rental to Others of Certain Described Automobiles – Similar to OPCF 55, but it applies to specific vehicles listed in the endorsement.
  52. OPCF 57: Deletion of Civil Liability Coverage Arising from Contamination by Radioactive Material – Excludes any liability coverage related to contamination from radioactive materials.
  53. OPCF 58: Modified Coverage – Damage to Certain Other Automobiles – Adjusts coverage related to damage to certain vehicles not owned by the policyholder.
  54. OPCF 59: Modified Coverage for Certain Trailers and Their Equipment – Specifies coverage changes or provisions for certain trailers and associated equipment.
  55. OPCF 60: Modified Coverage for Certain Trailers When Attached to a Described Automobile – Adjusts coverage for specific trailers when they are attached to a vehicle listed in the policy.
  56. OPCF 61: Modified Coverage for Unlicensed Automobiles – Adjusts coverages for vehicles that are not currently licensed for road use.
  57. OPCF 62: Modified Coverage for Converted Automobiles – Provides specific provisions for vehicles that have been converted (e.g., from gas to electric power).
  58. OPCF 63: Change of Coverage Date – Modifies the effective date of certain coverages.

(OPCF stands for “Ontario Policy Change Form.”)

These are just a few of the endorsement codes available. There are many more, each designed to customize the insurance coverage to better fit the needs and desires of the policyholder. It’s essential to consult with an insurance broker or agent to understand the specific terms, conditions, and potential costs associated with each endorsement.

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