How do Car Insurance Endorsements Work?
Car insurance endorsements are incorporated within an existing policy by issuing an Endorsement Certificate. You will likely get a car insurance endorsement in two scenarios:
When you need an upgrade in your policy.
When you have done some changes to your car that accounts for a change in your car insurance plan.
If you are a policyholder, it is important to update your existing insurance plan with car insurance endorsements as and when you make any changes to your vehicle. Otherwise, it becomes risky for you as there is a possibility of getting the insurance claim rejected because of conflicting information.
Types of Endorsements in Motor Insurance
There are two types of endorsements in motor insurance:
Modifications in existing car insurance policy terms and/or coverage
Any changes in your existing policy term or coverage, like changes in your personal details like misspelt name or address, change in contact number, etc., will be made as car insurance endorsements and will replace the original policy document issued to you while purchasing the insurance plan.
Additions to the existing car insurance policy terms and/or coverage
Such endorsements are made in case any additional coverage or restriction is added to your original car insurance policy. Here, only the specific terms are added to your policy, without affecting the entire policy wordings. In other words, such endorsements act as an add-on to your existing policy, and you must keep these endorsement certificates along with the original policy document.
How to Apply for Car Insurance Endorsements
Making a change to your existing car insurance policy using endorsements is an easy task. All you need to do is follow the steps given below for an auto endorsement:
Step 1: Reach out to your insurer and provide the details about the motor insurance endorsements that you want to add to your existing car insurance plan.
Step 2: You will then have to submit proof of the changes that you have made to your car or proof of the changes that you want to add.
Step 3: If the changes are about the details of the policyholder, the ownership of the car or nominee details for the policy, you may have to submit proof of sale or other such supporting documents.
Step 4: The insurer will then verify the authenticity of these changes and incorporate them into your existing policy.
Step 5: You will be issued an Endorsement Certificate that cites the requested changes to your existing policy.
Note: Many insurance providers also have an option to apply for motor insurance endorsements online.
Cost of Making Car Insurance Endorsements
Car insurance endorsements can increase or decrease your overall premium based on the nature of changes. For example, if you make any changes to your car to enhance its aesthetic appeal, it can increase your car’s Insured Declared Value, thereby increasing your car insurance premium. On the other hand, if you install anti-theft devices in your car, such endorsements can reduce your car insurance premium.
How Often Can You Request an Endorsement?
The frequency of car insurance endorsements depends on the nature of endorsements, the policy’s terms and conditions, and the insurer’s rules and regulations. Most car insurance policyholders think that it is okay to make multiple endorsements in their car insurance plan during the policy tenure. However, it is advisable to not make more than one or two endorsements in a year as frequent changes in your insurance plan can cause confusion while updating policy records, which can lead to delays during insurance claims.
Types of Changes That Call for Car Insurance Endorsements
Details ranging from change in the name of the policyholder, to change in ownership of the vehicle or changes to the vehicle itself require changes to be made to your car insurance policy in the form of endorsements. Changes to the vehicle may include a change in the model or make of your car, your vehicle’s fuel type, seating capacity, etc. Moreover, in case you need to upgrade or downgrade your policy, it can be done through car insurance endorsements. Any changes in your contact information can also be registered under car insurance endorsements.
How Long is an Insurance Endorsement Valid?
Since any changes made in your car insurance policy as endorsements become a part of your policy contract, they remain valid throughout the policy tenor. During car insurance policy renewal, these endorsements will be activated again if you do not want to make any further changes to these endorsements. However, this rule is not applicable to certain endorsements that are specified to be valid only till a specific period as per your insurance plan. Hence, ensure that you read all the terms and conditions carefully before signing your insurance contract or making a car insurance endorsement.
Now that you know the importance of updating your car insurance policy using endorsements, you must make these changes on time. This will be helpful at the time of settling claims, as the entire process will also be more seamless and transparent for all parties concerned if your documents are updated. With car insurance plans available on Bajaj MARKETS, you can bring an additional level of transparency to the process by completing the entire process online and enjoy benefits like cashless garages, quick claim settlements, and fast renewals.