5 min read
Are you familiar with the term Endorsement in Car Insurance? Do you know what is the meaning of Endorsements in terms of insurance? If the answer is NO, read on know everything about it.
Insurance Endorsements come into picture when there is any issue in your car insurance policy, such as spelling mistake in your name, or any update required in your address/mobile number etc., in your policy. Also, for moving your policy from the present insurance provider to a new one, you need to make endorsement with your current policy provider.
Endorsements are the changes that you would like to make in your vehicle insurance policy. For instance, it can be a change you want to incorporate in the policy or an addition you want to make in your policy. These are also called Riders and they allow you to add, change or remove any clause under your car insurance policy.
You would need an endorsement to increase your coverage limit, to reduce some amount from the total premium, or for any other changes like changes in personal details etc. Thus, endorsements allow flexibility, and help you legally connect your amendments to your insurance policy.
You can make an insurance endorsement during the tenure of the policy, at the time of buying a new policy, or while renewing a failed policy. Though many people think that they can make as many endorsements as they want, but the fact is endorsements are allowed only one or two times in a year. Making more than two endorsements is not wise as it can lead to mistakes in your policy record. Moreover, it is also likely to cost you more during the time of making claims for your policy.
There are two types of endorsements:
Here are the changes that can be endorsed in your car insurance policy:
Follow the steps below to carry out the insurance endorsement process:
Once the endorsement of your car insurance is done, it stays valid throughout the validity of the policy period. If you don’t make any further changes in the policy at the time of renewal, these changes will stay activated and valid until the expiry of the policy.
But, there might be some specific endorsements that are valid only for a particular time period as per the policy of the insurance provider. In such case, it is important to read the insurance policy conditions carefully before getting an endorsement done.
It is important for you to clearly understand endorsement meaning in insurance so that you know about the changes made in the policy as per the endorsements. If you receive any information from your insurance company pertaining to any endorsements that you have not applied for, you must contact the company immediately and find out about it. Also, in case you have any objections to any changes or endorsements, make sure it is corrected by the company immediately.
It is better to make any endorsements at the time of renewal of your current policy. Here are some things that you should keep in mind:
Now that you know what is the meaning of Endorsements or riders, you can use the information to make any changes in your car insurance. However, you must note that endorsements can be made for a particular number of times. It is better to get any endorsements done at the time of the renewal of the car insurance policy.
However, reviewing and comparing policies is important before you finally buy or renew a policy. This will help in case you find a better deal from another company, and you want to shift to that policy.
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