What are Car Insurance Endorsements
While it is important to drive a car with valid insurance, it is more important that the policy contains up-to-date car details. There could be times when changes need to be made in the car insurance policy, which are considered endorsements in the policy.
Sometimes, car insurance endorsements can be as simple as the correction of misprints in your car policy document. Continue reading to learn more about endorsements in car policies.
Car Insurance Endorsement – Meaning
A car insurance endorsement is a request that the policyholder makes for amendments or changes in the existing car policy. Such endorsements serve as a systematic form of updating your car policy.
In some cases, endorsements can increase your car insurance cost. This is called an endorsement of premium in car insurance. For example, when changes are made in the vehicle’s cubic capacity, a car policy endorsement may lead to a change in the comprehensive or third-party insurance price.
Car Insurance Endorsements – Types
Financial Endorsements
A financial endorsement in car insurance is when additions made to the vehicle or policy coverage affect the car insurance insurance policy premiums, i.e., the change can increase or decrease your policy premiums.
Examples of this type of endorsement include:
- Adding a CNG Kit
- Transferring car ownership
- Making changes in car fuel type
Non-Financial Endorsements
Non-financial endorsements are cases where car insurance endorsement charges are not levied. This endorsement type mostly involves making information-related changes in your policy.
Examples of this type of endorsement include:
- Correcting the spelling of your name
- Changing your email address or phone number
Process for Making a Car Insurance Endorsement
To make an auto insurance endorsement, you have to contact your insurance company and inform them of the changes you wish to make to your policy.
Next, you submit the endorsement request by either sending an email to your insurer or connecting with them online through their website.
Following this, you have to submit the required documents. For example, if you want to change your contact number and email address in your car policy, you will need to provide documents such as Aadhaar card, Voter ID, etc.
How Frequently Can You Make a Car Insurance Endorsement?
You can choose to make a car policy endorsement when –
- Purchasing a new car policy
- At the time of renewing your expired policy
- During the policy term
Avoid applying for too many auto insurance endorsements, as more changes lead to a higher chance of mistakes in the policy. This can prove unfavourable, especially when raising a car insurance claim.
If you must make changes to your policy, it’s recommended that you make no more than 1 or 2 endorsements per year.
Conclusion
Any mistakes in the policy can lead to your claim being rejected, which is why you should always inform your insurer about any car modifications or errors in your policy as soon as possible. If you are not sure whether or not the change that you have made in your car requires a car insurance endorsement request, you should contact your insurer to confirm the same.
