Auto Insurance Endorsement

Last Updated on March 22, 2018 by Jason Mason

There will come a point that your auto insurance needs or your financial situation may change which will force or require you to make changes on your existing auto insurance policy. And this is where auto insurance endorsement comes in. Basically, an auto insurance endorsement refers to the changes that you may want to do on your existing auto insurance coverage policy. These changes can be to expand it or to restrict coverage with the former giving you more benefits but getting you higher premium rates and the latter, excluding other benefits but giving you a more affordable rate. Below are the instances where auto insurance endorsements might be a good solution.

Major Change in Lifestyle

In case your vehicle was totaled and you are still paying the car loan, there is the option to change the policy to include gap coverage. It gives you the privilege to pay the difference between the loan amount and the actual cash value of the car after the accident, even if the said vehicle’s current market value is lower than the price it was initially bought at. This is also applicable if you purchased a new vehicle.


There is also an option for you to include rental cars as part of your coverage in case you will be traveling and will not be bringing your own vehicle. This gives you the opportunity to make claims in case you encounter an accident while using a rental car.

Financial Difficulties

This works especially if for example, you encountered a pay cut or you got laid off from your job and have a difficult time paying off the remaining balance on your car loan. This allows you to decrease the monthly premium and then allow you to modify it again at a later time when you are able to get back on your feet. On the other hand, if you have been paying for a low premium and want to get better coverage, then you can upgrade your coverage policy. Once you have made an auto insurance endorsement, you will eventually receive a new declaration page which includes the details of the changes. This includes what benefits you have starting from the period of the change and the benefits you no longer have. Auto insurance endorsement can be necessary in case there is a major change in your lifestyle and you need to upgrade or downgrade your policy.