In Quebec, the law requires that motorists possess civil liability insurance of at least $50,000 to cover material damages and personal injuries caused to third parties. To protect themselves, the insured can also choose to cover damages to their own vehicle and add other options referred to as endorsements, amendments, additional protections, or FAQs. But what do these cover? And how do you choose an endorsement that is best suited to your needs?
The Replacement Value Endorsement
This is a protection for a limited period specified in the contract and is intended for owners of new vehicles. In case of theft or total loss, if the vehicle is a total loss, it is replaced with a new vehicle with the same features. This is a useful amendment, given that vehicles lose 20 to 25% of their value the year following their initial release.
The Replacement Insurance Endorsement
Similar to the replacement value amendment, the replacement insurance amendment protects against the depreciation of the vehicle, with several important differences:
- It can be offered by the damage insurance representative or the car dealership;
- It can be purchased at any time, unlike the replacement value amendment, which must be taken out within three months of purchasing the vehicle;
- It is accompanied by a fixed premium proportional to the value of the vehicle, while the replacement value amendment has a premium that may increase, often significantly after two years;
- It may last from one to eight years, as opposed to the four or five years maximum for the replacement value amendment.
This amendment is particularly suitable for new and used passenger vehicles, snowmobiles, and high-end vehicle models not covered by the replacement value amendment.
The Loss of Use of the Vehicle Endorsement
For an few extra dollars, this amendment covers the costs of vehicle rentals, public transit, or taxis when the vehicle can’t be used – that is, between the accident and the time when the vehicle is recovered.
In the case of theft, this amendment supports the costs of renting a vehicle.
The Protection for Short-Term Leases or Borrowed Vehicles Endorsement
This amendment covers damages caused to vehicles rented or borrowed for less than one year in Canada or the United States, and covers everything from trailers to cars. Adding this amendment often prevents you from having to take out the insurance offered by the rental company. This amendment is essential if you’re borrowing a vehicle from an owner who isn’t covered for collisions or payment.
The Personal Injury Insurance Endorsement
For a minimal extra premium, this amendment covers personal injuries suffered by the owner of the vehicle, their spouse, and their children. It pays a benefit in the event of death, dismemberment, total disability, or medical fees.
These very useful amendments are the most common, but there are other, less common ones that are appropriate for travel or vehicle storage, for example. Adding amendments lets you be well protected for just a few dollars more; it would be a shame to deprive yourself of them.
