Endorsement 27: Coverage for Damage to Vehicles You Don't Own

This advertorial is brought to you by Groupement des assureurs automobiles (GAA)

Do you sometimes borrow or rent a vehicle? You can be insured!

• Also: When your vehicle is a total loss : understanding endorsement 43

You can add additional coverage, known as an endorsement, to your auto insurance policy that will cover you for damage to a borrowed or rented vehicle should you have an at-fault accident. It’s known as Endorsement 27 - Civil liability resulting from damage caused to vehicles of which named insured is not owner.

This endorsement can come in handy:

• When you rent a vehicle while on holiday, as it can cover the rental vehicle, often at a lower cost. In this case, you won’t have to take the rental company’s Collision Damage Waiver.
• When you borrow your parents’ or a friend’s vehicle.
• When you’re given a temporary replacement vehicle (courtesy car) while your vehicle is in for maintenance or repairs.

What you need to know about Endorsement 27:

• This endorsement covers damage to a vehicle you do not own, only if you have an at-fault accident (a not at-fault accident will be covered under the vehicle owner’s insurance).
• The coverage and deductible can differ from those under your insurance policy. For example, you can have All Perils coverage with a $750 deductible under your insurance policy, and have All Perils other than Collision or Upset coverage with a $500 deductible under the endorsement.
• The endorsement includes a coverage limit by loss (what the vehicle owner wants to claim for the loss). B. If you plan to borrow or rent a sports car, or a luxury vehicle, make sure the limit is sufficient to cover the vehicle’s value.
• The endorsement also establishes the type of vehicle covered (auto, RV, motorcycle, etc.)
• It’s up to you whether or not to use your Endorsement 27 to cover a loss. You’re not obliged to do so. If you choose not to use it, the owner’s insurance policy can cover the loss, provided he has the required coverage.

Questions About Auto Insurance?

Go to gaa.qc.ca and InfoInsurance.ca. You can also contact the Insurance Information Centre 514 288-4321 (Montreal region) or 1 877 288-4321 (elsewhere in Quebec).