Sometimes your car insurance policy doesn’t provide as much coverage as you’d expect, or there’s certain coverage you don’t want. In either case, you can get an endorsement or add-on that increases or reduces the amount of coverage you have.
The names of these vary depending on where you live. They’re known as Ontario Policy Change Forms (OPCF) in Ontario or Standard Endorsement Forms (SEF) in Alberta and other provinces.
These are some of the most common OPCFs you may want to pay extra for:
This endorsement will give you coverage if you’re in a collision or your vehicle is stolen, and you need an alternate method of transportation. If you’re in a collision and it will take some time for your car to be repaired, you may need to take a taxi or rent a car during that time. Those additional transportation costs can add up quickly. There will usually be a limit on how much coverage this endorsement provides. For example, your policy may state you get a rental car for up to 30 days.
With this endorsement, you’ll receive coverage if you damage a borrowed vehicle — whether it belongs to a friend, a parent, or it’s a rental. The coverage limit is usually around $25,000 to $50,000. One reason to get this endorsement is you don’t need to buy the insurance offered by the rental car company.
This endorsement will protect your premium when you have your first at-fault collision. That means your premium won’t rise when you make a claim. However, your insurance rate could increase if you decide to switch to a different insurance provider.
The moment you drive a new vehicle off the lot, it starts to depreciate. If you get into a collision and your vehicle is totalled or stolen, typically, your insurance company will deduct the depreciation value of your vehicle from the book value when you make a claim. But with this endorsement, the insurance provider won’t deduct the depreciation for a certain amount of time (usually two to five years).
This coverage is for new vehicles with fewer than 5,000 kilometres. If your vehicle is stolen or totalled, you’ll get what you paid for the vehicle instead of the depreciated value — which could be a lot less than your outstanding car loan.
When you’re in a serious collision, you don’t know if the other driver has adequate coverage until after it occurs. This endorsement gives the at-fault driver the same amount of coverage as you, even if they don’t have insurance, have less insurance, or can’t be identified (which would be the case if it were a hit-and-run driver). The OPCF 44R is particularly useful if you must take time off work and have unexpected medical costs to help with your recovery.
Alberta has SEFs — which are like OPCFs — but with a different name. Here are some of the common endorsements in Alberta:
This reduces the coverage on your vehicle’s glass in return for a lower premium. It will typically exclude the front windshield from damage from rocks or other debris. In most cases, the reason to get this endorsement is that the cost to replace glass is lower than the deductible.
With this endorsement, you receive coverage up to a certain value. This is often used with antique and classic vehicles where the depreciated value may be much lower than its actual value. An appraisal typically determines the amount.
Like OPCF 20, you’ll receive a reimbursement for taxis or a rental if your vehicle is damaged and unusable. There’s typically a daily and overall monetary limit.
Like OPCF 27, this endorsement gives you the same coverage you currently have on a vehicle you don’t own. For example, it can be a rental, but only in Canada or the United States.
You’ll receive a specified amount of money to pay for towing and other emergency services if your vehicle is disabled, which can come in handy if you don’t belong to a roadside assistance program.
Like OPCF 39, this endorsement will ensure that your premium won’t rise after your first at-fault collision. But again, the at-fault collision will still appear on your driving record, and because you can’t take this endorsement with you from company to company, it means you may face a higher rate if you take your policy elsewhere.
This endorsement is like OPCF 43. It waives the depreciation on the replacement or repair of a new vehicle and usually lasts for 24 to 30 months, depending on the insurance provider.
Like OPCF 44R, this endorsement provides protection if you and your family are injured in a collision where you’re partially at fault, the other driver is at fault, or it’s a hit-and-run.
Deciding whether to add an endorsement to your car insurance in Ontario depends on your coverage needs. If you are uncertain, have a conversation with your broker and list your primary concerns.
An endorsement could protect the total value of your new vehicle or your premium if you are in a collision. In Alberta, drivers can also add optional auto insurance coverage to help cover the costs of towing and emergency services.