How to Improve Your Auto Insurance Coverage

Did you know that in addition to one-way or two-way coverage, several forms of additional coverage can be added to your auto insurance policy? Frequently misunderstood and very often disregarded, such additional coverage is interesting to consider especially if you are looking to have total peace of mind when you’re behind the wheel. Our broker will describe endorsements that can be added, including travel expenses, accident benefits insurance, and roadside assistance.

1. Endorsement 20A—Travel costs

Why? Endorsement 20A can be used to obtain a rental car in the event of a claim. Following a loss covered by the policy, the insurer will cover the travel costs of the insured. Generally, this allows the insured to lease a temporary replacement vehicle. Besides a replacement vehicle, the insurer may also reimburse other travel costs, including public transportation expenses or taxicab fares.

Details: For the coverage to be added to the policy or to be eligible, the insured must have full coverage that includes Section B, which is divided into four parts:

• Section B1, which involves “all perils” coverage; OR
• Section B2, which protects you against perils of collision and upset; AND
• Section B3, which protects you in the event of accidents that do not involve collision or upset; OR
• Section B4, which involves coverage against specified perils.

Note that certain insurers do not require the insured to hold Section B1 or B2 coverage to be eligible. If you have any questions about this, contact your Lareau broker.

Limits: This coverage has limits. They are all found in the declarations section of the insurance policy. It is also important to know that indemnification usually has two limits: an amount allocated to the claimant for each day a vehicle is rented and a total limit per loss that cannot be surpassed. As these limits may vary based on the insurer, this must all be confirmed with your broker.

2. Endorsement 27—Civil liability resulting from damage caused to vehicles of which the named insured is not the owner

Why? Endorsement 27 is used for insureds who wish to be covered when using the vehicles of others—at least in the same way in which they are insured for their own vehicle.

Details: Here are some clarifications about this coverage in the event of a claim.

• For the vast majority of insurers, the vehicle being rented or borrowed must be a passenger vehicle, so motorcycles, trailers, or any other vehicles will not be covered by this endorsement.
• The owner of the vehicle in question cannot live at the same address as the insured who is making the claim. It would therefore be impossible for insureds to make a claim for damages caused to the vehicle of their spouse or parent if both parties live at the same address. The same limitation applies to vehicles borrowed from the insured’s employer or the employer of someone living at the same address as the insured.
• The insured must generally hold Section B coverage to be able to benefit from the coverage in question (in the same manner as that for Q.E.F. 20A, which was explained above).

Limits: The insurer will only intervene if the main policy does not cover the claim. In other words, this means that if the owner of the vehicle that you are driving only has partial coverage, you can ask your insurer to compensate the owner for the damage that is not covered by the owner’s insurance.

Once again, the same conditions as your policy and a limit also apply. It will be listed in the declarations section of your insurance policy. It is therefore important to verify whether this limit is the right amount for you.

3. Endorsement 34—Accident benefits insurance

Why? Endorsement 34 provides compensation in the event of bodily injury to one of the insureds when an accident related to an automobile occurs. The coverage will compensate the named insured, said person’s spouse, as well as any of their dependent children following bodily injury resulting solely from an accident.

Details: This coverage will be added to the civil liability coverage and does not require Section B coverage in order to be available to the insured.

Limits: Once again, the limit of this coverage can be adjusted to meet the needs of the insureds.

4. Other coverage of interest that can be added

Other coverage may also be available, including the following types:

• Roadside assistance costs. This coverage provides reimbursement of certain expenses such as towing and gas delivery. In addition to being useful, this coverage is also not very costly.
• Accident forgiveness. This coverage allows insureds to keep their preferred rate after a first at-fault accident.
• Suspension of coverage during vehicle storage. This endorsement allows owners of vehicles that are stored during the winter to suspend their coverage related to driving the vehicle and, in doing so, to obtain a refund of part of their insurance premium.
• Replacement cost. This subject was covered in its own blog post.

In short, no matter which types of coverage seem interesting to you, you can speak to your Lareau broker to learn more about the available options. The ultimate goal of these types of coverage is to provide you with complete peace of mind when you’re on the road. Contact your Lareau broker.