Things to know about endorsement policies for car insurance
If we compare 2018 with an unknown year in the rock age, there has been an enormous difference in everything related to a human being. It was the same human being then and even now but the food, attire, dwelling, tools and technology, has seen a massive correction and this has never stopped by the way. We never know how we will be after another millennium despite being the same human. Not settling down for the existing one and the human’s zeal to explore for betterment has been the mantra behind this constant “change”. It applies to every aspect of life and why not for insurance? Yes! You can change your insurance policy too!! Are you not happy with the existing norms of your policy? Is your friend having a particular feature in his insurance policy which excites you? Never mind!! Your insurer would treat it as a privilege to include or change that concept for you in your policy. The cutthroat competition among the insurance companies has made it possible to change your policy norms as per your choice. Many people welcome this change with extreme warmth as this encourages many to get insured. After all, the change is for the betterment of people!! The specific jargon for this ‘change’ in insurance industry is ‘endorsement’!
Endorsement Meaning in Insurance:
An endorsement is fundamentally the change in an insurance policy made by the insurance company on the request or order of the policy holder. It can be considered as an extension to the existing policy. You will find new changes in a policy when there is an endorsement. The endorsement can comprise of coverage changes, vehicle changes, driver changes or many more. Let’s focus on knowing things about endorsement policies for car insurance.
How Frequently Can You Request for an Endorsement?
In fact, it is good for the insurers either to call an endorsement as they always confront a threat of ‘porting’! If a particular feature is not included in a policy, the policy holder may port his policy to another insurance company. Any insurer to that matter would not want to leave their clients. So, they find it better to incorporate the change the customer wants in the policy rather than making them switch. To meet their expectations, insurance companies create endorsements and offer them to their clients. There is no specific thumb rule in making an endorsement in a policy. But on an average, it is usually once in a year at the least. Some people mess up their policies by requesting frequent endorsements which can lead to blunders at times which in turn cost you dearly.
Types of Endorsement in Insurance:
An endorsement in your insurance policy is made owing to multiple reasons and the few things to know about endorsement policies for car insurance are specified below:
- Change in the policy holder’s address
- Changes in policy holder’s name
- Change in policy holder’s email id or mobile number or both
- Change in the car’s registration number
- Change in the car’s engine number
- Change in the car’s chassis number
- Change in the car’s model and built
- Change in the car’s fuel type
- Change in the car’s variant
- Adding or increasing the voluntary deductible
- Changes in premium mismatches
- Change in the car’s Insured Declared Value (IDV)
- Corrections in the No Claim Bonus (NCB)
- Changes about the nominee
- Transfer of ownership of the car
- Addition or deletion of zero debt
- Addition or deletion of electrical accessories
- Converting the car to that of an LPG/CNG model
- Change in the no. of seats in the car
- Change in the car’s cubic capacity
- Change in the car’s manufacturing year
How to make an endorsement:
Many endorsements done of late in the insurance industry in various scenarios prove that this process has become extremely easier from the policy holders’ perspective. The foremost thing to know about endorsement policies for car insurance is that it is as simple as communicating the insurance company through a letter or an email requesting the necessary change. The insurance company will then incorporate the required changes post analyzing the possibilities and the authenticity of the changes that have been applied for. However, with all these changes being applicable, the policy holders should realize that a change may cost the policy dearer as the premium can go up depending on the changes you required for. Usually, the cubic capacity changes, the changes in built etc. can attract a hike in your premium amounts.
Insurance experts suggest the policy holders to request for necessary endorsements in their policies, however, frequent changes would create a chaotic situation, and this can affect the claiming process adversely. The vital changes that are new in the insurance industry can be incorporated but don’t request for every small change that can change the format of your insurance policy on the whole. It is equally important to inform the insurance company about the newly made changes in your car as it should not affect the coverage amount at the time of a claim processing. Hope this article would enlighten the readers on things to know about endorsement policies for car insurance and help them in bettering their lives.