Borrowing or renting a vehicle? Think about Endorsement 27
Adding coverage to your policy like the one offered under Endorsement 27 – “Damage caused to vehicles of which named insured is not owner”, can be beneficial. With this endorsement, you won’t need to purchase the insurance sold by the company for a short-term rental vehicle.
This endorsement can come in handy:
- When you borrow your parents’ or a friend’s vehicle
- When you rent a vehicle while on holiday. If you have an accident, the endorsement can cover damage to the rental vehicle, often at a lower cost. In this case, you won’t need to take the rental company’s Collision Damage Waiver.
- When you’re given a “temporary replacement vehicle” (courtesy car) while your vehicle is in for maintenance or repairs.
Good to know
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.
Check the coverage that is included in this endorsement carefully and well as the amount of the deductible. They may differ from those under your insurance policy.
For example, your insurance policy may have All Perils coverage, while Endorsement 27 only covers you for Collision or Upset.
And, your All Perils policy deductible could be $750, while your endorsement deductible is $500.
The endorsement includes a coverage limit that you can claim in case of loss. If you 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, trailer, motorcycle, etc.). Make sure it corresponds to your situation.
Who to claim from?
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 loss can be covered under the car owner’s or car rental’s insurance policy, provided they have the required coverage.