Auto Insurance Endorsements Options
Auto insurance is pretty versatile. There are a lot of different options available when it comes to selecting what is right for you and your family’s lifestyle and we’re here to explain what optional coverage you can add.
Endorsements are additions, removals or limits to your coverage. They’re officially called Standard Endorsement Forms, or SEFs. Adding an SEF to your policy can help you customize it to meet your needs.
Drive government automobiles (SEF 3)
This endorsement covers you while using a government vehicle. People operating government-owned vehicles could be vulnerable to personal liability not covered under their regular personal auto insurance.
Permission to rent or lease (SEF 5)
Because a leased vehicle is not technically owned by the driver, this endorsement enables the person leasing or renting the vehicle to insure it as if it were owned.
Permission to carry passengers for compensation (SEF 6A)
This endorsement allows the vehicle to be used for carpool arrangements to and from work only. This endorsement isn’t required for volunteer purposes.
Property damage reimbursement for operation by named person (SEF 8A)
This endorsement restricts specified drivers from your insurance policy. For example, if the person named doesn’t have the best driving record, or is a spouse who rarely drives the vehicle, this endorsement reduces their coverage while they’re operating the vehicle, potentially allowing some premium savings. If the restricted driver gets into an accident while driving the vehicle, they would be responsible to pay for the damages.
This endorsement is used together with SEF 28.
Marine use excluded (SEF 9)
This endorsement excludes coverage for amphibious-type vehicles if they’re being operated, launched from or landed into or on water.
Comprehensive cover – limited glass (SEF 13D)
Excludes coverage for windshield glass, allowing for a reduction in premium.
Deletion hail coverage (SEF 13H)
If a vehicle has existing hail damage at the time it’s being insured, the insurance coverage will not cover future loss or damage due to hail unless the insured supplies evidence that the damage has been repaired.
Limitation of amount (SEF 19)
This endorsement is meant for vintage vehicles that have been appraised and are worth more than listed price. At the time of the loss or damage, the amount paid will be the appraised value as long as documents are provided that the value of the vehicle has been maintained.
Valued automobile(s) (SEF 19A)
Provides greater coverage for vehicles that are 25 years or older, like antique vehicles, that have a higher value than other vehicles in their age group. The vehicle must be appraised every two years and will be insured to the amount valued.
Loss of use (SEF 20)
Provides for a rental vehicle or the use of taxicabs and public transportation to a specified dollar amount in the event your vehicle is damaged and being repaired due to a loss covered by the insurance policy.
Mortgage (SEF 23A)
This endorsement would apply if there’s a lender with an insurable interest on the vehicle. The lender will receive a copy of the policy documents and will be advised if the policy is cancelled or lapsed. If a claim is made on the vehicle, a payment cheque will be written out to both the insured and lender to protect the interest of both parties.
Legal liability for damage to non-owned automobile (SEF 27)
Extends the physical damage coverage and deductible that you have on your personal vehicle to a rental vehicle. This endorsement provides physical damage coverage only, whether the cause was a collision, rollover or other hazards like fire, theft, vandalism, or collision with an animal.
Reduction of coverage as respects operation by named persons (SEF 28)
This endorsement restricts specified drivers from your insurance policy. For example, if the person named doesn’t have the best driving record, or is a spouse who rarely drives the vehicle, this endorsement reduces their liability coverage to a legal minimum of $200,000 while they’re operating the vehicle, potentially allowing some premium savings.
This endorsement is used together with SEF 8A.
Recreation vehicle (SEF 32)
The Alberta Standard Policy has a provision that states that there is no coverage for someone who’s under the legal driving age. Because underage drivers often drive recreational vehicles off-road, this endorsement provides coverage for them while they are driving the unit for recreational purposes and off-road only.
Limitation to automobile sound and electronic communications equipment (SEF 37)
Limits aftermarket (not factory installed) sound and electronic communication equipment to a maximum of $1,500 for theft and attempted theft-related losses.
Increased limit, automobile sound and electronic communications equipment (SEF 38)
Provides additional coverage on after-market (not factory installed) electronics in your vehicle valued at over $1,500.
Accident rating waiver (SEF 39)
This endorsement acts as an accident forgiveness. It protects you from a rate increase as a result of your first at-fault or partially at-fault accident claim. Policyholders must meet the criteria to qualify for this coverage.
Fire and theft deductible (SEF 40)
This endorsement is added to designate the deductible for total theft and fire loss to be the same as the policy deductible. This endorsement is usually added to motorcycles, mopeds, all-terrain vehicles, etc.
Limited waiver of depreciation (SEF 43R)
Limits depreciation and provides full replacement cost on your brand new vehicle, aside from tire and battery costs, if the vehicle becomes a total loss because of an accident within 30 months of the vehicle purchase.
Limited waiver of depreciation – specified lessee (SEF 43R L)
Limits depreciation and provides full replacement cost on your brand new leased vehicle, aside from tire and battery costs, if the vehicle becomes a total loss because of an accident within 30 months of signing the lease.
Family protection (SEF 44)
Protects you and family members in your vehicle if you are involved in a collision with an uninsured or underinsured driver. Even though you may have the right to collect money from an at-fault driver to reimburse you for your claim, if that driver doesn’t carry enough insurance or has no insurance at all, your claim my not be fully paid. SEF 44 pays the difference between your claim amount and the third-party liability limit of the at-fault driver’s policy, up to your own third-party liability limit. Though SEF 44 is optional, AMA Insurance considers it so important that it is offered on all vehicles when a quote is given, a new policy is written or vehicles are added to a policy.
This webpage contains information about commonly requested personal auto insurance coverages. Your insurance agent can provide a complete list of available coverage.
This webpage contains information about coverages offered by AMA Insurance but is not intended to list all the conditions and exclusions that apply to described coverages. Complete provisions, exclusions and limitations are set out in policy wording booklets, declarations and other insurance documents.
Want to learn more about coverage in Alberta? Visit the Automobile Insurance Rate Board (AIRB) website. The AIRB regulates premium levels for basic coverage (third party liability and accident benefits), monitors additional coverage (collision and comprehensive) and more.