Endorsement in Car Insurance

Sometimes, the details in your car insurance policy may not match your current information. For example, you may have changed your address, added new accessories to your car, or updated your contact number. If these changes are not reflected in your policy, they could cause problems during a claim, especially if the insurer sees them as important.

To fix this, you can ask for an endorsement. This simply means making an official change to your insurance policy with the insurer’s approval.

You can update things like your personal details, the car’s value (IDV), or even the coverage you need. These changes are recorded as part of your policy and are legally valid.

Endorsements aren’t always compulsory, but they help keep your policy accurate and useful when you really need it.

The types of endorsement in insurance include changes in vehicle details, policy terms, coverage, policy Insured Declared Value, etc. Let us discuss these types in detail below.

An insurance endorsement is an official update to your car insurance policy that keeps your coverage accurate and relevant. Making these changes is important because they help ensure your claim process is smooth and hassle-free.
Endorsements also help you stay compliant with legal requirements by reflecting any changes, such as adding a new driver or updating vehicle details. Additionally, they allow you to adjust your coverage to better fit your current needs.
In short, endorsements keep your car insurance policy up to date and working effectively for you.

When we talk about an insurance endorsement, it means making official changes or additions to your existing car insurance policy. These changes help keep your coverage accurate and tailored to your current situation. Broadly, there are two types of endorsements in car insurance.

Modifications to Existing Policy Terms or Coverage

The first type includes changes that update or correct your current policy details. For example, you might need to fix a misspelled name, update your address, or change your contact number. Similarly, suppose you switch to a new vehicle or modify your existing car, such as changing the fuel type or adding extra features. In that case, these changes must be reflected in your car insurance endorsement. This ensures your policy stays valid and matches your vehicle and personal details.

Additions to Policy Terms or Coverage

The second type involves adxding new coverage options or restrictions without rewriting the original policy. For instance, you could add extra protection, such as legal liability coverage for another driver or coverage for special, custom parts fitted to your car. Sometimes, you may agree to certain restrictions, such as a higher deductible for specific types of damages. These additions, known as auto insurance endorsements, allow your policy to evolve with your changing needs without requiring a new policy.

You can make an endorsement in your car insurance policy during the policy term or at the time of renewal. Endorsements are intended for existing policies to reflect any updates or corrections, such as a change in address or the addition of accessories. When you buy a new policy, these changes are included from the start, so no endorsement is needed.

Some people think they can request endorsements as often as they like. While most insurers don’t have a fixed limit, it’s better to avoid making too many changes. Multiple endorsements within a short period may lead to errors or confusion in your policy, particularly during claim settlement.

It’s a good idea to group your changes and make one or two endorsements per policy term, just to keep things simple and accurate.

The insurance endorsement becomes part of your insurance contract, which means that it remains valid for the term of your policy. If you wish to avoid making any more changes at the time of your policy renewal, the policy endorsements in your car insurance will be activated and will remain so until the end of your next policy term.

In some cases, the insurance endorsements are added for a specific period, as stated in the policy by the insurer. So, it is advisable to read all the terms and conditions mentioned in the policy before you make an endorsement or sign a contract.

Making changes to your car insurance policy is easy when you follow a few simple steps. Here’s how you can get an endorsement done:

1. Know what change you need – Whether you’re updating your address, adding a CNG kit, or correcting a mistake in your name, identify the type of update you want in your policy.

2. Get in touch with your insurance company – You can usually raise the request online, through email, or by calling customer service. If needed, visit the nearest branch.

3. Submit the right documents – For example, if you're adding a new accessory, you may need to share the bill. Your insurer will guide you on what documents are required.

4. Fill out the endorsement request form – Mention all the updates clearly. Make sure the information you provide is accurate.

5. Receive the updated policy – After your request is processed, you’ll get the updated policy with the endorsement added. If the premium changes, you’ll be informed before.

That’s it! Just make sure your policy always has the latest details to avoid any issues during claims.

Some changes made through endorsements can affect your car insurance premium. These changes don’t always lead to extra charges, but in cases where they do, insurers may revise the premium accordingly. This is commonly referred to as a premium adjustment due to endorsement.

Here’s how it generally works:

● Increasing Coverage: If you add features like zero depreciation, engine protection, or reduce your voluntary deductible, your coverage increases. This can lead to a higher premium since the insurer is taking on more risk.

● Reducing Coverage: If you remove certain add-ons or increase your voluntary deductible, your coverage reduces, and the premium may come down.

● Vehicle-Related Changes: Installing approved safety features (e.g., ARAI-certified anti-theft devices) can fetch discounts. However, if you upgrade to a higher engine capacity or add high-value accessories (like infotainment systems or alloy wheels), it may increase your car’s IDV or risk profile, resulting in a higher premium.

Premium changes after endorsements depend on several factors, including the type of endorsement, vehicle specifications, location, previous claims history, and other underwriting guidelines, not just the nature of the change itself.

Keeping your car insurance policy updated with the appropriate insurance endorsements can offer several valuable benefits:

● Improved Accuracy: Endorsements help maintain the accuracy of your policy information; however, please remember that this depends on your prompt notification to your insurer of any changes. Insurers typically do not automatically track updates without prior notification.

**● Better Coverage Alignment: ** With endorsements, you have the flexibility to adjust your coverage according to your current needs and budget. However, the extent of protection depends on the specific endorsements you select and the associated premiums.

● Legal Compliance: While insurance endorsements help keep your policy accurate, staying legally compliant also depends on updating your vehicle records with the RTO, especially in cases like ownership transfers or major modifications. Still, having updated insurance helps avoid claim issues during such changes.

● Simplified Claim Process: Keeping your policy details up to date through endorsements can help reduce claim delays. However, prompt claim settlement also requires proper documentation and adherence to the insurer's procedures.

● Premium Adjustments: Please note that adding or modifying endorsements may affect your premium; therefore, it’s advisable to check how these changes impact your costs.

● Policy Validity: Endorsements remain valid for your current policy and should be renewed or updated with each policy renewal.

Read more: https://www.tataaig.com/knowledge-center/car-insurance/add-on-cover-car-insurance

Once you understand how endorsements work, it’s just as important to choose an insurance provider that makes these changes easy to manage. With Tata AIG, you can make updates like changing your address, adding accessories, or correcting vehicle details—all without starting over with a new policy.

While third-party insurance is legally required, a comprehensive car insurance plan from Tata AIG gives you wider protection, including cover for your own car’s damages. That’s why keeping your policy updated through endorsements is such a key part of staying covered.

Tata AIG also makes things simpler with its digital process. You can raise endorsement requests online, share documents, and get updated policy papers without running around. Plus, with access to 5900+ cashless garages across India, you’re supported wherever you go.