December 10, 2009

The Difference Between An Amendment And An Endorsement On An Auto Insurance Policy

In the market to buy a new auto insurance policy? Shopping for a competitive discount rate is the easy part. While learning how auto insurance policies differ from company to company could take a little more time, it also could dramatically affect the rate that you will ultimately pay. However, you could also choose to stay with your current policy. A friendly auto insurance customer service representative will give you an auto insurance quote and update you on auto insurance policy information. Using a clear understanding of your driving record, these folks can help you determine your best options and what advantages or limitations that can offer you. Once you’ve decided upon your policy, it’s imperative you understand the difference between an amendment and an endorsement so that you don’t suddenly find yourself paying an increased auto insurance rate.

An auto insurance amendment is an update or a change made to your auto insurance policy that would change or correct coverage and therefore change the cost of your new policy. For example, if the state in which you live changed the legislative requirements for auto insurance companies to increase or restrict bodily injury coverage and the limits for bodily injury were increased or even decreased, there would be an auto insurance amendment to your policy. You would receive an updated declarations page in the mail with the new limits to bodily injury in the incident of a collision. Most likely this will affect the cost or the rate and your new policy would need to be adjusted. When you obtain your policy, inquire about the procedure your insurance company follows to make these sorts of changes.

An auto insurance endorsement is a change made to your policy instigated by you, the policyholder. If you make an endorsement to the policy, such as adding another vehicle or adding another driver or another car, be aware of the costs associated with that coverage. Because the coverage would change in this situation, the rate you pay might also be adjusted. It is wise to understand the variables that might affect a change of rate and coverage in your policy.

In summary, when shopping for a new auto insurance policy the best idea is to choose an auto insurance company that is not only competitive in rates, but flexible, when it comes to making changes to your policy. Make sure you are familiar with their policies and be aware when changes are being made to your coverage. Being flexible should appeal to the auto insurance company because it allows customers to grow with the company. And loyal customers that are happy with the way their policy is handled will ultimately bring profits into the auto insurance company.