What is a car insurance endorsement?

A car insurance endorsement, sometimes called a rider, is an add-on or change to your policy that adjusts your coverage to better fit your needs. Along with standard options like comprehensive, collision, and uninsured/underinsured motorist coverage, many insurers offer endorsements to fill gaps where a basic policy may fall short.

Drivers have plenty of choices when it comes to auto insurance. Some only want enough coverage to meet state requirements, while others prefer broader protection. Keep in mind that endorsements vary by state and insurer. Below, we’ll walk through common add-ons and explain how they can enhance your coverage.

Common car insurance endorsements

Insurance companies offer different add-ons, but these are some of the most popular endorsements drivers choose to add to their coverage.

• Modified car coverage
  • If you make changes to your vehicle, you’ll need to make changes to your insurance coverage as well. This ensures your custom parts and equipment (stereos, performance updates, mobility modifications, etc.) are covered. 
• Classic car insurance
  • If you own a classic car, a typical car insurance policy is not likely to provide the coverage you need. Unlike coverage for new cars, classic car coverage lets you insure your vehicle at its stated value, which is often much more than its actual cash value. 
• Car rental insurance
  • This coverage offers reimbursement for the cost of a rental car or other forms of transportation should your insured vehicle need repairs. You can check your policy for any coverage limits that may apply.
• Roadside assistance
  • If your vehicle breaks down, this coverage can help with towing and other expenses you may incur.  
• Pet insurance
  • While some companies may cover pets through collision coverage, other auto insurers may offer options specifically for your pets that can cover their medical expenses in the event of an accident. 
• Miscellaneous type vehicle endorsement
  • This extends coverage to other vehicle types not included on your standard policy. This may include golf carts, motorcycles, scooters, and other vehicles.  

Endorsements for new or financed cars

The following endorsements are designed to protect you against your car’s depreciating value. Not all companies offer such policies, so it’s a good idea to shop around when looking for coverage.  

• Gap insurance
  • If an accident renders your car a total loss, typical collision and comprehensive coverage would only cover the current value of the vehicle, which can be quite a bit less than the amount that you owe. Gap coverage steps in to help with the difference. 
• New car replacement insurance
  • Should your new car be declared a total loss, this coverage pays to replace the vehicle with a brand-new one of the same make and model. This helps you avoid taking a financial hit from your car’s depreciation.   

Endorsements for business, rideshare or delivery drivers

Your personal auto insurance policy does not provide coverage when your car is used for business purposes, such as deliveries or ride-sharing (e.g., Uber or Lyft). Some auto insurers may allow this coverage to be added through endorsement. In some cases, it may require you to switch to a new policy altogether. 

What to consider when looking for car insurance endorsements

Every insurance provider offers its own specific endorsement options. A good place to start is to check your policy documents (especially the declarations page of your insurance policy) to see what general insurance coverages you currently have. If you are uncertain if you have enough coverage, reach out to an agent or representative from your current insurer to see which endorsements work well with your existing policy. 

It could also be worth searching for a new policy, as they can vary widely in cost and depth of coverage. If you’re looking for competitive auto quotes, The Zebra can help.