There are many optional endorsements that can be added to your automobile policy that will better protect you. Below is a highlight of the four most prevalent of those endorsements:
- Customization: Do you have any after market additions to your vehicle? For instance, is your vehicle lifted and have off-road tires? Do you have truck caps, bedliners, extra lighting? You may need to add an additional amount of insurance for these items to be covered properly.
- Loan/Lease or Gap Coverage: This endorsement pays the difference between the current value of your vehicle and what is owed on it in the event of a total loss. Since the value of a vehicle depreciates the minute you drive it off the lot, the value could be substantially lower than what is financed.
- Replacement Cost: In the event of a total loss, this coverage pays to replace your current vehicle with one of like kind and quality. Without the endorsement, most policies pay on an Actual Cash Value basis.
- OEM (Original Equipment Manufacturer) Parts: This endorsement pays to repair your vehicle using parts made by the car’s manufacturer. Without this endorsement, aftermarket parts may be used.
If you are interested in learning more about any of these endorsements, or your policies in general, your EHD team is happy to help.
