Tuesday Tip: Auto Insurance Endorsements – Part IV
Welcome to the final part of our series on Automobile Insurance endorsements, covering two of the more dynamic endorsements available to most drivers. Today, we are covering two “SEF’s” or endorsements that protect the policyholder from future loss in the event of a collision:
SEF 39 – Accident Rating Waiver – This endorsement, becoming very common in Alberta on both personal and small commercial (sometimes called IRCA) auto insurance policies, serves to protect the policyholder from rate increases as a result of an at-fault collision. This can save many thousands of dollars in increased premiums, as well as give peace of mind while driving down the road. In order to ensure the risk is reasonable, not all drivers will qualify to have this endorsement added to their policy. This is not available to drivers with a poor or minimal driving history, or who have had a recent at-fault accident, typically within the last 3 years. If a half-decent driving record has been established, then, at the option of the policyholder, the SEF 39 can be added on. Note that it must be added on per vehicle, so double check to make sure each insured vehicle has this endorsement listed.
SEF 44 – Family Protection Endorsement – This endorsement, found on nearly every Auto insurance policy in Alberta, is critical to ensure that the driver and passengers involved in a serious not-at-fault accident are protected from loss of income as a result of injury or death, regardless of the insurance status of the at-fault party. This endorsement, often called “Uninsured / Underinsured Motorist” in many other jurisdictions, will, in the event that the driver or passengers of the insured vehicle are injured/killed by a driver without insurance or with inadequate liability limits, provide additional recovery for damages as a result of injuries. These damages must be awarded in a civil court judgment, and the policyholder has to prove they can’t collect that award from the at-fault party. The limit on the SEF 44 matches the policyholder’s Third Party Liability limit, which is now often $2,000,000. This is a critical safety net for the policyholder and their family in the event of a serious loss, and this is by far the most important endorsement to have on your auto policy.
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Thank you for reading our series about Auto endorsements, where we covered a number of the most common ones in Alberta. Of course, there are dozens more we did not cover, so if you have any questions about them or about any type of insurance, please don’t hesitate to contact our #expertbrokers.