Tuesday Tip: Auto Insurance Endorsements Part III
There are many endorsements out there, but let’s focus today on a couple that expand coverage beyond what is offered in a standard Alberta Auto Insurance (SPF 1) policy:
SEF 27 – Legal Liability for Damage to Non-Owned Automobiles: This handy endorsement, available for a nominal fee on most personal and small commercial Auto insurance policies, provides coverage for physical damage you do to a vehicle that is not owned by the insured. Typically, coverage applies anywhere in North America, so if you are borrowing a friend’s vehicle or renting from a rental car company on vacation, you can have coverage through your own policy in case you wreck it. This can be very beneficial as it allows you to decline the insurance offered by the rental agency, which can often be north of $20 a DAY (instead of ~$30-40 a YEAR for the SEF 27). If you rent or borrow vehicles on a semi-regular basis, this endorsement can be an excellent value-add to your Auto insurance policy.
SEF 6c – Public Passenger Vehicles Endorsement – This endorsement, commonly known as the “carry passengers for compensation” endorsement, is what you need to have on your vehicle if you are getting paid for driving them around. This applies to taxis, shuttles, and, very importantly, the rapidly growing “ride-sharing” companies such as Uber and Lyft. If you are carrying passengers for hire, and do not have this endorsement, your auto insurance policy will very likely be found completely void in the event of a crash, leaving you on the hook for not just the repairs to your vehicle, but also all damages and injury to third parties. These costs and legal fees can easily run into the hundreds of thousands or millions of dollars, so if you want to get paid for driving people, ensure you are properly protected. An insurance broker can help you figure out the right insurance coverage for your use and operations.”