Tuesday Tip: How well do you know your auto policy?

January 5th, 2015

Have you ever taken the time to review your auto insurance policy? If so, you may have noticed that it will usually contain a bunch of numbered “SEF’s” on it, some for a slight extra premium, with minimal explanation as to why they are there and what they are. Over the next couple weeks, we will try to demystify what these are and why they are an important part of the policy.

Generally speaking, an insurance policy is developed by an insurance company with the same standard wording for all policyholders, and then customized using endorsements, which change the policy language to suit individual needs. This is an easy and cost effective approach for providing detailed insurance coverage without the hassle of fully rewriting the policy each time.

Automobile insurance takes this one step further, and, in each province, the Auto policy language is written by the provincial government and by law each insurer must use the government’s wording when issuing Auto coverage. This ensures that everything is standardized and consistent for everyone. In Alberta, the government’s policies are known as Standard Policy Forms (SPFs) and the endorsements that modify them are known as Standard Endorsement Forms (SEFs). It’s similar in Ontario, with OAPs (Ontario Automobile Policies) and OPCFs (Ontario Policy Change Forms). As Rogers is based in Alberta, we’ll use the Alberta abbreviations for the remainder of the posts on this topic.

Stay tuned for next week when we get into the details on the first 5 of the 10 most common endorsements!

Blog Author: Kevin Lea | Commercial Account Executive | Rogers Insurance Ltd.

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