Auto Insurance Endorsement: What does it cost?

Why is insurance endorsement important? Why is it necessary to address insurance gaps in your client’s policy? And how can agents benefit from it? We will be discussing all these issues in this blog.  

What is an insurance endorsement?

An insurance endorsement, also known as insurance riders, may be used to add, delete, exclude or change coverage.   

Insurance endorsement is to increase the standard limits of the coverage. Adding to it, it can take preference over the original agreement.   

As per statistics, policies are endorsed at least once a year. 

Why auto insurance endorsement? 

Give your client choices for their insurance policy. Help them with add-ons — insurance endorsements or insurance riders.  

Why? Because It allows you to customize the plan as per need. You should know that the auto insurance policy is usually not enough to address a client’s needs. So you can pitch a new chapter of ENDORSEMENT. 

Is it necessary for agents to know about endorsements? The answer is yes!  

Learning the ins and outs of auto insurance endorsement/riders is beneficial for agents – whether your client has signed up for auto insurance or not. 

Insurance riders provide advantages and limitations to an insurance policy. So you need to understand what endorsements are available for an auto policy, and how that endorsement can change the current insurance policy of your clients? 

Auto insurance endorsements are handy. Why? Because they provide broad coverage, additions, or changes that may be necessary for your client.

Identifying the Insurance Gaps

To use insurance riders, agents should first identify the insurance gaps that their client has in their policy. When you notice a gap in an auto policy coverage, that is when insurance endorsements come into action. 

According to the Insurance Information Institute, collision and comprehensive coverage are optional coverages. So, if your client is in an accident, the damages to your person and property may not be covered in the absence of collision coverage. Similarly, if a car gets damaged by fire, falling objects, or destruction, you may not be covered if you do not have comprehensive coverage.  

Do not just assume!!  

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Check for insurance gaps in your client’s coverage.   

Here are a few insurance endorsements that help address some of the insurance gaps.  

  • Miscellaneous type vehicle endorsement  
  • Extended on owned coverage  
  • Auto loan/lease coverage  
  • Excess electronic Coverage  
  • Coverage for damage to auto  
  • Optional limits transportation expenses coverage.  

Insurance endorsements confirm clients the ability to conduct business. They will increase or the amount of premium for the additional coverage though. So, agents ought to stay up to date with the changing regulations. Follow-up with the clients and learn about current policies to meet their needs.  

How can insurance agents benefit from insurance endorsements?  

Agents earn through premium and compensation from selling insurance to their clients. The same goes for insurance endorsements. Being an agent, you understand the client’s situation, needs, and requirements. In addition, find them the best insurance policy within their budget.

Being an agent, you should know and address the insurance gaps that your client has. Your job as an agent is to suggest your client policies that address their insurance gaps.

  • Taking simple precautions to close coverage gaps on an unendorsed business Auto or garage policy will help prevent an E&O loss. Avoid E&O claims that can be filed by your client by addressing the insurance gaps.
  • Provide excellent service and coverage to your client. Why? Because they are most likely to refer you to someone.
  • The most crucial asset for any business is their goodwill. Create goodwill and improve the value of your business.

REMEMBER, some endorsements are added to the policy voluntarily. Others are mandated by state law and ISO rules.

Auto insurance endorsements can be an excellent way to add extra coverage to your client’s auto policy. Therefore eliminating the need to purchase a new one for them. Be the right agent and guide your client with the proper coverage. Let them know and if any additional endorsements make sense to add.

Do you agree with what we’ve said? Let us know in the comments below.

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!

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