When purchasing an insurance policy in Alberta, you may encounter the term SEF, which stands for Standard Endorsement Form. Basically, it’s a way to apply additional coverages or exclusions to a standard insurance policy. This can be helpful because you can save money on your insurance rates or receive extra protection without breaking the bank.
In Alberta, basic auto insurance needs include accident benefits and third-party liability coverage. In contrast, collision and comprehensive insurance are optional and not required by law. Even when some types of coverage aren’t required by law, you might want to consider adding them to your car insurance policy. Life is unpredictable, and you never know what type of damage can happen when you’re on the road.
The Superintendent of Insurance determines what amendments are allowed on existing insurance contracts. This includes the ability to add, delete, exclude or otherwise change the scope of the original policy.
How are the amendments applied? They use SEF, and each change has a unique numerical code further defined by adding an alphabetical component.
Ten basic SEFs your insurance company wants you to know about
Several types of SEFs or Standard Endorsement Forms are available. Some may apply to you, while others will not. In order to make additions to your policy, such as these ones, you need to reach out to your insurance company directly. Here are the most common SEFs to know about:
SEF 13D = Limited Glass Coverage
This SEF limits the coverage you receive for your vehicle’s glass, which can reduce your car insurance premium. It allows you to exclude the front windshield from your coverage. However, there is often an exception if the damage to the windshield was caused by an accident or rollover.
SEF 13H = Deletion Hail Coverage
Inclement weather can wreak havoc on your vehicle, and you can’t predict what will happen. Despite this, hail doesn’t happen very often. Having this SEF means you will not receive coverage if your vehicle is damaged by hail.
SEF 19 = Limit of Amount
All types of insurance policies have limits and conditions. When you have this endorsement, the amount payable is limited to the amount specified in the endorsement or the actual cash value. It comes down to which one is less.
SEF 19A=Valued Automobile(s)
If you have a valued automobile, you can receive additional coverage for it as specified in a predetermined and agreed-upon amount. This coverage is often used to cover collector vehicles that need their value verified by appraisal. The chances are if you own a classic car, you want to keep it safe, which is why you need coverage even if you don’t take it out on the road.
SEF 20 = Loss Of Use
Suppose your vehicle gets damaged in an accident and is being repaired. In that case, this SEF provides compensation for the costs of a replacement vehicle or the use of taxi cabs and public transportation. The coverage will vary depending on the loss outlined in your personal policy. It’s also subject to the limits of your policy.
SEF 27 = Legal Liability To Non-Owned Vehicles
If you are renting a vehicle, this endorsement allows you to use your personal auto/motorcycle insurance when driving it. The limits and conditions are dependent upon the limits and conditions of your personal policy.
SEF 35 = Towing And Emergency Services
Having this endorsement gives you a set amount of money to cover towing and other emergency services for a vehicle that is undrivable. Think of this as a type of roadside assistance. You never know when you’ll get stranded on the road and you’re probably aware of how much a tow truck costs.
SEF 39 = Accident Rating Waiver
Theft and fire losses don’t usually come with a deductible. However, you can get one by adding this SEF to your insurance policy. Paying a deductible can help reduce your insurance rates, even if an extra upfront cost seems frustrating at the moment.
SEF 43R = Limited Waiver Of Depreciation
Repairing or replacing a vehicle after an accident can cost a decent chunk of change. However this endorsement will waive these costs, but there are certain restrictions to this endorsement. Speak with your insurance company to learn more about how this addition can benefit you.
SEF 44 = Family Protection
If you and (any) dependent family members are involved in a collision with an uninsured, underinsured, or unidentified vehicle, this endorsement can help. It comes into effect if you or any of your family members are the operator of a vehicle, a passenger in a vehicle or a pedestrian.
There are many types of SEFs available, which can make choosing the one(s) that are right for you difficult. Although you don’t carry any legal liability for having them on your insurance policy or not, you should still be aware that they exist. That’s because they can save you money on your insurance premium or provide you with extra protection from various events. Next, we will discuss car insurance policies in Alberta and the types of coverage available.
Car insurance policies in Alberta
In Alberta, you have to purchase an automobile insurance policy with certain types of coverage. Not everyone has the same coverage. This is because some types are mandatory while others are not. Let’s review the types of car insurance coverage available in Alberta that you have the option of adding an SEF endorsement to:
Mandatory third-party liability coverage and more
If you operate a motor vehicle in Alberta, you have to include certain types of coverage to have an insured vehicle. Your insurance company will advise you to add third-party liability and accident benefits coverage to your policy since they are mandatory for both. If you don’t have them, you can face significant fines if you are pulled over.
Third-party liability coverage provides compensation if you get into an at-fault accident that causes property damage or injury. If an incident occurs, your insurance company will offer to provide compensation that can be as high as your policy limit. In Alberta, you need to have a minimum of $200,000 in coverage, but you can pay for additional coverage if you feel it’s necessary.
Accident benefits also play an important role in car insurance in Alberta since it’s mandatory. They’re unique in that they provide compensation to injured parties for their losses regardless of who’s at fault for the accident. They offer compensation for medical expenses, rehabilitation costs, death or funeral benefits, and income replacement if the injured parties cannot work.
Coverage for physical damage
Physical damage coverage is also available in Alberta, but it’s not against the law to go without it. It covers first-party property damage. In the province, you don’t need to have coverage if your vehicle is damaged in a shared fault accident or other events like hail theft or vandalism. To receive this type of insurance protection, you need to go out of your way to purchase it.
Generally, this type of insurance can be divided into two categories: collision and comprehensive. Collision insurance coverage will compensate you if your vehicle is physically damaged as a result of colliding with another vehicle or object. In terms of comprehensive insurance, you’ll be covered if your vehicle sustains physical damage that wasn’t caused by an accident, including theft, vandalism or hail. Speak with your insurance provider if you’re considering these types of coverage.
Standard endorsement forms
Standard endorsement forms, or SEFs, are a way to alter your car insurance policy. They often address a specific risk and can work to the individual’s advantage. By making a purchase, policyholders can protect themselves from common problems or more obscure ones. It all comes down to your needs and what your insurance company offers.
In Alberta, you don’t have to purchase all the types of insurance coverage available to be protected. In fact, you can buy the minimum amount of coverage available and be able to drive legally. However, sometimes, certain types of optional coverage can make a difference because they help you deal with unforeseen effects effectively. In the end, it’s your choice when it comes to your coverage and endorsements on your car insurance policy.
Contact BrokerLink today
Sometimes, your insurance policy doesn’t include everything you need or in other cases, you’re paying for something you don’t use. That’s why using a SEF to get additional coverage or add exclusions to your policy can help. It allows you to reduce insurance premiums or increase your rates in favour of receiving more protection. Either way, you’re gaining something you didn’t have before.
Navigating the world of insurance alone can be intimidating. That’s why you’ll need a professional insurance broker to help you find the coverage. At BrokerLink, we are here to help. We can easily answer your top car insurance questions. Give us a call, use our online quote tool or visit one of our community branches across Canada to get started today.
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