What does an "insurance endorsement" do?

An insurance endorsement serves to modify an insurance policy's terms or coverage by adding, removing, or changing aspects of the existing policy. This means that when an endorsement is applied, it can either enhance the policy, extend coverage to new areas, or clarify existing terms. For instance, an endorsement may provide coverage for specific situations that are not included in the base policy, such as adding coverage for rental vehicles or increasing limits on certain types of claims.

This flexibility is crucial for policyholders who may need their insurance to reflect changes in their personal situation or to better align with their needs over time. It's not about canceling the policy or merely providing coverage for additional drivers; those aspects would fall under different processes or types of coverage. Similarly, while endorsements can potentially impact premiums, their primary function is to modify the terms of the insurance agreement rather than directly reducing premiums.