What does the term 'endorsement' mean in motor insurance?

The term 'endorsement' in motor insurance refers to a modification to the original insurance policy that changes the terms or coverage. This can include various adjustments, such as adding or removing coverage options, altering policy limits, or updating information about the insured vehicle or driver. Endorsements serve as official amendments to the policy, ensuring that the coverage aligns with the current needs and circumstances of the insured.

For instance, if a policyholder acquires a new vehicle or decides to include additional drivers on the policy, an endorsement would formalize these changes. It is crucial to understand endorsements because they reflect how the coverage can evolve over time, allowing adaptability in response to the insured’s situation.