What Is an SEF Endorsement on Canadian Auto Insurance?
In a Nutshell: An SEF (Standard Endorsement Form) endorsement is an add-on to your auto insurance policy that modifies or extends coverage beyond the standard policy wording. They're numbered (SEF 19, SEF 20, etc.) and each provides a specific type of extra protection. Think of them as the "customization options" for your car insurance.
What Are SEF Endorsements?
The Financial Services Commission of Ontario (FSCO) and the Insurance Bureau of Canada (IBC) developed standardized endorsement forms. Each SEF number corresponds to a specific coverage modification:
| SEF Number | Name | What It Does |
|---|---|---|
| SEF 19 | Agreed Value of Automobiles | Removes depreciation from your payout — you get a fixed amount if your car is written off |
| SEF 20 | Loss of Use | Provides a rental car or compensation if your vehicle is in the shop after a claim |
| SEF 24 | Legal Liability for Damage to Non-Owned Automobiles | Covers damage to rental cars or borrowed vehicles |
| SEF 27 | Legal Liability for Non-Owned Automobiles | Coverage when driving someone else's car |
| SEF 43 | Removal of Depreciation Deduction | Waives depreciation on parts replaced after a claim |
| SEF 44 | Family Protection | Coverage if hit by an underinsured driver |
| SEF 48 | Family Protection (Extended) | Extended coverage for uninsured/underinsured motorists |
| SEF 6 | Non-Owned Automobiles for Partner/Employees | Coverage for owned-but-undisclosed vehicles |
Why Are SEF Endorsements Important?
Standard auto insurance policies have gaps. SEF endorsements fill them:
| Gap in Standard Policy | SEF Solution |
|---|---|
| Your car is written off — insurer pays depreciated value | SEF 19 — receive agreed value |
| No rental car while your car is being repaired | SEF 20 — rental coverage |
| You damage a rental car — standard policy may not cover it | SEF 24 — rental liability coverage |
| New parts are used for repairs — you pay for depreciation difference | SEF 43 — new parts, no depreciation deduction |
| Hit by a driver with very low insurance limits | SEF 44 / 48 — family protection coverage |
Do You Have SEF Endorsements?
Most Canadians don't realize SEF endorsements exist or what they have on their policy. Here's how to check:
- Look at your policy documents — specifically the "Endorsements" or "Add-Ons" section
- Ask your broker directly — "What SEF endorsements do I have?"
- Review your policy wording — standard auto policies list all applicable endorsements
Many policies include some SEF endorsements by default. For example, SEF 20 (Loss of Use) and SEF 44 (Family Protection) are included in many standard policies, while SEF 19 and SEF 43 are typically optional add-ons.
How Much Do SEF Endorsements Cost?
| Endorsement | Typical Cost (Annual) | Value for Money |
|---|---|---|
| SEF 19 (Agreed Value) | $50 – $150 | High — protects against depreciation |
| SEF 20 (Loss of Use) | $20 – $60 | Very high — cheap rental coverage |
| SEF 24 (Rental Liability) | $25 – $75 | High — protects when renting |
| SEF 43 (Remove Depreciation) | $30 – $80 | Moderate — for new vehicles |
| SEF 44/48 (Family Protection) | $15 – $50 | Very high — cheap peace of mind |
Which SEF Endorsements Should You Get?
Highly recommended for everyone:
- SEF 44/48 (Family Protection) — cheap coverage for being hit by an underinsured driver
- SEF 20 (Loss of Use) — ensures you have a car while yours is repaired
Recommended for new car owners:
- SEF 19 (Agreed Value) — guarantees payout matches what you paid (or a set amount)
- SEF 43 (Remove Depreciation) — ensures new OEM parts are used in repairs
Recommended for renters/borrowers:
- SEF 24 (Rental Vehicle Liability) — critical if you rent cars with enterprise-like companies
Recommended for occasional drivers of others' cars:
- SEF 27 (Non-Owned Automobiles) — protects you when borrowing a vehicle
SEF Endorsements vs. Add-On Coverage
Not all add-ons are SEF endorsements. Some common non-SEF add-ons include:
- Accident forgiveness — protects your first at-fault accident from raising rates
- Waiver of deductible — reduces/eliminates deductible in certain scenarios
- Gap insurance — covers the difference between what you owe and the car's value (similar to but distinct from SEF 19)
Key Takeaways
- SEF endorsements customize your auto insurance — they're standardized across Canadian insurers
- The most important ones: SEF 19 (agreed value), SEF 20 (loss of use), SEF 43 (no depreciation deduction)
- Most are inexpensive ($15–$150/year) relative to the protection they provide
- Always check what SEF endorsements are on your current policy
- Ask your broker what SEF endorsements they recommend for your situation
- SEF endorsements are the same regardless of which insurance company you use — they're nationally standardized
Last updated: July 2026
Disclaimer: This article provides general information about SEF endorsements in Canadian car insurance. The availability, cost, and coverage details of specific endorsements vary by insurer and province. Always review your policy and consult with a licensed insurance professional before adding or removing endorsements.