The important points
- Q.E.F. No. 27a is an optional car insurance endorsement in Quebec. It covers damage to vehicles the policyholder does not own, like rental cars.
- The endorsement covers the designated insured, as well as their spouse and anyone else specifically listed on the policy as a designated driver.
- Vehicles owned by people residing with the insured (like a roommate’s car) are not covered under the endorsement.
What is Q.E.F. No 27a?
Q.E.F. No. 27a is an optional endorsement for car insurance customers in Quebec. Its official title is “Civil liability resulting from damage caused to vehicles of which named insured is not owner (excluding vehicles provided by an employer)”. Now that’s quite a mouthful. But, it basically means coverage for a rental vehicle or a vehicle that you borrow, like a friend’s or a parent’s car.
Who is covered by No. 27a?
Q.E.F. No. 27a covers the designated insured, their spouse, and anyone else insured under the policy.
What is covered by Q.E.F. No. 27a?
This endorsement covers damage to a vehicle you don’t own, but only in the case of an at-fault accident. A not-at-fault accident will be covered by the vehicle owner’s insurance or by the at-fault party.1
Q.E.F. No. 27a covers short-term leased vehicles and temporary replacement vehicles (like a courtesy car while your vehicle is in the shop).2 It may also cover motorhomes, RVs, travel trailers, pop-up campers, utility trailers, and moving trucks. Note that any vehicle covered under the endorsement must be rented for personal use.
What (and who) is not covered by Q.E.F. No. 27a?
Anyone who does not fall under the definition of “insured person” is not covered by this endorsement. For example, if you let a friend drive the rental vehicle and they get into an accident, Q.E.F. No. 27a would not cover the damages.
Vehicles owned or leased by the insured or anyone residing with them are not covered. For example, Q.E.F. No. 27a would not cover you if you damaged your cousin’s SUV, if you both live at the same address.
Vehicles owned or leased by the insured’s employer or the employer of anyone residing with them are also excluded. That means Q.E.F. No. 27a would not cover your work vehicle.3
Additionally, Q.E.F. No. 27a does not cover rented motorcycles, three-wheeled vehicles, or vehicles you use for commercial purposes.
Finally, this endorsement is not valid outside of Canada and the United States. If you are renting a vehicle in Europe or South America, for example, you would have to take out insurance offered by the rental company or your credit card.
Coverage limits
Coverage limits vary depending on the insurance provider. At Square One, Q.E.F. No. 27a has a limit of $50,000 and a deductible of $500.
Commonly asked questions
If I damage somebody else’s property with a rental vehicle, will Q.E.F. No. 27a cover me?
Damage you cause to others’ property would be covered by Section A (civil liability) of your auto insurance policy. In Quebec, the minimum amount for civil liability is $50,000, but you can always select a higher amount for better coverage.
What are my options if I don’t want to purchase Q.E.F. No. 27a ?
If you don’t have Q.E.F. No. 27a , you can accept the insurance plan offered by the rental company. Alternatively, your credit card may offer insurance coverage if you use it to pay for the rental.
Are peer-to-peer rental services like Turo covered by Q.E.F. No. 27a ?
Services like Turo involve renting a vehicle that you don’t own, so Q.E.F. No. 27a a will cover them. However, if the owner of the Turo vehicle lives at your residence, it would not be covered.
Sources
- Info assurance. “Endorsement 27: coverage for damage to vehicles you do not own.” infoassurance.ca, infoassurance.ca/en/blog/auto/endorsement-27-coverage-for-damage-to-vehicles-you-do-not-own. Accessed 30 August 2024.
- Groupement des assureurs automobiles. “Borrowing or renting a vehicle? Think about Endorsement 27.” gaa.qc.ca, gaa.qc.ca/en/documents/articles/borrowing-or-renting-a-vehicle-think-about-endorsement-27. Accessed 30 August 2024.
- Jessie Hébert-Barbeau. “How to Improve Your Auto Insurance Coverage.” Lareau insurance brokers, 23 November 2020, lareau.ca/en/article/how-to-improve-your-auto-insurance-coverage.
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About the expert: Daniel Mirkovic
A co-founder of Square One with 25 years of experience in the insurance industry, Daniel was previously vice president of the insurance and travel divisions at the British Columbia Automobile Association. Daniel has a bachelor of commerce and a Master of Business Administration (MBA) from the Sauder School of Business at the University of British Columbia. He holds a Canadian Accredited Insurance Broker (CAIB) designation and a general insurance license level 3 in BC, Alberta, Saskatchewan, Manitoba and Ontario.
