FAQ 27 Endorsement in Auto Insurance: Everything Quebec Drivers Must Know

FAQ 27 endorsement: the overlooked protection that can save you thousands of dollars

You rented an SUV for a family trip to Tremblant. Exiting the hotel parking lot, you hit a cement post. The bumper is smashed, the right fender scratched down to bare metal. The rental agency presents you with a $4,800 bill. Your auto insurance? It doesn’t cover damage to a vehicle you don’t own. Not without FAQ 27 endorsement.

This scenario happens more often than you’d think in Quebec. Every year, thousands of drivers find themselves caught off guard because they didn’t know this small protection existed, costing barely the price of a restaurant dinner. Today, we break down everything you need to know about FAQ 27, an endorsement that should be in the policy of nearly every Quebec driver.

What exactly is the FAQ 27 endorsement?

The FAQ 27 endorsement — its official name is Quebec Endorsement Form Number 27 — is an optional protection you add to your auto insurance policy. Its role is simple but crucial: to cover material damage you cause to a vehicle you don’t own.

In plain language, it means that if you drive a rented car, borrowed from a friend, a courtesy vehicle from a garage, or even a replacement car provided by your insurer after a claim, and you damage it, FAQ 27 takes care of the repairs. Without this endorsement, you pay out of pocket.

This endorsement is standardized by the Autorité des marchés financiers (AMF), which means its basic conditions are the same from one insurer to another. However, coverage limits and certain exclusions may vary — which is why it’s important to read the fine print with your broker.

Why your basic auto insurance isn’t enough

Many drivers believe their insurance policy protects them regardless of which vehicle they drive. This is a very common misunderstanding. In Quebec, your auto insurance covers damage to your vehicle — the one named on your contract. Period.

If you take the wheel of a car not listed on your policy, your collision and comprehensive coverage simply doesn’t apply to damage done to that vehicle. Your liability coverage covers injuries and damage you cause to others, but not damage to the vehicle itself.

This is where FAQ 27 comes in. It fills this gap in your protection by extending your coverage to vehicles you temporarily drive without owning.

How much does the FAQ 27 endorsement cost?

This is probably the best news in this article: FAQ 27 is a remarkably affordable protection. In general, it costs between $50 and $100 per year, depending on your insurer, your driving record, and the protections already in your policy.

Put this in perspective. A single day of CDW (Collision Damage Waiver) insurance from a rental agency costs $15 to $30. So if you rent a car even just 3 or 4 days per year, FAQ 27 is already more economical than the rental counter insurance. And it protects you 365 days a year, not just during the rental period.

Some credit cards offer coverage for rented vehicles, that’s true. But this protection is often limited (15 days maximum, certain vehicle types excluded, high deductible) and the claims process can be a real administrative nightmare. FAQ 27 remains the most reliable and complete solution.

Real-world scenarios where FAQ 27 saves you

To better understand the value of this endorsement, let’s look at real situations where it makes all the difference.

Scenario 1: vacation rental

You rent an SUV from Enterprise for a week-long vacation in the Maritimes. On a gravel road in New Brunswick, a truck kicks up rocks that shatter your windshield and cause chips on the hood. Repair cost: $2,200. With FAQ 27, your insurer covers the bill. Without it, it’s your wallet that takes the hit.

Scenario 2: a friend’s car

Your friend lends you his Honda Civic to pick up furniture from IKEA. On the way back, you hit a massive pothole on Highway 40 and blow out two tires, plus bend a rim. Your friend’s insurance might cover the damage, but his deductible applies — and he’s the one who has to pay it. Not the kind of situation that preserves a friendship. With your FAQ 27, you can claim directly on your own policy, without involving your friend’s insurance.

Scenario 3: courtesy vehicle

Your car is in the shop for a major repair. The dealership lends you a courtesy vehicle. Backing up in the Canadian Tire parking lot, you scrape the rear fender. The garage will charge you for repairs. FAQ 27 takes over.

Scenario 4: moving day

You rent a U-Haul truck for your July 1st move. Maneuvering through a narrow alley in the Plateau, you tear off the side mirror on a post. Most FAQ 27 endorsements also cover rented utility vehicles (verify exclusions with your broker for vehicles over 4,500 kg).

What FAQ 27 covers (and what it doesn’t)

To avoid unpleasant surprises, let’s clarify the limits of this protection.

Covered by FAQ 27:

• Material damage to rented or borrowed vehicles
• Collision, rollover, vandalism, theft (depending on your policy protections)
• Courtesy vehicles loaned by a garage
• Replacement vehicles provided after a claim
• Short and medium-term rentals in Canada and the United States
• Loss of use charges billed by the rental company (depending on the policy)

Generally excluded:

• Vehicles used for regular commercial purposes
• Vehicles you use for an extended period (more than 30 consecutive days, depending on policies)
• Vehicles over 4,500 kg (some insurers)
• Vehicles rented outside Canada and the United States (varies)
• Normal wear and tear and mechanical damage

An important point: FAQ 27 coverage follows the same protections as your main policy. If you only have liability coverage on your own vehicle (no collision or comprehensive), the FAQ 27 endorsement won’t cover collision damage to the borrowed vehicle. Make sure your basic policy includes the right protections.

FAQ 27 vs rental agency CDW insurance: the comparison

When you arrive at the rental counter, the agent will systematically offer you CDW (Collision Damage Waiver) and sometimes additional coverages. It’s their job — and it’s also an important revenue source for rental agencies. But is it worth it if you already have FAQ 27?

Here’s a quick comparison:

Rental agency CDW insurance: $15 to $30 per day, covers only the rented vehicle during the rental period, deductible of $500 to $1,000 in some cases, doesn’t cover personal effects, no coverage for borrowed vehicles.

FAQ 27 endorsement: $50 to $100 per year, covers all vehicles you drive without owning, 365-day-a-year protection, deductible identical to your auto policy, covers both rentals and borrowed vehicles.

The math is quite clear. If you rent a car even once a year for a week, the counter CDW will cost you $105 to $210. FAQ 27 costs half that price — and protects you all year as a bonus.

Who absolutely should have FAQ 27?

Honestly, nearly everyone would benefit from this endorsement. But certain driver profiles should consider it essential:

• Frequent travelers who regularly rent vehicles for vacations or business trips
• Families with one vehicle who sometimes borrow a car from a parent, friend, or neighbor
• Young drivers who don’t have their own vehicle yet but regularly drive their parents’ car
• Car-sharing service users like Communauto (verify specific terms)
• Snowbirds who rent a car in Florida during winter
• Anyone whose vehicle is frequently in the shop and uses courtesy vehicles

How to add FAQ 27 endorsement to your policy

Good news: it’s extremely simple. Here are the steps:

1. Contact your insurance broker. A simple call or email is enough. Your broker can add the endorsement in just a few minutes.
2. Verify your existing protections. For FAQ 27 to be fully effective, make sure your policy includes at least collision protection (Part B).
3. Confirm the limits. Ask your broker what the maximum covered value is and if there are any specific exclusions to your policy.
4. Adjust your deductible if necessary. The FAQ 27 deductible is generally the same as your main policy. If your deductible is $500, that’s what you’ll pay in case of a claim on the borrowed vehicle.

The endorsement becomes effective as soon as it’s added to your policy. No need to wait for renewal.

Common mistakes to avoid

Over the years, here are the most common mistakes we see among Quebec insured individuals regarding FAQ 27:

Believing your credit card is enough. Some Visa or Mastercard cards offer rental vehicle coverage, but it’s often partial, limited in time (15 days), and requires you to refuse the rental agency’s insurance. Plus, the claims process through a credit card is notoriously long and complicated.

Thinking the owner’s insurance covers everything. If you borrow a friend’s vehicle and cause an accident, their insurance might cover the damage — but it’s their claim record that will be affected, their deductible that applies, and potentially their premium that increases next year. It’s a sure way to strain a friendship.

Forgetting to check the exclusions. FAQ 27 doesn’t cover everything. Vehicles used for commercial purposes, very long-term rentals, and certain types of special vehicles may be excluded. Read the conditions with your broker.

Not having collision protection on your own policy. FAQ 27 follows the protections of your main policy. If you only have liability coverage, FAQ 27 won’t cover collision damage to the borrowed vehicle.

FAQ 27 and car-sharing services

With the growing popularity of services like Communauto and Turo in Quebec, the question of FAQ 27 in the context of car-sharing increasingly comes up. The answer is nuanced.

Communauto includes its own insurance coverage in its service fees. However, a deductible applies in case of damage (often around $500 to $1,000). FAQ 27 could potentially cover this deductible, but each insurer has its own rules regarding car-sharing services. Discuss this with your broker to get a clear answer.

For Turo, the situation is even more complex, as it’s a peer-to-peer rental. Again, your broker is the best person to clarify what is and isn’t covered in your specific situation.

Frequently asked questions about FAQ 27 endorsement

What is the FAQ 27 endorsement in auto insurance in Quebec?

The FAQ 27 endorsement, officially called Quebec Endorsement Form No. 27, is an optional protection that covers material damage caused to a vehicle you do not own, such as a rented car, borrowed vehicle, or replacement vehicle. It is added to your existing auto insurance policy.

How much does FAQ 27 cost?

FAQ 27 generally costs between $50 and $100 per year, depending on your insurer, your driving profile, and the protections already included in your policy. This is a fraction of the cost of CDW insurance offered at the rental counter, which often costs $15 to $30 per day.

Does FAQ 27 cover vehicles rented abroad?

In most cases, FAQ 27 covers vehicles rented in Canada and the United States. For rentals outside North America, coverage varies from insurer to insurer. Check with your broker before traveling.

What is the difference between FAQ 27 and rental agency CDW insurance?

CDW (Collision Damage Waiver) is sold at the rental counter and costs $15 to $30 per day. It covers only that specific vehicle during the rental period. FAQ 27 costs $50 to $100 per year and covers all vehicles you drive without owning, all year round. FAQ 27 is almost always more advantageous financially.

Is FAQ 27 mandatory in Quebec?

No, the FAQ 27 endorsement is entirely optional. However, it is strongly recommended by insurance brokers for anyone who occasionally rents or borrows vehicles. Its modest cost makes it a highly worthwhile investment.

What happens if I cause an accident with a borrowed vehicle without FAQ 27?

Without FAQ 27, you would be personally responsible for material damage to the borrowed vehicle. The owner’s insurance might step in, but it’s their claim record that would be affected and their deductible that applies. You could also be sued for repair costs, which can easily reach several thousand dollars.

Does FAQ 27 cover the depreciation of a rented vehicle?

That depends on your policy. Some insurers include coverage for loss of value (depreciation) of the rented vehicle after an accident, while others exclude it. This is an important point to verify with your broker, as rental agencies often charge depreciation on top of repairs.

In summary: FAQ 27, an essential protection at a bargain price

The FAQ 27 endorsement is one of those protections that costs almost nothing but can save you considerable financial headache. For $50 to $100 per year, you get complete coverage every time you take the wheel of a vehicle you don’t own — whether it’s a vacation rental, a borrowed car between friends, or a courtesy vehicle.

If you don’t already have this endorsement on your policy, take two minutes to talk to your broker about it. It’s probably the best value for money in your entire auto insurance coverage.

And if you’re looking to compare prices for your complete auto insurance — including FAQ 27 — the AMF-certified brokers in the AccesDirect network can get you quotes from multiple insurers in just a few minutes.