Endorsement FAQ 27 in car insurance in Quebec: complete guide 2026

The FAQ 27 Endorsement: The Little-Known Coverage That Can Save You Thousands of Dollars

You’ve rented a car for a family trip to Tremblant. As you exit the hotel parking lot, you hang a cement pole. The bumper was smashed, the right wing scratched down to the metal. The rental agency presents you with an invoice for $4,800. Your car insurance? It does not cover damage to a vehicle that does not belong to you. Not without the FAQ 27 amendment.

It’s a scenario that happens more often than we think in Quebec. Every year, thousands of motorists find themselves caught off guard because they were unaware of the existence of this small protection that barely costs the price of a dinner at a restaurant. Today, we dissect everything you need to know about FAQ 27, an endorsement that should be found in the policy of almost all Quebec drivers.

What exactly is the FAQ 27 endorsement?

The FAQ 27 endorsement — the official name is Quebec Endorsement Form 27 — is an optional coverage that you add to your auto insurance policy. Its role is simple but crucial: to cover material damage that you cause to a vehicle that you do not own.

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

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

Why your basic car insurance isn’t enough

Many drivers think that their insurance policy protects them no matter what vehicle they drive. This is a very common misunderstanding. In Quebec, your car insurance covers damage to your vehicle — the one named on your contract. Period.

If you get behind the wheel of a car that is not on your policy, your collision and comprehensive coverage simply does not apply to the damage to that vehicle. Your liability covers injuries and damage you cause to others, but not damage to the vehicle itself.

That’s where FAQ 27 comes in. It fills this gaping hole in your coverage by extending your coverage to vehicles that you temporarily drive without owning them.

How much does the FAQ 27 endorsement cost?

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

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

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

Real-world scenarios where FAQ 27 saves the day

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

Scenario 1: the holiday rental

You rent an SUV from Enterprise for a week-long vacation in the Maritimes. On a gravel road in New Brunswick, a truck lifts rocks that smash your windshield and cause shrapnel on the hood. Cost of repairs: $2,200. With FAQ 27, your insurer covers the bill. Without it, your wallet suffers.

Scenario 2: A friend’s tank

Your friend lends you his Honda Civic to pick up furniture from IKEA. On the way back, you hit a monster pothole on the 40 and you puncture two tires, in addition to bending a rim. Your friend’s insurance may cover the damage, but their deductible applies — and it’s up to them to pay for 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.

Scenario 3: The Courtesy Vehicle

Your car is in the garage for a major repair. The dealership will lend you a courtesy vehicle. When you back up in the Canadian Tire parking lot, you get the rear fender bogged down. The garage will charge you for the repairs. FAQ 27 takes over.

Scenario 4: Moving

You rent a U-Haul truck for your July 1st move. While manoeuvring through a narrow alley in the Plateau, you rip the rear-view mirror off a pole. Most FAQs 27 also cover leased commercial vehicles (check with your broker for exclusions 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:

• Property damage to the rented or borrowed vehicle
• Collision, Rollover, Vandalism, Theft (depending on your policy coverages)
• Loaner vehicles from a garage
• Replacement vehicles provided after a loss
• Short- and medium-term rentals in Canada and the United States
• Loss of use billed by the landlord (depending on the policy)

Generally excluded:

• Vehicles used for regular business purposes
• Vehicles you use for extended periods of time (more than 30 consecutive days, depending on the policy)
• Vehicles over 4,500 kg (some insurers)
• Vehicles leased outside of Canada and the U.S. (variable)
• Normal wear and mechanical damage

One important point: the coverage of FAQ 27 follows the same protections as your main policy. If you only have third party liability insurance on your own vehicle (no collision or all perils), the FAQ 27 endorsement will not cover collision damage to the borrowed vehicle. Make sure your base policy includes the right coverages.

FAQ 27 vs CDW insurance at the rental counter: the comparison

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

Here’s a quick comparison:

Landlord CDW Insurance: between $15 and $30 per day, covers only the rented vehicle for the duration of the rental, $500 to $1,000 deductible in some cases, does not cover personal effects, no coverage for borrowed vehicles.

Endorsement FAQ 27: between $50 and $100 per year, covers all vehicles you drive without owning them, 365 days a year protection, deductible identical to your car policy, covers both leases and loans.

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

Who should definitely have the FAQ 27?

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

• Frequent travelers who regularly rent vehicles for vacation or business trips
• Families with a single vehicle who sometimes borrow a car from a relative, friend or neighbour
• Young drivers who do not yet have their own vehicle but regularly drive their parents’ vehicle
• Users of car-sharing services such as Communauto (check the specific terms)
• Snowbirds renting a car in Florida during the winter
• Anyone whose vehicle is often in the garage and who uses courtesy vehicles

How to add the FAQ 27 endorsement to your policy

The good news is that it’s extremely simple. Here are the steps:

1. Contact your insurance broker. A simple call or email is all it takes. Your broker can add the endorsement in minutes.
2. Check your existing coverage. For FAQ 27 to be fully effective, make sure that your policy includes at least collision coverage (Section B).
3. Confirm the limits. Ask your broker about the maximum value covered and if there are any exclusions specific to your policy.
4. Adjust your deductible if necessary. The deductible for FAQ 27 is usually the same as your master policy. If your deductible is $500, that’s what you’ll pay if you make a claim on the borrowed vehicle.

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

Common mistakes to avoid

Over the years, here are the errors that are most often seen among Quebec policyholders in connection with FAQ 27:

Believing that the credit card is enough. Some Visa or Mastercard cards offer coverage for rented vehicles, but it’s often partial, time-limited (15 days), and requires you to decline the landlord’s insurance. In addition, the credit card claim process is notoriously lengthy and complicated.

Thinking that homeowner’s insurance covers everything. If you borrow a friend’s vehicle and cause an accident, their insurance may cover the damage — but it’s their record that will be affected, their deductible will apply, and potentially their premium will increase the following year. It’s a sure way to put a friendship to the test.

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

Not having collision protection on your own policy. FAQ 27 tracks the protections of your master policy. If you only have civil liability, FAQ 27 will not cover collision damage to the borrowed vehicle.

FAQ 27 and car-sharing services

With the rise in popularity of services such as Communauto and Turo in Quebec, the question of FAQ 27 in the context of car-sharing is becoming more and more important. The answer is nuanced.

Communauto includes its own insurance coverage in its service fees. However, a deductible applies in the event 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 is a peer-to-peer rental. Again, your broker is the best person to clarify what is covered and what is not in your specific situation.

Frequently Asked Questions about Endorsement FAQ 27

In short: FAQ 27, a must-have at a low price

The FAQ 27 endorsement is one of those coverages that costs next to nothing but can save you a considerable financial headache. For $50 to $100 a year, you get comprehensive coverage every time you get behind the wheel of a vehicle you don’t own — whether it’s for a vacation rental, a loan with friends or a loaner vehicle.

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

And if you’re looking to compare prices for your entire car insurance — including FAQ 27 — the AMF-certified brokers in the Assur360 network can get you quotes from multiple insurers in minutes.