Direct Compensation–Property Damage (DCPD) in Ontario
DCPD is included in Ontario's standard auto policy, but a policyholder can elect not to claim this protection. Understanding the opt-out matters because DCPD and collision coverage address different situations.
DCPD may cover your vehicle when another insured driver is at fault
FSRA says DCPD can cover damage to your vehicle, its contents or loss of use after an accident in Ontario when at least one other driver with automobile insurance is at fault, subject to the policy and applicable conditions.
FSRA — Standard auto insurance policy →Why is it called direct compensation?
Under DCPD, an eligible policyholder generally deals with their own insurer for covered property damage rather than pursuing the at-fault driver's insurer directly. The statutory and policy conditions determine when the section applies.
DCPD is a property-damage coverage. It should not be confused with statutory accident benefits, which deal with injury benefits, or third-party liability, which addresses covered liability to others.
Can you opt out of DCPD?
Yes. Ontario has OPCF 49, formally titled Agreement Not to Recover for Loss or Damage from an Automobile Collision. FSRA lists OPCF 49 as the endorsement used with the Ontario Automobile Policy OAP 1.
Electing the endorsement can reduce coverage rather than simply changing who handles a claim. The actual form and policy wording should be reviewed because the financial effect after a collision can be substantial.
FSRA — OPCF 49 →DCPD is not the same as collision coverage
DCPD can respond in specified Ontario accidents involving another insured automobile and fault. Collision or upset is optional physical-damage coverage that addresses a different set of insured collision losses, subject to its own deductible and exclusions.
A driver considering removal of one coverage should not assume another section automatically replaces it.
Can DCPD have a deductible?
FSRA says insurers may offer a separate deductible for DCPD. The certificate of insurance and policy documents show the deductible and coverage actually purchased.
Premium changes should be compared against the loss a driver would have to absorb personally if coverage is reduced.
FSRA — Deductibles and rates →