03/08/2024
As of January 1, 2024, drivers can opt out of Direct Compensation-Property Damage (DCPD) with OPCF 49. This is the newest endorsement you can add to your policy. Why would you consider adding it?
Drivers are always looking for ways to lower their Ontario car insurance. This new OPCF is one of the many ways the government seeks to give consumers more choices. However, OPCF 49 has pros and cons you should understand before removing DCPD from your policy.
Below, you’ll learn what OPCF 49 is, how it works, what it includes, and if it will lower your rate.
@3 key takeaways of OPCF 49
1-DCPD covers damage to a vehicle when the policyholder is not at fault.
2-Starting in 2024, drivers in Ontario will be given the choice to opt out of DCPD coverage.
3-Declining DCPD can lower insurance premiums, but it also removes important coverage.
What is OPCF 49?
OPCF 49 Agreement Not to Recover for Loss or Damage from an Automobile Collision allows drivers to opt out of the direct compensation property damage portion of mandatory car insurance in Ontario.
Ontario Policy Change Forms (OPCFs) give drivers more options to alter their policy to add, reduce, or change existing limits. Before introducing OPCF 49, DCPD was mandatory for all drivers. You did not have an option to remove it from coverage. Now you do.
If you add OPCF 49, you give your insurer permission not to compensate you for any physical damage to your car if it’s involved in an accident.
Keep in mind that DCPD will still be included in mandatory coverage when you get a car insurance quote. You need to add OPCF 49 to remove it and qualify for a lower premium. Speak with our team to see if this endorsement makes sense for you.
