The Automobile Insurance Reforms announced in October 2020 included Direct Compensation for Property Damage (DCPD). Beginning January 1, 2022, DCPD will replace the property damage element of your third-party liability coverage on your motor insurance policy. The major goal of this adjustment is to make it easier for consumers to file automobile damage claims.
Is DCPD mandatory in Ontario?
Direct compensation property damage (DCPD) is a type of car insurance that is required by law. All basic auto policies include it, as well as third-party liability and accident coverage. In Ontario, your insurer will compensate you directly for all non-fault accidents.
How does DCPD work in Ontario?
“What am I protected for?” is a question that many vehicle insurance brokers are asked. We’ve looked at numerous coverages under an Ontario vehicle insurance policy so far, and now we’ll take a look at DCPD.
Direct Compensation for Property Damage (DCPD) is a mandated auto insurance coverage in Ontario. It basically implies that if your vehicle is damaged in a non-at-fault accident with another insured vehicle, you will receive direct compensation from your insurance company. The deductible for DCPD is normally $0, but it can be adjusted if desired but who wants to pay a deductible for a non-fault accident?!
There are times when a non-at-fault accident cannot be claimed solely under DCPD for example, a hit-and-run in which case a non-at-fault collision claim may be made. In a 50/50 fault scenario, the insured motorist pays half of their collision deductible, while the other half is covered by DCPD. If you are 100 percent at fault, your Collision coverage will kick in, along with the deductible.
As usual, if you’re unsure about your vehicle insurance policy’s wording or want to double-check all of the coverages you have or need, contact your insurance broker for further information and guidance.
How does DCPD work in Nova Scotia?
Direct compensation for property damage (DCPD) permits insured drivers to be reimbursed by their own insurer for property damage caused by a third-party automobile collision.
What is a DCPD deductible?
Deductibles for DCPD coverage will be set to zero by default. You may be able to reduce your overall premiums by raising your deductible. (When you have a claim, your deductible is the amount you pay out of pocket.)
What does DCPD stand for?
DCPD, or direct compensated property damage, is all about your wheels and has nothing to do with your residence. It is a necessary component of car insurance coverage in Ontario, Quebec, Nova Scotia, New Brunswick, Newfoundland, and Prince Edward Island as part of the no-fault auto insurance system.
Is Nova Scotia a DCPD province?
As of April 1, 2013, DCPD is required for all insurance in Nova Scotia, and it covers for damage to the insured vehicle, its contents, and loss of use caused by a collision in which the insured is not at fault. If DCPD is in effect, the insured is barred from making a claim against the at-fault motorist.
What is OPCF 44r Family Protection Coverage?
When you are not at fault in a collision with an underinsured, uninsured, or unidentified motorist, family protection coverage, or OPCF44R in Ontario, is supplemental car insurance that protects you and qualifying family members in the case of injury or death.
What is direct compensation property damage in Ontario?
When your insurer pays to have your vehicle (property) repaired following a collision, this is known as direct compensation property damage (DCPD). It’s part of the no-fault system, so it doesn’t matter if you’re to blame.
Is Nova Scotia a no-fault insurance province?
When you have no-fault insurance, it does not mean that no one is to blame if you get into an accident. All it means is that if you’re hurt or your car is damaged in an accident, your insurance company will handle your claim rather than going through the time-consuming and expensive court system and dealing with the other party’s insurance company. This is true whether the mishap was your fault or the fault of someone else.
How does no-fault insurance work?
No-fault insurance simply refers to how each individual manages their own claim. In actuality, someone is always partially or completely at fault in an accident, and it is the role of an insurer to identify this in order to assess an individual’s risk and determine how their premiums would be affected. In almost every province, the law requires an insurance company to assign a proportion of fault to each motorist involved based on provincial regulations known as Fault Determination Rules in order to determine fault. These rules describe several accident scenarios and assign blame to each of the people involved in the collision by referring to the rule that most closely fits the accident’s facts. 1 The decision of fault has no bearing on the claim’s eventual payout; as long as the insurance covers the damages caused by the accident, the claim will be paid. This conclusion may, however, be used to make future premium adjustments.
How does a no-fault claim affect my insurance?
Unless you have a program like Accident Forgiveness, your insurance premiums will go up if you are found to be at fault by your insurance carrier. If you have an at-fault or partially at-fault accident, your vehicle insurance rates won’t go up (but it’s not a guarantee your premiums won’t go up at renewal for other reasons). If you are not at fault, your premiums should not increase as a result of your claim, albeit this varies by province.
How do I get no-fault insurance?
In the provinces listed below, no-fault insurance is included in your standard insurance policy. If you’re insured in a province that has implemented this system, you won’t have to contact your insurance provider to get it added to your policy; it will happen automatically. It is necessary to examine the rules where you live because it is not the law in every province. No-fault insurance is currently used in Newfoundland, Nova Scotia, New Brunswick, Prince Edward Island, Ontario, Quebec, and Alberta.
What are the benefits of no-fault insurance?
The amount of time it takes to resolve a claim is one of the key advantages of no-fault insurance. It speeds up the process of paying for any automotive or medical claims because there is no more back and forth between insurance companies attempting to figure out who is to blame.
Not only does this procedure save time, but it also saves money. It avoids the enormous costs of prosecuting an at-fault driver in a judicial system by going straight to your own insurance provider.
What are the legal implications with no-fault insurance?
There are no legal ramifications in any kind. The term “no-fault insurance” exclusively relates to the insurance process. Even if you have no-fault insurance, you could be penalized with a traffic violation by the police.
Is DCPD the same as no-fault insurance?
Direct Compensation Property Damage (DCPD) is a type of no-fault insurance. It’s the part of your auto insurance policy that pays for damage to your car if you’re not at fault. DCPD is a phrase that is perhaps more commonly used by insurance advisors, but it is still useful to know.
Are you curious to learn more? Contact a TD Insurance qualified advisor now to learn more about how accidents affect vehicle insurance prices.
1. See, for example, https://www.fsrao.ca/consumers/auto-insurance/after-accident-understanding-claims-process for Ontario.