The OPCF Series: OPCF 43
Ontario Policy Change Forms (OPCF) are numerous but there are a few forms that are more common than most, We will touch on a few of these forms that may be beneficial to Ontario drivers.
If you have bought a brand new vehicle last thing you want to happen is for the car to be completely written off in a collision. By adding an endorsement to your policy you can help protect your pocketbook in the event of a total loss.
OPCF 43; Removing Depreciation Deduction: This applies to bought, leased or financed brand new vehicles, This coverage prevents the insurance company from incorporating depreciation into a settlement if a vehicle has been written off. It does not take into consideration any outstanding car loans through a banking institution.
To give an example, a new car is purchased for $35,000 & could be worth $28,000 six months down the line due to depreciation. If the car is a total loss, but the OPCF 43 coverage has been added, an insurance company would pay out the original purchase price of $35,000, not the depreciated worth of the car before the accident. Typically this coverage cannot be added to used cars, demo cars or new cars which have substantial mileage (this can vary by insurance company).
This form usually applies for the first 24 months after purchase date or until a certain KM limit has been met. You must be the original purchaser and the damage to the vehicle must occur while the policy is in force, not after the expiry date. If you are planning on purchasing a new car, speak with your insurance broker to find the best coverage to suit your needs.