DCPD coverage in Ontario
One question many auto insurance brokers get asked is “What am I covered for?” So far we have looked at various coverages within an Ontario auto insurance policy and now we will look at something called DCPD.
Direct Compensation for Property Damage (DCPD) is a mandatory auto insurance coverage within Ontario and it basically means you get direct compensation from your insurance company for damage to your vehicle when in a non-at fault accident with another insured vehicle. DCPD typically has a $0 deductible however it can be increased if you want – but who wants to pay a deductible for a non at-fault accident?!
There are usually four criteria that must be met for DCPD to trigger:
- the accident must be deemed Not At-Fault
- 1 or more vehicles must be involved
- all vehicles must be identified and legally insured
- the accident must have happened within Ontario
There are occasions where a non-at fault accident can not be claimed soley under DCPD – think Hit and Run – in which case there can be a non at fault collision claim. In a 50/50 fault scenario an insured driver would pay 50% of their collision deductible while the other 50% would fall under DCPD. If the fault is 100% at-fault your Collision coverage would activate along with the applicable deductible.
As always if you find yourself confused by your auto insurance wording or if you wish to check on all the coverages you have, or need, on your policy, talk to your insurance broker for more information and advice.
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