Automotive Opt-Outs: Ontario drivers can now opt out of direct compensation property damage coverage insurance

Toronto, Ontario — Ontario drivers are now able to opt out of direct compensation property damage (DCPD) insurance as part of a wider multi-year insurance strategy first announced in 2019 by the Ontario government.

DCPD coverage is designed to protect car owners from costs related to vehicle damage from a collision if they are not at fault. However, without this coverage, drivers will not be reimbursed for vehicle repairs, loss of a vehicle or its contents, or a replacement vehicle, among other factors.

“If the described vehicle is damaged in a collision the loss will not be compensated even if you are not at fault,” the opt-out form specifically warns.

“You will not be compensated by this insurance policy or by anyone else, including anyone at fault for causing the damage or their insurance company,” the form further notes.

This change is part of a wider strategy made by the province to help with increased discount options, rate regulations and future eclectic-proofing insurance.

While not opting into the coverage could present larger expenses for a driver in the event of a collision, the change could be useful for drivers of older cars that are worth less than the cost of their insurance.

However, Morgan Roberts, director of RH Insurance, originally told CTV News Toronto that the average driver is not likely to gain significant savings by opting out of the coverage and so, drivers should think carefully about their personal circumstances and options before making a decision.


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