In Ontario, all drivers are legally required to carry valid auto insurance whenever they operate a vehicle. Beyond the mandatory coverage, various optional endorsements, known as Ontario Policy Change Forms (OPCFs), allow drivers to tailor their insurance policies to suit their individual needs better. These auto insurance endorsements can enhance coverage, providing additional protection and peace of mind on the road. Let’s look at the most common auto insurance endorsements available to Ontario drivers.
Understanding Mandatory Auto Insurance Coverage in Ontario
A standard Ontario auto insurance policy includes the following mandatory coverages:
Third-Party Liability Coverage: This protects you if you’re held legally responsible for injuring someone or damaging another person’s property.
Statutory Accident Benefits Coverage: Provides benefits if you’re injured in an automobile accident, regardless of who is at fault. This can cover medical expenses, rehabilitation, income replacement, and more.
Direct Compensation Property Damage (DCPD): Covers damage to your vehicle or its contents when another driver is at fault, provided the accident occurs in Ontario and involves at least one other vehicle insured by an Ontario-licensed insurer.
Uninsured Automobile Coverage: Protects you and your family if you’re injured or killed by an uninsured driver or in a hit-and-run incident.
Click the link to our blog to learn more about how your auto insurance premiums are calculated.
What are Auto Insurance Endorsements?
In Ontario, endorsements are referred to as Ontario Policy Change Forms (OPCFs). Also known as a “rider”, an endorsement is an extra form of coverage. You can purchase them to ‘add-on’ to your existing policy. All types of insurance policies have limits and exclusions around insured perils and amount of coverage. Depending on your demographic, location or vehicle needs, you can take advantage of certain auto insurance endorsements to provide more custom coverage.
An insurance endorsement gives you more flexibility to customize your coverage by allowing you to:
- Increase or decrease coverage limits.
- Deduct certain parts (in allowance by law) to lower the total premium amount.
- Change your personal information.
- Make other special amendments to restrict or expand certain terms covered by your car insurance policy, giving you more flexibility.
FYI: An endorsement is an optional addition that provides extra coverage for an additional fee or waives coverage for specific situations. It is legally binding.
Exploring Optional Auto Insurance Endorsements (OPCFs)
Here are a few examples of the most common Ontario auto insurance policy endorsements:
1. OPCF 20: Loss of Use (Coverage for Transportation Replacement)
This endorsement covers the cost of a rental vehicle, taxi, or public transportation if your car is being repaired or replaced due to a covered loss. It’s particularly beneficial if you rely on your vehicle daily and want to avoid out-of-pocket expenses for alternative transportation. You must already have either collision coverage, comprehensive coverage or specified perils coverage. It’s important to note that the damage or loss must be caused by an insured peril listed in your policy. In other words, if you don’t have comprehensive car insurance and your car is stolen, this insurance endorsement won’t help you.
2. OPCF 27: Liability for Damage to Non-Owned Automobile(s)
This auto insurance endorsement (only valid in Canada or the U.S.) offers liability coverage and Accident Benefits when you drive vehicles that you don’t own, such as rental cars or borrowed vehicles. This can save you from purchasing additional insurance from rental companies, known as a “collision damage waiver” or “rental vehicle insurance endorsement.” They typically sell it as an optional add-on.
Bonus tip: Here are more tips from Economical Insurance for saving on your next vehicle rental.
3. OPCF 39: Accident Waiver / Accident Forgiveness
With this auto insurance endorsement, your first at-fault accident won’t result in an increase in your insurance premiums upon renewal. However, the at-fault collision will still appear on your driving record, which may affect future insurance applications.
4. OPCF 43: Removing Depreciation Deduction
As soon as you drive a new car off the lot, it starts depreciating in value. This endorsement ensures that you receive the full value of your vehicle without depreciation deductions if it’s damaged beyond repair or stolen. It’s typically available for new vehicles and is valid for a specified period, often up to 24 months from the purchase date. It makes the most sense, as your car’s full value is still quite high during this period. Your vehicle must also be totally brand new (i.e. no previous owners and no previous repairs). Without it, you may find yourself without enough money to buy a new vehicle, should you need to.
5. OPCF 44R: Family Protection Coverage
OPCF 44R provides additional coverage if you’re involved in an accident with an underinsured or uninsured driver. It ensures that you and your eligible family members are protected up to the limits of your own third-party liability coverage.
6. Minor Conviction Protection
Minor Conviction Protection safeguards you against rate increases due to minor traffic violations. Like the Accident Forgiveness endorsement, it only applies to your first conviction and you must have held a valid driver’s licence for at least six years. Additionally, you must not have any convictions in the previous three years.
You must apply for this endorsement from your current insurer. With this auto insurance endorsement in Ontario, you are protected from a rate increase if you commit a minor traffic offence, such as:
- Failure to signal before changing lanes (which is a serious offence)
- Disobedience to a traffic sign
- Speeding
7. OPCF 16 & 17 – Suspension and Reinstatement of Coverage
If you’re not planning on driving your car for a long period of time, you might wonder if you can put a temporary hold on your insurance. While most insurance companies do not allow you to temporarily suspend your insurance, they may allow you to temporarily reduce your coverage. In order to do this, you’ll need two Ontario Policy Change Forms to complete the process.
OPCF 16: Allows you to suspend certain coverages when you’re not using your vehicle for an extended period, such as during winter storage.
OPCF 17: Reinstates the suspended coverages when you’re ready to use your vehicle again.
Making Informed Decisions About Your Coverage and Auto Insurance Endorsements
When considering optional Ontario auto insurance endorsements, it’s essential to assess your driving habits, vehicle usage, and personal circumstances. Consulting with an experienced insurance broker, like isure, can help you determine which OPCFs align best with your needs, ensuring optimal protection and value.
After making a policy change, always maintain a copy of the new document that demonstrates or specifies the new endorsement. When an endorsement lowers or raises your coverage, it can affect your premium. Even if you’re on a tight budget, most auto insurance endorsements in Ontario will only add a few dollars to your monthly bill. Therefore, it’s definitely worth looking into your options to see if there’s one that’s right for you. If your premium increases and you don’t have an endorsement to protect you against it, isure will research rates to be sure you’re still getting the best deal.
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