Living in a city like Toronto, Ottawa, or Hamilton often means relying on public transit, ride-sharing, or walking instead of owning a vehicle. However, borrowing or renting a car sometimes becomes necessary—whether for a weekend getaway, a business trip, or running errands. But what happens if you’re in an accident while driving a car you don’t own? Does the vehicle owner’s insurance cover you, or are you exposed financially? That’s where non-owner car insurance in Ontario comes in. This coverage protects occasional drivers who don’t own a vehicle but still get behind the wheel. Below, we answer some of the most common questions about non-owner car insurance and how it works in Ontario.

What is Non-Owner Car Insurance in Ontario?

Non-owner car insurance isn’t a standalone policy. In Ontario, an endorsement called OPCF 27 is added to your current auto insurance policy. It extends your liability coverage when driving a vehicle you don’t own (e.g., a rental car or a friend’s vehicle).

Does the law require OPCF 27?

No. It’s optional and only available as an add-on to an existing Ontario auto insurance policy. You can’t purchase it on its own.

Who Should Consider Non-Owner Car Insurance?

Non-owner car insurance is beneficial for individuals who:

Frequently rent vehicles
Regularly borrow cars from friends or family
Use car-sharing services

It’s unnecessary for those who own a car, share a household vehicle, or rarely drive non-owned vehicles.

How do you add non-owner auto insurance to your current car policy in Ontario?

Form OPCF27 can be added to an existing car insurance policy as an endorsement for coverage of rented or borrowed cars.

Should I get non-owner auto insurance if I borrow a family member’s car?

If you often borrow the car of your spouse, parent, or other household member, there’s no need for a non-owner insurance policy. Instead, consider adding your name as a listed driver to their policy. Most insurance providers require family members who drive the exact vehicle to be listed on the car owner’s policy.

If I use my friend’s car regularly, should I get non-owner auto insurance?

If you frequently borrow or rent cars, you should rethink your need for car ownership. Weigh up the cost of rental car fees, insurance waivers, and the inconvenience of trying to locate a car when you need one. It may make more financial sense for you to own in the long run. If you are considering owning a car and having car insurance, remember that the added costs are offset by increased coverage and convenience. If you don’t need to own a vehicle, a non-owner insurance policy will benefit you greatly if you get into an at-fault accident.

Will my car insurance be impacted if my friend gets into an accident with my car?

Your auto insurance policy provides coverage for anyone who drives your car as long as they are legally allowed to drive in Canada. They must also have your explicit permission to use your vehicle. If you lend your car to a friend who ultimately gets into an accident, your insurance policy will cover the damages. That said, your premiums will likely increase after filing a claim.

Can I insure a vehicle if I am not the registered owner?

Only the registered owner can insure the vehicle because they have a financial interest. However, the registered owner may list someone else as the principal operator of the car. This might be a spouse, child, or someone else listed as a driver in the household.

Is OPCF 27 expensive?

It’s usually affordable, often under $50–100/year, depending on your insurer and driving history.

Does a credit card cover me when I rent a car?

Many premium credit cards offer collision and theft coverage on rentals. However, they don’t include liability coverage, which is where OPCF 27 comes in handy.

Is there a recent change in how non-owner insurance works?

While the basics of OPCF 27 haven’t changed, Ontario’s insurance system has seen some reforms:

DCPD (Direct Compensation for Property Damage) became optional in 2024.
Accident benefits will become more customizable by 2026. These changes don’t directly impact OPCF 27 but affect overall auto insurance planning.

Where can you purchase this type of insurance in Ontario?

Ontario does not allow non-owner insurance policies to be purchased as a standalone product. Instead, you must have an existing auto insurance policy to add non-owner car insurance. Also known as “legal liability” for damage to a non-owned vehicle, Form OPCF27 is an endorsement (or add-on) that can enhance coverage on an existing policy. According to the FSCO website, it “provides physical damage coverage to vehicles that you may operate but do not personally own, such as a vehicle that you have rented or borrowed.”

The OPCF27 form also allows you to use your third-party liability and accident benefit coverage from your policy on the car you’re driving. If you should ever get into an accident in a vehicle you don’t own, you’ll have collision and comprehensive coverage, so you won’t have to pay all damages out-of-pocket.

Non-Owner Coverage: Conclusion

Borrowing or renting vehicles can help make life easier, but it is essential to make sure that you have the appropriate insurance coverage in case of an emergency. With non-owner car insurance, you can rest a little easier knowing that if you are involved in an accident, you will have ample coverage on the rented or borrowed car. Many insurance companies offer non-owner insurance policies; you must know where to look. Please get in touch with your isure broker if you have questions about non-owner car insurance policies and whether they are the right choice.