If you use borrowed or rental vehicles regularly, you’re not alone. The cost of owning a car is cost-prohibitive for many people these days. Many Ontarians rely on rentals to get to work, school, or to complete a variety of other tasks. However, what you may not know is that your current auto policy may not cut it if you get into an accident. If you don’t have the right policy or endorsement, you will likely have to pay for any repairs or injury-related expenses out of pocket. That’s why numerous drivers across the province of Ontario purchase a unique endorsement called OPCF 27.
What is An OPCF 27 Endorsement?
The Liability for Damage to Non-Owned Automobile(s) endorsement, or OPCF 27, is an optional add-on endorsement to an Ontario auto insurance policy that provides coverage to a vehicle that you are operating but do not own. This applies if you have a rental car or have borrowed a vehicle from a friend or family member. In the event of an at-fault accident, this endorsement covers the costs to repair the non-owned vehicle, providing financial protection for situations such as renting a vacation vehicle or borrowing a friend’s car.
What Does An OPCF 27 Cover?
This endorsement will provide you with an impressive amount of coverage:
- OPCF 27 includes a type of car insurance, known as full coverage. It’s a policy that has comprehensive and collision insurance.
- Comprehensive insurance—protects you from a variety of risks that are out of your control. This includes theft, vandalism, and damage caused by unforeseen weather conditions, like wind or hail.
- Collision insurance—protects you after getting into an accident that causes property damage (i.e., unintentionally side-swiping another vehicle in a parking lot).
- If you have an OPCF 27 endorsement, you have access to accident benefits and third-party liability coverage.
- Accident benefits coverage— coverage for injuries sustained by you, your passengers, or bystanders during an accident.
- Third-party liability coverage— covers losses sustained by third parties in a collision or accident (not the driver).
Theft: While not always included, coverage for theft may be extended to a non-owned vehicle if you already have comprehensive coverage on your own policy
In addition to:
- Physical Damage to Non-Owned Vehicles: It extends your policy’s physical damage coverage to automobiles you are driving but do not own, like rental cars or borrowed vehicles.
- At-Fault Accidents: The coverage applies to the damage of a non-owned vehicle when you are the at-fault party in an accident.
- Uninsured Automobile insurance
- Direct-Compensation Property Damage coverage in specific circumstances.
How Much Does OPCF 27 Cost?
On average, this add-on typically costs about $50 a year. The daily rental fees charged by car rental companies can add up quickly; therefore, this endorsement is still a more affordable option. Most rental car agencies charge as much as $60 a day for temporary coverage.
Do You Need OPCF 27 in Ontario?
No. By law, an OPCF 27 isn’t an insurance requirement. In fact, drivers should be aware that they can legally borrow a family member’s vehicle for a short period of time without obtaining additional coverage. However, if you plan to borrow or rent a car for several days or weeks, driving without the OPCF 27 endorsement is not recommended.
Who Should Consider An OPCF 27
An OPCF 27 is a cost-effective option for drivers who frequently use vehicles they don’t own.
- Frequent car renters: With OPCF 27, you can decline the costly collision damage waiver (CDW) offered by rental companies.
- Drivers who borrow vehicles: If you regularly borrow a friend’s or family member’s car, this endorsement can protect their insurance policy from being affected by a claim you file.
- Business travellers: For those who rent cars for work, OPCF 27 is an alternative to relying on expensive commercial rental insurance.
Important Limitations
If you plan on renting a car while on holiday or here at home, there are several requirements for OPCF 27 and some limitations that you should know when renting a car:
- Coverage limit: Protection is capped at a specific amount, which can vary by insurer, but is often between $25,000 and $50,000.
- Rental duration: Rental car coverage is typically limited to a period of 30 days or less.
- Vehicle weight: It generally only applies to standard passenger vehicles weighing less than 4,500 kg.
- Commercial use: Coverage for business-related rentals may fall under a different endorsement, OPCF 27B, and has separate conditions.
- Credit card vs. OPCF 27: Some credit cards offer rental car insurance, but OPCF 27 often has higher coverage limits and extends your liability, which many credit cards do not.
Will This Endorsement Cover Me in the US?
An OPCF 27 rider provides you with comprehensive insurance and collision insurance if you damage a rental or borrowed vehicle. Your third-party liability and accident benefits will apply to rented or borrowed vehicles. It only applies when driving in Canada or the United States.
What is the Difference Between OPCF 27 and OPCF 27B?
OPCF 27B is for business operations. It is also known as Liability for Damage to Non-Owned Automobiles In Your Care, Custody or Control. It protects businesses and business owners when renting or using other commercial auto insurance and equipment.
If you want to learn more about this unique car insurance add-on, then please get in touch with one of our isure representatives to help you decide if an OPCF 27 makes sense for your driving needs!
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