If you use borrowed or rental vehicles regularly, you’re not alone. The cost of owning a vehicle 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, provides physical damage coverage to vehicles that you may operate, but do not personally own. This can be a rented or borrowed vehicle, and is subject to a deductible. It also provides Liability, Accident Benefits, Uninsured Automobile and Direct Compensation-Property Damage coverages in specific circumstances. This endorsement financially protects drivers after getting into a car accident in a rented or borrowed vehicle. This type of separate add-on coverage protects you under select circumstances.
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).
How much does it cost in Ontario?
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. But, if you plan on borrowing or renting a car for several days or weeks, driving without the OPCF 27 endorsement is not recommended.
OPCF 27 requirements and limitations
If you plan on renting a car while on holiday or here at home, there are a number of requirements for OPCF 27 that you should know when renting a car:
- Drivers only receive 30 days of coverage at a time
- Coverage is generally capped at $50,000
- Only applies to standard vehicles that weigh less than 4,500 kg
Will it cover me while 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 reach out to one of our isure representatives to help you decide if an OPCF 27 makes sense for your driving needs!