Are you a driver who prides yourself on having a clean driving record? Have you been accident-free for the last six years? If so, you may qualify for an OPCF 39 Accident Forgiveness endorsement or rider. We detail this endorsement below and explain how OPCF 39 Accident Forgiveness can help protect your driving record after an accident.
What is OPCF 39 or ‘Accident Forgiveness’?
Accidents happen every day. Some aren’t your fault, and others are. When an accident is your fault, it can erase all those years of accident-free driving. That is unless you have accident forgiveness. The OPCF 39 endorsement will protect your premium during your first at-fault collision. It is commonly known as accident protection or accident waiver. Your premiums will not increase due to an insurance claim if you remain with the same insurer. It is an extra form of coverage you can purchase and tack onto your insurance policy.
How does OPCF 39 work?
OPCF 39 endorsement is an agreement not to recover from loss or damage from an auto collision. Essentially, this endorsement prevents a policyholder from recovering damages from another insured person under the same policy. It is prevalent when multiple vehicles insured under the same policy are involved in an accident. So, if OPCF 39 is in place, the policyholder waives the right to claim the damages from the insurer for the at-fault driver under the same policy. Businesses or families with multiple insured vehicles can often use it to help avoid intra-policy claims. It is also essential to know that this endorsement applies specifically to collision-related vehicle damage and does not affect personal injury claims.
What does OPCF mean when it comes to Ontario insurance?
An Ontario Policy Change Form (OPCF) is an optional endorsement that lets you adjust your auto insurance coverage based on specific circumstances. It allows you to increase, decrease, or modify the coverage on your current policy, ensuring you have the proper protection to meet Ontario’s driving requirements.
It is important to remember that OPCF 39 is specific to Ontario, and each region will have its own nuances. Other provinces have similar endorsements, but they would be under different names. However, some provinces do not offer this endorsement because of their government-controlled systems.
- Quebec: Q.E.F. 38
- Alberta: SEF 101 (Public Passenger Vehicle Endorsement)
- British Columbia: Generally does not offer this endorsement
- Manitoba: Generally does not cover this endorsement
- Saskatchewan: Generally does not offer this endorsement
While most providers use the term “Accident Forgiveness” to describe OPCF 39, it is worth noting that a small number of insurance companies do not. For example, both Aviva and CAA, both of which are on our list of trusted providers, use different terms.
- Aviva: Driving Record Protector
- CAA: Forgive and Forget
Why do I need the OPCF 39 endorsement? Is Accident Forgiveness necessary?
If you have a clean driving record and are involved in your first at-fault collision, this endorsement provides a one-time amnesty or a free pass. This means the accident won’t affect your driver rating, and insurance premiums won’t increase. However, this endorsement only protects you if you stay with the same insurance company. If you switch to another insurer (while this insurance endorsement is in use) and apply for a new policy, your rates may rise.
Minor accidents and fault determination rules
In Ontario, the Insurance Act prevents insurers from increasing premiums for minor at-fault collisions with a few stipulations:
- The damage must be less than $2,000
- There are no injuries
- No payouts made by the insurer
- This is inclusive of all accidents that occurred in July 2016 or later
- This provision has limits to one minor accident every three years, according to the Financial Services Regulatory Authority.
After an accident, insurers in Ontario’s no-fault insurance system use the province’s fault determination rules to determine who is responsible for a collision. These guidelines outline if you will receive blame in various scenarios. If you are allocated more than 25% of the fault, you may see an increase in premiums at renewal for damages over $2,000. Accident forgiveness provides policyholders with a buffer layer of protection from their first at-fault accident. However, you can only use it for one incident.
How long does OPFC 39 last on a policy?
The Accident Forgiveness endorsement lasts as long as the policy is active or until its removal is requested. If you keep the same auto insurance policy, OPCF 39 is typically renewed with your policy. A policy’s renewal varies but typically occurs every 6 to 12 months. The policy remains intact if you do not change insurance providers or cancel your coverage.
Will an OPCF 39 rider protect my driving record?
If you are found to be at fault for an accident, adding this endorsement means your insurer will forgive you for the collision. They will not increase your premiums. However, although your premium won’t increase, the collision remains on your driving record for six years. Also, not all insurers offer their policyholders the option to buy an accident forgiveness rider for their policies.
What are the criteria for adding Accident Forgiveness to my policy?
As with any endorsement, you can contact your isure broker to add or remove coverage from your policy. However, an Accident Forgiveness rider must be added to your policy before an at-fault accident occurs. It will only protect the principal driver of the vehicle on the insurance policy, who has a clean driving record. Here is a list of more criteria for adding OPCF 39 to your policy.
Standard Auto Policy: To apply, you must have a valid auto insurance policy in Ontario.
Approval from Insurance Provider: Your insurer must allow Accident Forgiveness to be added to your policy.
Voluntary Agreement: When adding OPCF 39 to your policy, you must agree to waive your right to sue for damages in the event of an at-fault accident.
Mutual Consent (if required): In some cases, both parties involved in the accident must have OPCF 39 added to their policy for it to apply.
Does OPCF 39 apply to all vehicles?
Accident Forgiveness coverage applies per-vehicle basis, including cars, trucks, motorcycles, and motorhomes. It must be added annually when renewing a policy or switching to a different insurer.
What are the benefits of Accident Forgiveness on a policy?
Here are some benefits of adding OPCF 39 to your insurance policy:
- Prevents Rate Increases: When you get into an at-fault accident, the rate of your premium increases. However, with Accident Forgiveness on your first at-fault accident, your premium will not increase. Therefore, you will save money in the long run.
- Long-Term Savings: Without Accident Forgiveness, an at-fault accident could raise your insurance premium for several years. However, this feature helps to avoid those extra costs.
- Benefits Vary by Insurer: Some insurers may not count the covered accident when determining future rates. Plus, some companies offer it as a free benefit to safe drivers, while others may require it to be purchased as an add-on.
- Peace of Mind: When driving, knowing that one mistake won’t lead to immediate financial penalties can help to reduce stress while driving.
When would Accident Forgiveness not apply?
However, an Accident Forgiveness endorsement will not apply if:
- You’re convicted of a Criminal Code offence about an accident, such as Driving Under the Influence (DUI).
- If your record has a significant conviction, like driving without insurance.
- If you switch companies, forgiveness may not apply, and your new premium will reflect the accident.
- Please remember that license suspensions, existing at-fault accidents, and/or cancellations for non-payment may affect your eligibility.
What doesn’t this endorsement cover?
Accident forgiveness in Ontario won’t shield you from:
- Serious driving convictions.
- Any secondary or additional collision(s) you are in after the first one.
- Demerit points are added to your driver’s license due to a conviction.
- An accident while driving a business or commercial vehicle.
Insurers may have different rules governing whether they will add an accident forgiveness clause to your auto insurance policy. Most insurers will generally insist your driving record is free of collisions for six years, or they will not add this rider to your policy.
FAQs for Accident Forgiveness in Ontario
How much does it cost?
The cost of adding the OPCF 39 endorsement to your auto insurance policy typically ranges between $30-$40 per year. However, it is essential to know that prices can vary depending on your insurance provider and circumstances. You should consult your insurance provider to get a more exact quote for your situation.
How do you add OPCF 39 to your policy?
First, you must contact your insurance provider and confirm that they offer the endorsement. Do any necessary research to see if it is the right addition to your policy. Then, get a quote for your policy and review the pricing while considering if it aligns with your needs. Once you sign the proper consent and documentation, you will receive a policy update reflecting the change.
What other auto insurance endorsements are available?
There are many different optional endorsements you can add to your insurance policy. Read our blog to learn more about finding the right auto insurance endorsements. Additionally, learn more about the difference between AF coverage and Minor Conviction Protection.
You may qualify for an Accident Forgiveness endorsement if you have been accident-free for six years. Please contact one of our isure representatives today to discuss this add-on endorsement to your policy and reap the benefits of a clean driving record.
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