Many people who live in large cities manage their daily lives without owning a car. Still, occasions will pop up where an errand needs to be run or planning a day trip for your ‘staycation’ requires a vehicle. What then? If you have ever borrowed a friend’s car or rented a vehicle for a trip, have you ever wondered how you will be protected if you get into an accident?
Will you be protected, or will the car’s owner be covered? With non-owner car insurance in Ontario, you will be protected. Let’s delve deeper into non-owner car insurance to help you decide if coverage suits your needs.
Non-Owner Car Insurance: A Breakdown
In Ontario, non-owner car insurance is not a standalone policy but an endorsement known as OPCF 27, or “Legal Liability for Damage to Non-Owned Automobiles.” This endorsement extends the coverage from your existing auto insurance policy to vehicles you rent or borrow. It will also provide liability protection if you’re at fault in an accident. However, it does not cover damage to the vehicle you’re driving; you may need additional coverage, such as a Collision Damage Waiver from the rental company, or rely on credit card benefits.
Simply put, non-owner car insurance is a type of coverage that protects you if you don’t own a car. Non-owner insurance may be right if you regularly borrow, rent, or use car-sharing services (such as Zipcar). Like all drivers in Canada, it is illegal to be behind the wheel of a vehicle without a valid auto insurance policy. So, if you plan to rent a car for your yearly ‘staycation’, remember you must carry an insurance policy with liability coverage. To protect yourself in an at-fault accident, having non-owner car insurance in Ontario can prevent you from paying out of pocket for possible injuries or property damage.
How Does It Work?
In Ontario, non-owner car insurance is officially known as OPCF 27. It extends your existing auto insurance coverage to vehicles you don’t own, including rental cars and borrowed vehicles. Car-sharing services, like Zipcar would also fall into this category. If you’re at fault in an accident, OPCF 27 helps cover injuries to other people, as well as damages to other vehicles and property. However, it does NOT cover damage to the vehicle you’re driving. To cover the vehicle itself, you may need a Collision Damage Waiver (CDW) from the rental company, or you may be covered via credit card rental car coverage.
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Do You Need Non-Owner Car Insurance in Ontario?
You may benefit from OPCF 27 if you:
- Regularly rent vehicles
- Frequently borrow cars from friends or family
- Use car-sharing services
- Want to maintain a continuous insurance history
Important clarification: In Ontario, insurance follows the car first—not the driver. Your owner’s policy is the primary source of coverage for damages. OPCF 27 acts as secondary (excess) liability coverage.
What Is NOT Covered?
Non-owner car insurance in Ontario is fairly inclusive, however there are some common misconceptions regarding coverage. OPCF 27 does not cover damages caused to a borrowed or rented vehicle, theft, vandalism, roadside assistance as well as routine wear & tear damages. This means you could be responsible for thousands of dollars in vehicle damage if you don’t have additional protection.
OPCF 27 vs Rental Car Insurance: What’s the Difference?
| OPCF 27 (Non-Owner Insurance) | Rental Car Insurance (CDW/LDW) |
|---|---|
| Covers liability (injury + property damage to others) | Covers damage to the rental vehicle |
| Applies across multiple rentals or borrowed vehicles | Purchased separately for each rental |
| Costs ~$200–$500 annually | Costs ~$20–$40 per day |
OPCF 27 | Rental Car Insurance |
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Does Your Credit Card Replace Non-Owner Insurance?
Based on common scenarios seen by licensed Ontario insurance brokers, many premium credit cards offer rental car damage coverage—but they typically do not include liability insurance, as coverage limits and exclusions vary. Additionally, not all vehicles or rental periods qualify with credit care rental damage coverage.
Bottom line: Credit cards may replace rental damage coverage—but not liability protection like OPCF 27.
Who Is Eligible for it?
To qualify for OPCF 27, you must have a valid Ontario driver’s license and already carry an auto insurance policy. There are exceptions as to who does qualify for OPCF 27. You may not qualify if you have regular access to a household vehicle. If this is the case, you should already be listed as a driver on that policy as perhaps a secondary driver.
How Much Does Non-Owner Car Insurance Cost in Ontario?
Non-owner car insurance is worthwhile if you often borrow or rent a car. It will usually cost between $200 and $500 annually. It is a reasonable expense, especially given the financial burden of being in an accident without proper insurance coverage. Like any other type of auto insurance, certain factors play a key role in the cost of premiums for non-owner car insurance, including:
Your premium depends on:
- Driving record
- Claims history
- Age and experience
- Coverage limits (e.g., $1M vs $2M liability)
- Insurance provider
For comparison, rental insurance costs $20–$40 per day. So, depending on the length of the rental, it could cost quite a bit of money. For example, just 10 rental days could exceed the cost of OPCF 27.
Is Non-Owner Car Insurance Worth It in Ontario?
Non-owner car insurance is often worth it if you rent cars multiple times per year, frequently borrow vehicles, or if you simply want to avoid gaps in your insurance history. An Ontario driver paying $25/day for rental insurance several times a year would quickly exceed the annual cost of the endorsement.
Provides liability coverage for bodily injury and property damage when driving a non-owned vehicle. Without proper liability coverage, you could be personally responsible for damages exceeding policy limits.
Ontario Insurance Changes: What It Means for You
Ontario has introduced reforms to increase consumer choice.
DCPD Coverage Optional
You can opt out of Direct Coverage Property Damage (DCPD) to lower premiums—but you’ll pay out of pocket for vehicle damage even if you’re not at fault.
Accident Benefits Changes (Starting July 2026)
Many benefits (like income replacement) will become optional.
What this means: Drivers must be more proactive in choosing the right coverage—making liability protection even more important.
Common Questions Regarding Non-Owner Car Insurance in Ontario
Is non-owner car insurance mandatory in Ontario?
No. It’s optional, but strongly recommended if you regularly drive vehicles you don’t own.
Does OPCF 27 cover rental car damage?
No. It only covers liability. You’ll need a Collision Damage Waiver or credit card coverage for vehicle damage.
What Does Non-Owner Car Insurance Cover?
A non-owner car insurance endorsement typically includes a variety of protections for specific situations. Liability coverage offers protection if you cause property damage or bodily harm to others. Accident benefits coverage may cover medical expenses, rehabilitation, or lost income resulting from injuries sustained. Finally, OPCF27 also offers protection if the other driver does not have insurance or if you are involved in a hit-and-run accident.
DISCLAIMER: Please note that non-owner car insurance is not a standalone policy but an additional coverage on your auto policy.
What happens if I crash a rental car without OPCF 27?
You may have limited protection through rental insurance or your credit card, but you could still be personally liable for injuries or damages.
Does insurance follow the car or the driver in Ontario?
Insurance follows the car first. The owner’s policy is primary; your OPCF 27 is secondary.
Is OPCF 27 worth it in Ontario?
Yes, especially if you frequently rent or borrow vehicles. It provides affordable protection against high-cost liability claims.
How much liability coverage should I have with OPCF 27?
Most drivers choose liability coverage between $1 million and $2 million, depending on their risk tolerance.
Does OPCF 27 cover driving in the U.S.?
Typically, yes, but coverage depends on your insurer. Always confirm with your broker before travelling.
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Benefits of Non-Owner Auto Insurance
Borrowing or renting a vehicle can make life easier, but it is essential to ensure you have appropriate insurance coverage in case of an emergency. Non-owner car insurance in Ontario (OPCF 27) is a valuable add-on if you regularly rent or borrow vehicles.
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 need to know where to look. Please contact your isure broker if you have questions about non-owner car insurance policies and whether they are the right choice.
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