Get Cheap DCPD Car Insurance Quotes

How does DCPD work?  

After an accident, insurance adjusters acting on behalf of your insurance company get to work figuring out who or what caused the collision.

The provincial government sets the framework adjusters use to make their final determination (see Ontario's fault determination rules).

According to the provincial framework, you can be 0%, 25%, 50%, 75%, or 100% responsible for an accident.

Once fault is decided, your insurance will determine what type of settlement you will receive.

If you are 100% not at fault, your insurance will typically cover all your costs.

If you are partially responsible for the accident, you may be able to draw on your DCPD coverage. However, you'll have to pay a deductible.

Your insurance company will multiply the loss expense by the percentage you weren't responsible for. Then, your insurer multiplies your deductible by the percentage you weren't at fault for. The loss expense is subtracted from the deductible. The total is the settlement you'll receive.

Here's an example from Ontario Owner's Policy (OAP 1):

• Your car has a cash value of $12,000.
• You are involved in an accident, and your car is a total loss.
• The insurance determines you are 25% at fault for the accident.
• Your DCPD deductible is $300

That means:

• 75% of $12,000 is $9,000 (12,000 x 0.75)
• 75% of $300 is $225 (300 x 0.75)
• $9,000 - $225 = $8,755

You will receive $8,755 from your insurance company after you pay $225.

You can qualify for DCPD even if a friend or relative was driving the car.

Is direct compensation property damage mandatory? 

DCPD is mandatory in most provinces where it's available.

Provincial governments introduced DCPD to simplify the claims process. Before DCPD was part of standard coverage, insurance companies would have to pursue each other to recover damages, which meant that the people hurt in a crash endured longer wait times for restitution. Under today's regulations, your insurance company pays your DCPD settlement immediately.

Ontario is an exception to the rules. Starting in 2024, DCPD will still be included in a standard insurance policy, but Ontario drivers who wish to lower their premium can remove it. However, they'll have to use their own money to repair or replace their car — even if they didn't cause the collision. They will also be prohibited from suing for repairs.

If you're looking to cut your insurance bills, insurance professionals recommend finding other ways. Most drivers likely need help to afford to repair or replace their car.

Is there a deductible for direct compensation and property damage coverage? 

If you’re 100% not at fault for an accident, there is usually no deductible.

You may have to pay a deductible if you’re between 25% to 75% responsible.

A deductible is the amount you agree to pay toward the cost of a claim you make under this section of your policy. You can find your deductible amount in your automobile policy.

You must pay it each time you file a claim under your DCPD coverage. The deductible amount is multiplied by the percentage you were not at fault.

If your car and its contents are damaged, the deductible is first applied to the automobile loss. If there’s any remaining deductible, it’s used towards the contents loss.

You can’t sue to recover the deductible.

What’s the process of filing a DCPD claim after an accident? 

You can claim DCPD coverage if you're involved in a collision with one or more cars.

You must file a claim with your insurance company within seven days of the accident. Be sure to have as much information as possible about the circumstances of the accident and the losses.

In the immediate aftermath, protect your car from further damage. It will make it easier for insurance adjusters to inspect your car and prevent further damage to your car (which won’t be covered). Store your car somewhere safe. If your claim is approved, DCPD coverage will reimburse you for storage.

Make no repairs beyond those needed for protection or remove evidence of the damage without your insurance company’s written consent or until they’ve inspected the vehicle.