Direct compensation property damage insurance is included in your basic Ontario car insurance policy unless you opt out.
What does DCPD do, and why is it an important part of your policy? Let’s dive deeper and see how DCPD insurance works.
For this guide, our team reviewed FSRA’s official OPCF 49, its claims guidance and the DCPD wording in the current Ontario Automobile Policy.
What Is DCPD?
DCPD covers damage to your car and its contents if another driver is at fault for an accident. It’s called “direct compensation” because your insurer provides the coverage.
DCPD also covers your proportionate share of reasonable loss-of-use costs.
How Does DCPD Insurance Work?
DCPD works in a fairly straightforward way. Instead of dealing with the other driver’s insurer, you make the claim through your own insurance company.
DCPD applies when:
- the accident occurs in Ontario; and
- at least one other identifiable vehicle is insured by an insurer licensed in Ontario or one that has filed the required undertaking with FSRA.
Your insurer applies the Fault Determination Rules and pays according to the percentage you were not at fault.
If you are partly at fault, DCPD addresses the other driver’s share. Collision or All Perils may address your share if you bought that coverage and did not sign OPCF 49.
Read More: See How Ontario Policy Change Forms Work
What Does DCPD Cover?
DCPD doesn’t just cover your car. It also covers damaged contents and reasonable loss-of-use costs.
The amount paid depends on the policy, fault percentage, repair cost, actual cash value and any DCPD deductible shown on the certificate.
DCPD does not cover a single-vehicle crash or unidentified hit-and-run property damage. An identified uninsured driver is handled under Uninsured Automobile coverage, subject to its conditions and limits.
Can You Opt Out of DCPD?
Since January 1, 2024, Ontario policyholders have been able to remove DCPD by signing Ontario Policy Change Form 49, or OPCF 49.
What Does OPCF 49 Remove?
By signing OPCF 49, you’re removing DCPD, Collision or Upset and All Perils coverage for the listed vehicle.
If that vehicle is damaged in a collision, your insurer won’t compensate you even if you are not at fault.
You also give up any right to compensation from the person at fault, their insurance company, the owner of the other vehicle or that person’s insurance company.
If you finance or lease the vehicle, talk to your lender or lessor before signing OPCF 49.
Read More: See How Collision Coverage Works in Ontario
How Much Does DCPD Insurance Cost?
We’ve analyzed 50,000 MyChoice quotes since the beginning of 2026 and found that the average DCPD price on the quoted Ontario policies was $624 per year.
This is an average and may not apply to every vehicle. Ask your insurer for a written quote without DCPD before making a decision.
Should You Keep DCPD?
DCPD is an important coverage after an accident. Before removing it, consider:
- How much do you use your vehicle?
- Could you afford to replace it if it’s totalled?
- Do you still owe money on it?
- How much would you save by removing DCPD?
How Do You File a DCPD Claim?
Report the collision to your insurer within seven days or as soon as reasonably possible after that.
Your insurer’s claims adjuster will review the claim and guide you through the process. You may be asked to complete a proof-of-loss form with details about the accident and damage.
Do not start repairs before the insurer gives instructions.
Ask which Fault Determination Rule applies, the fault percentage and the DCPD deductible. Get disputed decisions in writing.
Read More: Learn More About Car Insurance in Ontario