If you are planning to rent or borrow a car in Ontario, then you might have to deal with an insurance endorsement called OPCF27. To provide the most accurate information for this article, our team reviewed the OPCF 27 form published by FRSA, which spells out exactly what is and isn’t covered, and we also pulled rates from our quote database to check how much adding this endorsement may cost you.
This guide will explain what OPCF 27 covers, its limitations, how much it costs, and whether it is worth getting it for your rental vehicle.
What Is an OPCF 27 Endorsement?
This endorsement is an optional add-on that extends your existing auto insurance coverage to vehicles you don’t own (i.e. rental cars or borrowed cars). It’s also known as Legal Liability for Damage to Non-Owned Automobiles. It extends your insurance coverage to cars you rent or borrow.
How It Works
This endorsement works like a regular insurance policy. If you get in an accident, you can contact your insurance company to make a claim. From there, your insurer will guide you through the claims process until you get the coverage available under your policy.
Read More: Am I Insured Driving Somebody Else’s Car?
How Much Does OPCF 27 Cost?
On average, the OPCF 27 endorsement costs around $24 per year in Ontario, making it a moderately priced add-on that won’t significantly impact your car insurance premium. Ask your insurer for more details about the pricing.
What it Covers
An OPCF 27 endorsement extends your insurance policy to rented or borrowed vehicles. If the rental or borrowed car is damaged while in your care, custody, or control, OPCF 27 covers your legal liability for that physical loss or damage on whichever perils you carry (comprehensive, collision or upset, specified perils, or all perils), subject to a deductible and a per-occurrence limit.
This is the piece that replaces the rental counter’s collision damage waiver. Separately, it extends the liability, accident benefits, uninsured-automobile and direct-compensation coverages already on your policy to the vehicles you drive, rent, or lease.
Conditions and Limitations of OPCF 27
OPCF 27 does have some limits and conditions, so it’s not complete protection for rental and borrowed vehicles. Here are the conditions and limitations of OPCF 27 protection:
- OPCF 27 only protects the drivers listed on your car insurance policy.
- OPCF 27 protection has a 30-day time limit for rental cars.
- OPCF 27 has a limited coverage amount. Limits range from $25,000 to $50,000.
- OPCF 27 only applies to standard cars weighing under 4500 kilograms. (This is the vehicle’s gross vehicle weight rating, or GVWR)
Is it Mandatory?
An OPCF 27 is not a part of the mandatory coverage package needed to drive in Ontario. You can even legally borrow a friend or family member’s car for a short drive without getting extra coverage.
It is worth considering if you rent cars often or plan to do so for a long time. The longer you drive a car, the higher your chances of getting in an accident. In that case, you’ll be glad you took an OPCF 27 before renting the car.
Are There Alternatives to OPCF 27?
There’s an alternative to OPCF 27 when renting vehicles, called credit card rental car insurance. Many credit card companies offer rental car insurance with extensive coverage that may include protection from:
- Theft
- Vandalism
- Physical damage
- Injuries
- Loss of rental car
Moreover, credit card rental car insurance costs are added to your credit card bill. You don’t have to make separate payments, so it’s more convenient.
However, you should compare your credit card company’s rental car insurance and OPCF 27. Research each option and pick whichever one comes with better protection for your situation. Read our guide about rental car insurance to learn more.
Differences Between OPCF 27 and OPCF 27B
OPCF 27 and OPCF 27B sound similar but have different uses. OPCF 27 is made for personal-use cars, while OPCF 27B is for commercial and business drivers.
Is it Worth Getting OPCF 27 for Car Rentals?
Yes, it is worth it. Even if you only rent a car once a year, OPCF 27 often costs less than buying the rental company’s waiver, since rental companies charge daily for car insurance. Some car rental agencies can charge $60 a day for temporary insurance. If you’re renting a car for multiple weeks, paying for OPCF 27 is usually cheaper.
A worked example makes the trade-off concrete. Say you rent a mid-size car worth about $35,000 and the counter offers a collision damage waiver at roughly $25–$30 a day. On a two-week trip, that waiver alone runs about $350–$420 — more than a full year of OPCF 27 on most policies. The catch is the limit: OPCF 27 caps damage coverage (commonly $25,000–$50,000), so if you routinely rent vehicles worth more than your limit, buy up to the higher end or keep the counter waiver for that trip. Match the limit to the value of the cars you actually rent, not to the cheapest option.
Paying for OPCF 27 makes more sense if you rent cars frequently. Instead of shelling out hundreds of dollars every time you rent a car, you can pay $50 and not have to think about car insurance for the entire year.
Will I Be Covered in the United States?
Yes, OPCF 27 covers you in the United States. The endorsement follows the territorial scope of your underlying Ontario auto policy, which applies in Canada and the United States (and travel between them).
If you are travelling to the United States, you should keep proof of the endorsement with you, confirm the rental agreement doesn’t void your coverage (for example, some prohibit certain drivers or cross-border use), and remember that liability limits that feel adequate in Ontario can be low for a US at-fault claim. It is recommended to consider higher liability limits before you travel.
Before your next trip, ask your broker to confirm OPCF 27 is on your policy and what its damage limit is. Then compare that limit to the value of the cars you typically rent. If the limit comfortably covers them, you can decline the rental counter’s collision damage waiver and pocket the daily fee. If it doesn’t or you’re renting something expensive or exotic, top up the limit or keep the counter coverage for that one trip. Either way, carry proof of the endorsement, because the savings only help if you can show you’re covered.