What is OPCF 5? It is Ontario’s standard endorsement for a leased automobile. The form permits the lessor to lease the described vehicle and extends specified policy coverage to the lessee as though the lessee were the named insured. It does not guarantee that every lease balance or claim is paid.
For this explanation, our team read FSRA’s two-page OPCF 5 form, its current endorsement summary and the Ontario Automobile Policy.
Keep reading to see what the endorsement changes, what it does not pay and which documents to check before or after a claim.
What Does OPCF 5 Change?
OPCF 5 applies only to the automobile identified on the certificate. It permits the named lessor to rent or lease that automobile to the specified lessee. It also treats the lessee as the named insured for the policy sections listed in the form, within the limits and amounts shown on the certificate.
| Party or document | Role under OPCF 5 |
|---|---|
| Lessor | Owns the vehicle and receives permission to lease it to the specified lessee. |
| Lessee | Receives the policy treatment described in the endorsement as though named insured for specified purposes. |
| Permitted driver | May receive coverage when using or operating the vehicle with the lessee’s consent, subject to the form and policy. |
| Certificate | Identifies the vehicle, coverage, limits, deductibles and premium that apply. |
The endorsement does not create unlimited coverage. It does not guarantee payment of every lease instalment, negative equity or a gap between the insurance settlement and the lease account.
Is OPCF 5 Required for a Leased Vehicle?
OPCF 5 is the Ontario form used to insure the lessor-lessee arrangement. The lease normally requires the vehicle to be insured and the insurer needs accurate ownership and lease details. Confirm the requirement with both the lessor and insurer instead of assuming that the endorsement was added automatically.
Check that the legal names of the lessor and lessee, the vehicle and the effective date match the lease and certificate. If anything is missing or wrong, request a written correction before driving or as soon as the error is found.
Read More: Compare Leasing and Financing a Car in Canada
How Does OPCF 5 Work in a Claim?
Review four documents together: the certificate, OPCF 5, the selected loss-or-damage coverage and the lease. Each answers a different question.
| Document | Question it answers |
|---|---|
| Certificate | Which coverage, limits and deductibles apply to the leased vehicle? |
| OPCF 5 | How are the lessor, lessee and permitted users treated under the policy? |
| OAP 1 and endorsements | Is the cause of loss covered and how is the claim settled? |
| Lease agreement | What contractual amounts or obligations remain after repair or total loss? |
A theft or collision settlement still depends on the coverage purchased, deductible, exclusions, vehicle value and settlement terms. Compare that result with the lease account separately.
How Is OPCF 5 Different From Other Endorsements?
OPCF 23A or 23B addresses a lienholder’s interest in a financed vehicle. OPCF 5 addresses the lessor-lessee relationship for a leased vehicle. Neither form should be described as automatic gap protection.
OPCF 43A can remove a depreciation deduction for an eligible new leased vehicle, while OPCF 20 may cover transportation replacement after an insured loss. Availability, conditions and limits vary. These endorsements solve different problems and are not created by OPCF 5.
Read More: Learn How the OPCF 43 Depreciation Waiver Works
What If OPCF 5 Is Missing or Incorrect?
Contact the insurer and lessor immediately. Explain the error and obtain written confirmation of the correction and effective date. Do not assume that a missing entry produces a particular claim denial or debt amount. The outcome depends on the policy, lease, facts and applicable law.
Read More: See How OPCF 23A and 23B Apply to Financed Vehicles
How OPCF 5 Endorsement Works
OPCF 5 is an endorsement you add to your auto insurance policy when you lease a vehicle. This endorsement names the lessor in your car insurance policy, which means that your insurer recognizes the leasing company’s interest in your vehicle.
While the government doesn’t mandate OPCF 5 for every insured driver, it’s usually required by leasing companies as part of the lease agreement. Having this endorsement on your insurance policy protects the leasing company’s financial interests in case the leased vehicle is stolen, involved in a collision, or otherwise damaged.