Public Liability and Property Damage (PLPD) informal term commonly used to describe basic auto insurance protection in Ontario. Drivers are sometimes told that they “only need PLPD,” or also told that it is the cheapest coverage option. That could make you confused about what exactly PLPD insurance includes and what it doesn’t. For this guide, we reviewed Ontario’s Compulsory Automobile Insurance Act, the Insurance Act, the Statutory Accident Benefits Schedule, FSRA’s current Ontario Automobile Policy and July 1, 2026 reform guidance.
Read on to learn how the PLPD naming relates to Ontario’s mandatory coverages, optional physical-damage protection, DCPD and policy endorsements.
What’s Included in PLPD Coverage?
Ontario requires at least $200,000 in third-party liability coverage, uninsured-automobile coverage and mandatory accident benefits. As of July 1, 2026, medical, rehabilitation and attendant-care benefits remain mandatory for new or renewed policies; income replacement and several other benefits are optional.
Here’s a breakdown of PLPD coverage:
| Coverage | Mandatory or Optional | Coverage Details |
|---|---|---|
| Third Party Liability – Bodily Injury | Mandatory | Covers injury or death to other people if you’re at fault in an accident. |
| Third Party Liability – Property Damage | Mandatory | Pays for damage to someone else’s property that you caused in an accident. |
| Direct Compensation – Property Damage | Optional (via OPCF 49) | Covers damage to your vehicle when another driver is at fault. |
| Accident Benefits | Mandatory | From July 1, 2026, mandatory accident benefits include medical, rehabilitation and attendant care; income replacement and several other benefits are optional for eligible insured people |
| Uninsured Automobile Coverage | Mandatory | Protects you if an uninsured or hit-and-run driver hits you. |
What PLPD Does Not Cover
The PLPD label itself does not confirm what your policy covers, so do not rely on it. Check your policy documents for details like your liability, uninsured automobile, accident benefits, DCPD status, and optional loss-or-damage coverage.
Here are some situations not covered under PLPD, and the specific policies and endorsements you may need to be covered in these scenarios:
| Scenario | Recommended Coverage | Coverage Details |
|---|---|---|
| Your vehicle is damaged in an accident where you’re found at fault. | Collision Coverage | Pays for damage to your car if you’re at fault or involved in a single-vehicle crash. |
| Your vehicle is stolen, vandalized, or damaged by weather. | Comprehensive Coverage | Covers non-collision incidents like theft, vandalism, fire, hail, and falling objects. |
| Injuries or death exceed the third-party liability limit. | OPCF 44 (Family Protection Coverage) | Covers shortfalls if the at-fault driver has insufficient coverage. |
| You want to extend your regular coverage to a rental car. | OPCF 27 (Legal Liability for Damage to Non-Owned Vehicles) | Extends your coverage to rental or borrowed vehicles. |
| The described automobile is unavailable after an insured loss while it’s being repaired or replaced. | OPCF 20 (Coverage for Transportation Replacement) | Pays for rental while your car is being repaired or replaced. |
| You want to protect your car’s replacement value from depreciation. | OPCF 43 (Removing Depreciation Deduction) | Removes specified depreciation deductions for an eligible new vehicle. |
| You need extra coverage for yourself or your family members. | OPCF 29 (Additional Coverage For Named Person(s)) | Adds only the selected liability, loss-or-damage coverage or endorsements shown for the named person while operating an automobile under the form. |
Why It’s Not Recommended to Remove Direct Compensation Coverage
As of January 1, 2024, drivers in Ontario have had the option to opt out of Direct Compensation-Property Damage (DCPD) coverage by using OPCF 49. However, most insurance brokers strongly advise against it.
Before opting out, check the reasons to keep DCPD on your policy:
- By signing OPCF 49, the insured gives up specified DCPD recovery for vehicle damage, towing, storage and loss of use. Other possible rights depend on the circumstances and applicable policy or legal rules.
- You won’t receive compensation for towing, storage, or loss of use of your vehicle after a not-at-fault accident.
- Claims can become complicated and costly, especially if you mistakenly assume you’re covered.
OPCF 49 removes DCPD and the right to recover specified vehicle damage, towing, storage and loss-of-use amounts under that coverage. Savings and potential losses vary; review the signed acknowledgement and your ability to absorb the full cost.
Who Should Avoid PLPD-Only Coverage?
Because PLPD and ‘full coverage’ are informal labels, you should decide based on the specific coverages, limits and deductibles shown on your policy.
Optional physical-damage coverage may be reasonable to self-insure if:
- An older vehicle can still justify physical-damage coverage when replacement would cause hardship or the premium-to-value tradeoff is favourable. Vehicle age should not be the only factor in the decision.
- Drivers who can afford to repair or replace their vehicle out of pocket.
- Low use may affect the quote but doesn’t remove theft, weather, fire or collision exposure. Disclose actual use and compare coverage options.
You should avoid PLPD-only coverage if:
- You rely heavily on your vehicle for daily life or work.
- You can’t afford a surprise repair or replacement.
- Location can affect the premium and risk of a loss, but your decision should also reflect the vehicle’s replacement cost, deductible and your ability to pay for repairs yourself.
- A finance or lease agreement may require specified Collision, Comprehensive or All Perils coverage and deductibles. Verify the contract; ‘full coverage’ isn’t a defined requirement.
Ask for a written summary showing each optional loss-or-damage coverage, peril, deductible and endorsement included in your quote. You’d better choose from the actual financial exposure instead of the label ‘full coverage.’
PLPD Insurance vs. Full Coverage
“Full coverage” is also an informal term. You can use the table below as a reference to show which liability limits, accident benefits, DCPD status, collision, comprehensive or all-perils, deductibles, exclusions and endorsements are included in your policy.
| Features | PLPD Insurance | Full Coverage Insurance |
|---|---|---|
| Third-party liability | Included | Included |
| Accident benefits | Included | Included |
| Uninsured automobile coverage | Included | Included |
| Direct compensation property damage (DCPD) | Optional (can be removed through OPCF49) | Included (recommended) |
| Collision coverage | Not included | Included |
| Comprehensive coverage | Not included | Included |
| Vehicle protection from damage caused by you | No | Yes |
| Cost | Lower premium | Higher premium |
| Ideal for | Only after a vehicle-value, financing, deductible, premium and loss-affordability comparison | After reviewing the actual policy schedule. No package guarantees complete protection |
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