Blog & Articles - Gibb Insurance

Changes to Auto Insurance in Ontario

Changes to Auto Insurance in Ontario
The Ontario government recently made changes to auto insurance coverage options, including an update to the Direct Compensation for Property Damage (DCPD) coverage. Starting on January 1, 2024, Ontarians will have the choice to opt out of recovering damages from their insurer under DCPD.

DCPD, also known as Direct Compensation for Property Damage, is a type of coverage that allows your insurance company to cover the costs of repairing or replacing damages to your vehicle and its contents as the result of an accident, regardless of who was at fault.

While DCPD was previously mandatory, it will no longer be a required coverage for personal auto insurance policies in Ontario.

Choosing to opt out of DCPD could save the insured a few hundred dollars a year. This may be a good option for those who own cars that essentially have no value.

If you decide to opt out of DCPD, it means that you will not have insurance coverage to repair or replace any damages to your vehicle and its contents, even if you are not at fault in an accident. This includes having to cover the costs of towing your vehicle and any other expenses related to the collision.

Additionally, choosing to remove DCPD means that optional coverages are no longer available for purchase.

  • Collision provides financial protection for your vehicle if you are at fault in an accident.
  • Comprehensive coverage, although not mandatory, provides protection for perils like theft, fire, vandalism, and falling objects when your vehicle is not in operation.

Opting out of the above, means you also forfeit the right to make a claim with your insurance company or the at-fault driver in such situations.

In terms of mandatory coverages in Ontario, liability coverage safeguards you in case you are held liable for injuries or damage to others in an accident. Accident benefits cover medical expenses, rehabilitation costs, funeral expenses, and loss of income due to disability, but it does not cover damage to your own vehicle.

If you have any questions about your auto insurance, please reach out to Gibb Insurance: 519-736-8228