Direct Compensation Property Damage (DCPD) – What is it?

It is a mandatory coverage for auto insurance in Ontario.  It would cover damage to your vehicle where you are deemed not at fault in an accident by the insurance companies involved.

  How is Direct Compensation Property Damage (DCPD) applied when an accident occurs?

Four criteria must be met:

1. You are deemed not at fault.

2. There are 2 or more vehicles involved.

3. Vehicles in the accident must be insured in Ontario.

4. The accident must have occurred in Ontario.

If you are deemed not at fault in an accident, your insurance company will pay to have your vehicle fixed, or if it was a total loss, they would pay out the value of the vehicle based on its condition just before the accident happened.  You do not have to wait for the third party’s insurance company to get involved. However, if you are deemed partially at fault, you would be required to pay the percentage of your deductible under your collision (if you have collision coverage).    DCPD does not cover a Hit & Run scenario, that falls under a different category.

DCPD Deductible

In most cases the deductible will be $0 (why pay extra when you are not at fault, right?!).  If you are looking at lowering your overall premium – you can always increase the deductible to $300, $500, $1000 etc. for minimal premium savings, however this is generally not recommended. Contact your broker to discuss further.

As an insurance brokerage, we can help with auto insurance.  For more information contact Tommy Porteous at [email protected] or call 613-226-6590. Tommy is a RIBO licensed Ontario Insurance Broker and can guide you through the process. This information is to be considered a guide only and does not represent every situation possible.  You are strongly advised to speak with your broker to discuss your specific situation.