What is Direct Compensation Property Damage?

Direct Compensation Property Damage (DCPD) is a mandatory component of auto insurance in Ontario, which covers damage to your vehicle and/or the contents of your vehicle where you are deemed not at fault in an accident.

When does DCPD apply?

If you are in a car accident where the other driver is at fault, DCPD ensures that you will be compensated directly through your own insurance company. This means you don’t have to wait on the other driver’s insurance company for a determination. You also won’t have to sue the other driver for damages. You will deal with your own insurance company and be compensated accordingly.

“No fault” insurance today in Ontario means that regardless of fault, you deal with your insurer; it was put in place to speed up the process of receiving payment of your claim. Prior to this definition of no-fault regulation, you would have to wait for all the insurance companies involved to decide who was at fault for the accident in order to get payment.

Of course, your insurer still has to determine if you were at fault so that your premiums can be adjusted (upwards) if it was, in fact, your doing. All Ontario insurance companies use the same fault determination rules for car accidents and property damage claims – rules that apply regardless of weather, road conditions, pedestrian actions, visibility or point of impact on the vehicle, etc.

It should be noted that DCPD will only apply if these 4 conditions are met:

• You are not at fault for the accident
• The accident happens in Ontario
• At least 2 vehicles were involved in the accident
• Parties involved in the accident are insured by companies licensed in Ontario

Hit and Runs are not covered by DCPD

A hit and run is not claimed under DCPD coverage. If the driver who caused damage cannot be identified, your claim will be paid out through your auto insurance policy.

More Information on DCPD

DCPD does not remove the concept of fault from loss recovery, and it does not change your right to sue for other damages. Most people carry a $0 deductible on DCPD because they don’t want to pay anything for a collision that isn’t their fault.

Resources

• ThinkInsure – Learn About DCPD Coverage In Ontario
• BrokerLink – What to do after a hit and run accident