Effective January 1st, 2024, Ontario drivers will be offered a new optional endorsement on their automobile insurance, the OPCF 49 Agreement Not to Recover for Loss or Damage from an Automobile Collision.

While this endorsement is being promoted as providing Ontario drivers with another way to customize their automobile insurance, it is important to understand the OPCF 49 removes coverage from a policy.

Understanding the OPCF 49

The OPCF 49 endorsement will allow Ontario drivers to opt out of *Direct Compensation – Property Damage (DCPD) coverage, which provides protection for a collision where you are not at fault or only partially at fault.

The OPCF 49 also removes *Collision or Upset and *All Perils coverage, which offers protection if you are at fault for a collision.

Choosing the OPCF 49 endorsement means you will not be reimbursed for the following:

• Vehicle repairs
• Vehicle replacement or replacement value
• Rental car or alternative transportation
• Towing and storage
• Damage to or loss of belongings inside the vehicle

In opting to choose the OPCF 49 you will also waive your legal right to seek compensation from anyone else involved in the collision. Lastly, choosing the OPCF 49 endorsement could breach your contract if your vehicle is leased or financed as most of these agreements require full automobile insurance coverage.

Our Recommendation

Lawrie Insurance Group strongly advises against the OPCF 49 endorsement as it removes coverage from an automobile policy.

We recommend maintaining your DCPD coverage and optional coverage such as collision or upset or all-perils, to ensure you are protected in the event of an insurable loss.

If you choose to proceed with the OPCF 49 endorsement, you will be required to sign a waiver that permits us to make the change and acknowledges that you are now without coverage.

*Key Term Definitions:

Direct Compensation – Property Damage: Provides coverage in Ontario, under certain conditions, for damage to your automobile and to property it is carrying, when another motorist is responsible. It is called Direct Compensation because you will collect from us, your insurance company, even though you are not at fault for the accident. There may be a deductible amount, and this amount is either paid by you toward the cost of repairs or is deducted from the loss settlement.

Collision or Upset: Covers for losses when a described automobile is involved in a collision with another object or tips over.

All Perils: Combines the Collision or Upset and Comprehensive coverages and adds coverage for theft by a member of the Insured’s household

Drive with confidence, drive with the right coverage!

If you have any questions or would like to discuss the OPCF 49 further, please contact your Lawrie Insurance Group Broker directly today.