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Understanding Direct Compensation — Property Damage

Read about the changes to this coverage, and why it's important to include in your car insurance policy.

What is DCPD?

Direct Compensation Property Damage (DCPD) is an essential part of car insurance in Ontario. It’s set up to simplify the claims process and to protect you, the driver.

If your vehicle happens to be damaged in a collision caused by another driver, you'll file a claim with your own insurer, regardless of who’s at fault. This speeds up the repair process and reduces stress.

DCPD covers the cost of repairing your car, excluding injuries. It ensures you get your vehicle fixed quickly, if you have the third-party’s identity and they are insured. It also provides you with a rental replacement, transportation costs, and covers the personal contents in your car. That provides you with peace of mind and solid support.

Is DCPD mandatory?

As of January 1, 2024, drivers can opt out of DCPD by signing the Ontario Policy Change Form 49 (OPCF49). The option for customers was amended to the Insurance Act by the Ontario government to give Ontarians more flexibility when it comes to their car insurance.

The Ontario government’s change allows you, the customer, to tailor your coverage to meet your personal or financial needs.

DCPD insurance encompasses two key coverage elements:

  • Coverage for Your Vehicle and Property Damage: DCPD provides financial protection for the repair or replacement of your vehicle and personal goods that get damaged in a collision.
  • Compensation of Loss of Vehicle: While your car is being repaired, or you are awaiting a settlement, DCPD covers the cost of a rental vehicle or public transit expenses.

Is there a deductible for DCPD in Ontario?

Customers can purchase DCPD with or without a deductible with Onlia. The options are $0 and $500. If an insured is 0% at fault, they’ll be compensated based on that deductible. If an insured is 100% at fault, there is no coverage under DCPD. However, the insured will be compensated under collision coverage — if purchased.

For example, if an insured is 25% at fault, then DCPD will pay 75% of the claim, apply 75% of the DCPD deductible, plus collision, if present will pay 25% of the value of the claim, minus 25% of the collision deductible.

What are the risks of not having DCPD?

Not having Direct Compensation Property Damage in Ontario means that if your car gets damaged in a collision you won't be able to recover money from your insurance company, and you won't be able to get money from the at-fault third party either.

Without DCPD, you risk financial and time-consuming hassles. That means DCPD is a valuable safety net for a smoother, worry-free claims process.

How much does DCPD cost?

The cost of DCPD is shown separately on your certificate of automobile insurance.

The cost varies depending on factors like your driving history, the type of vehicle you drive and the coverage limits you choose.

What if I don’t have DCPD and I get rear-ended?

We hope that you don’t have to experience getting rear-ended by another car, but if you’re involved in a no-fault collision, you will not be reimbursed for:

  • Damage to your vehicle
  • Value of the vehicle
  • Loss of vehicle use
  • Vehicle replacement
  • Personal contents in the vehicle

DCPD rules and exemptions

Direct Compensation Property Damage doesn’t always apply to a claim. There are three specific criteria that need to be met:

  • The accident must take place in Alberta, Ontario, Québec or Atlantic Canada
  • Your insurer must be licensed in that jurisdiction or have signed the undertaking
  • A third party must be identified and, except in Quebec, at least one of the third-party insurers must also be licensed in that jurisdiction or have signed the undertaking


If DCPD does apply, it will compensate you in reverse to your proportion of liability. For example, if you are 25% at fault, DCPD will pay 75% of the damages.

If DCPD does not apply, you can sue third party, for example:

  • Single vehicle collision or accident with unidentified or uninsured third-party. Note: In Québec, DCPD applies for an uninsured third party.
  • An accident in Ontario where the third party was insured by ICBC. ICBC did not sign undertaking.
  • An accident in British Columbia. There is no DCPD, nor do you have the right to sue. If you have Collision coverage, then you will be covered.


In Ontario, DCPD is a part of auto insurance coverage that covers property damage to your vehicle when another driver is at fault in a collision. 

The key rules and regulations for DCPD are:

  • No-Fault System: DCPD operates on a no-fault basis, meaning you can claim benefits from your own insurance company.
  • Conditions Apply: DCPD coverage only applies when the accident involves another driver who is found to be at fault. If you are at fault, you must rely on your own collision or comprehensive coverage to cover the costs.
  • Property Damage Only: DCPD covers property damage to your vehicle and does not include personal injury coverage.
  • Claims Process: If you’re in a DCPD-eligible accident, you’ll file a claim with us, and we’ll manage the claim and repairs to your vehicle.

It’s important to read and understand your insurance policy and consult with us to ensure you have the coverage you need and to know the specific details of your DCPD coverage.

Shift into DCPD gear

Go online with Onlia and get full coverage with just a few taps on your mobile device.

What if you’re at-fault in an accident?

If you’re at fault in a collision, DCPD coverage does not apply to your own car. DCPD is designed to provide coverage for damage to your car when another driver is at fault.

When you’re at fault for an accident, you will need to rely on your own collision or comprehensive coverage, if they are included in your policy.

Collision coverage helps cover the cost of repairs to your vehicle in the event of an accident, regardless of fault, while comprehensive coverage covers non-collision related damage, such as theft, vandalism and weather-related damage.

However, if you opted out of DCPD, you will not be eligible for collision coverage.

What is an example of a DCPD collision?

An example of a Direct Compensation Property Damage (DCPD) accident in Ontario might involve the following scenario:

Imagine you are driving your car, obeying all the signs and another driver runs a red light, colliding with your vehicle. Your vehicle sustains damage, including a dented door and damaged fender. In this situation, the other driver is clearly at fault for the accident.

DCPD coverage would apply in this case. You can file a claim with us for the property damage to your vehicle, even though it was not your fault. Onlia will handle the claim and cover the cost of repairs to your car or provide compensation for the damage.

Frequently asked questions