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Understanding the Risks of OPCF 49

Effective Jan. 1, 2024, Ontario drivers will be offered a new optional endorsement on their auto insurance called 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 auto insurance, it’s important to understand OPCF 49 removes coverage from a policy.

What is OPCF 49

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

OPCF49 also removes collision or upset and all perils coverage, which offer protection if you’re at-fault for a collision and from other hazards (i.e. hail), respectively.

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

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

By choosing OPCF 49, you’ll 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 auto insurance coverage.

Our Recommendation Regarding OPCF 49

Acera Insurance strongly advises against the optional OPCF 49 endorsement as it removes coverage from an auto policy.

We recommend maintaining your DCPD coverage and also optional coverages like collision or upset and all-perils so you’re 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 grants us persmission to make the change and acknowledges that you are now without coverage.

If you have any questions or would like to discuss OPCF 49 further, please contact your insurance advisor directly.