Rental car coverage in Ontario: OPCF 27

What is OPCF 27?

OPCF 27 is an optional endorsement available to car insurance customers in Ontario. Its full title is “Liability for Damage to Non-Owned Automobile(s), and Other Coverages When Insured Persons Drive, Rent or Lease Other Automobiles.”

To paraphrase that, OPCF 27 provides coverage when an insured person is driving a vehicle they don’t own. An “insured person,” in this case, means the holder of the policy to which OPCF 27 is attached, plus their spouse and any drivers named on the policy.

The typical use of OPCF 27 is to cover damage to rental cars, but it also applies to other vehicles the insured drives but doesn’t own.

What does OPCF 27 cover?

When someone drives a vehicle they don’t own, OPCF 27 allows them to use their own car insurance policy if that vehicle is damaged while in their care. OPCF 27 provides all perils coverage for non-owned vehicles, which means they’re covered for virtually all forms of physical damage or theft.

If someone has OPCF 27 on their car insurance policy, they can decline the car rental company’s collision damage waiver when they rent a vehicle (provided that vehicle is eligible for OPCF 27 coverage — see the next section).

OPCF 27 also extends other coverages on the insured’s policy to rentals, such as third-party liability or accident benefits.

There is a limit of coverage under OPCF 27, which varies depending on the provider. For policies sold by Square One, OPCF 27 has a limit of $50,000 and is subject to a $500 deductible.

To sum up, the endorsement allows someone to use their own car insurance while they’re driving a vehicle that isn’t theirs. Without it, this wouldn’t be possible, and they’d have to secure coverage for the vehicle elsewhere. Rental companies always offer their own (expensive) coverage, and some credit cards cover damage to rental cars as well. However, neither of these options is as comprehensive or as easy as using one’s own car insurance. Adding OPCF 27 to a policy tends to be relatively cheap.

What does OPCF 27 not cover?

There are several important restrictions on non-owned vehicle coverage under OPCF 27:

• Vehicles with a gross vehicle weight rating (GVWR) over 4,500 kg are not eligible for rental coverage under OPCF 27. Don’t worry; most personal vehicles are below this threshold. Many moving vans or similar commercial vehicles are over 4,500 kg GVWR — for example, the largest Ford Transit vans are above this limit.
• Rentals exceeding 30 days are not eligible for coverage under OPCF 27 at all (not even for the first 30 days). The rental contract must be fewer than 30 days, and a longer rental would require a new rental contract.
• Vehicles used in connection with vehicle sales, storage, or repair are not eligible.
• Vehicles owned or regularly used by the insured or anyone residing with them are not eligible. For example, if your regularly borrow your friend’s car, you can’t receive coverage for it under OPCF 27. Same thing for using your roommate’s car.
• Vehicles owned, hired, or leased by the insured’s employer or anyone residing with them are also excluded. That means you can’t use OPCF 27 to insure your work vehicle, and you can’t rent your roommate’s car to circumvent the previous exclusion.
• Carrying passengers or making commercial deliveries are both excluded uses.

What will a car rental company want to know?

When you rent a vehicle, the rental company will ask if you want to purchase a collision damage waiver, which removes the renter’s responsibility for (most) damage to the rental car. People who have coverage under OPCF 27 can decline the waiver.

If you do turn down the rental company’s coverage, they may ask you to provide proof that you have alternate insurance. The easiest way to offer proof is by showing your confirmation of insurance document. The confirmation lists your policy’s endorsements, including OPCF 27 if you have it. If the rental agent isn’t familiar with OPCF 27, you can provide the policy wordings as well. Square One customers can download either of these documents from their online account.

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