OPCF 27: Liability for damage to non-owned automobiles

What is OPCF 27?

OPCF 27, also known as Liability for Damage to Non-Owned Automobiles, provides coverage when driving vehicles you do not own. It helps protect you against damage or loss involving vehicles you rent or borrow.

Whether you're borrowing a friend's vehicle, using a family member's car, or renting a vehicle for a vacation, many drivers assume their personal auto insurance automatically extends to these situations. However, coverage may not be available unless you have added the OPCF 27 endorsement to your policy.

Here's what you need to know about OPCF 27.

What you need to know about OPCF 27

• OPCF 27 provides comprehensive and collision coverage for damage to rented or borrowed vehicles while driving in Canada or the United States. It can also extend third-party liability and accident benefits coverage.

• You can download the OPCF 27 form from the FSRA website.

• OPCF 27 excludes coverage for heavy vehicles (GVWR over 4,500 kg), rentals longer than 30 days, vehicles used for business purposes, and vehicles regularly used by you, household members, or your employer.

• Adding OPCF 27 often costs about $50 or less annually, making it a more affordable option than purchasing daily rental vehicle insurance.

• Rental companies may offer a collision damage waiver, but if you have OPCF 27, you may be able to decline that coverage and rely on your own policy instead.

OPCF 27 explained

OPCF 27 is one of several Ontario Policy Change Form endorsements available to drivers. It extends certain coverages from your personal auto policy to non-owned vehicles.

• Provides comprehensive and collision coverage for rented or borrowed vehicles.

• Extends your third-party liability and accident benefits coverage while operating a non-owned vehicle.

• Applies only when driving in Canada or the United States.

What is not included with OPCF 27?

OPCF 27 does not cover heavy vehicles, long-term rentals, or vehicles used for commercial purposes.

• Heavy vehicles: Vehicles with a Gross Vehicle Weight Rating (GVWR) exceeding 4,500 kg.

• Long-term rentals: Rentals longer than 30 consecutive days.

• Business use: Vehicles used for sales, deliveries, storage, repairs, or transporting passengers for compensation.

• Regularly used vehicles: Vehicles owned, leased, or routinely borrowed by you, household members, or your employer.

How much does it cost to add OPCF 27?

Adding OPCF 27 typically costs around $50 or less per year. For many drivers, this is significantly less expensive than purchasing insurance from a rental vehicle company, which is generally charged on a daily basis and can add up quickly during extended rentals.

OPCF 27 and rental cars

If you have OPCF 27, your personal auto insurance coverage can extend to rental vehicles, subject to the endorsement's terms and conditions.

Some common limitations include:

• Only drivers listed on the policy are covered.

• Coverage generally applies to rentals of up to 30 days.

• Coverage limits may range between $25,000 and $50,000, depending on your policy.

• Coverage applies only to standard vehicles weighing less than 4,500 kg.

Are you covered for a rental when you have OPCF 27?

Yes. OPCF 27 can act as an alternative to the insurance offered by rental companies. If you carry this endorsement, you may be able to decline the rental company's coverage and rely on your own policy instead.

Before renting a vehicle, it is always a good idea to review your policy and confirm coverage details with your insurance provider.

Do I need the OPCF 27 endorsement?

Whether you need OPCF 27 depends on your driving habits. If you frequently rent vehicles or borrow cars from family and friends, the endorsement can provide valuable protection and peace of mind.

However, if you only drive your own vehicle and rarely operate other automobiles, you may have limited need for this additional coverage.

What is the difference between OPCF 27 and OPCF 27B?

OPCF 27B is designed for business use and is known as Liability for Damage to Non-Owned Automobiles in Your Care, Custody or Control.

While OPCF 27 is intended for personal auto insurance policies, OPCF 27B helps protect businesses that rent, borrow, or use vehicles as part of their operations.

How does OPCF 27 work if you get in an accident?

If you damage a borrowed or rented vehicle and have OPCF 27 coverage, your insurance policy may respond to cover eligible damages according to your policy limits, deductibles, and terms.

This endorsement can help protect you from significant out-of-pocket expenses after an accident involving a non-owned vehicle.

Need help understanding OPCF 27 coverage?

Whether you're renting a vehicle for a trip or borrowing a car from a friend, having the right coverage matters. Speak with a BrokerLink advisor today to review your policy, determine if OPCF 27 is right for you, and ensure you're protected when driving vehicles you don't own.

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