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6 minute read Published on Sep 3, 2026 by BrokerLink Communications
You may think that car insurance is only for people who own a vehicle, but a lot of Canadians drive regularly without owning a car, whether they’re borrowing a friend’s vehicle, renting cars often for work or travel or even relying on car-sharing services.
That’s where non-owned auto insurance comes in. It typically covers third-party bodily injury or property damage resulting from an at-fault accident in a car you don’t own. Read on to learn what non-owned auto insurance means in Ontario and the difference between non-owned auto coverage and the OPCF 27 endorsement.
“Non-owned auto insurance” is a general term people use to describe coverage that applies when you drive a vehicle you don’t own. This usually means one of two things:
Coverage that already follows you under an Ontario auto policy (OAP 1) when you drive a non-owned vehicle, subject to conditions.
An OPCF 27 endorsement, which adds protection for damage to vehicles you don’t own.
For businesses, non-owned auto insurance is often provided through a Hired and Non-Owned Auto (HNOA) policy. For individuals, it may be added to a personal auto policy as an endorsement.
If you’re purchasing car insurance in Ontario, there is one endorsement you should be aware of: OPCF 27. OPCF 27, formally known as Legal Liability for Damage to Non-Owned Automobiles, is an endorsement that can be added to an existing auto insurance policy in Ontario (OAP 1).
Its there to help cover damage you’re legally responsible for to a vehicle you don’t own when you’re driving it. This can include rented vehicles or vehicles borrowed from someone outside your household. OPCF 27 does not replace the vehicle owner’s insurance. Instead, it typically applies as excess or contingent coverage, after the owner’s policy responds. Read on to learn more:
Here's what you need to know:
Covers damage you’re legally liable for to a non-owned vehicle you’re driving
Applies when the vehicle is in your care, custody or control
May include loss of use or diminution of value wording, depending on the insurer
On the other hand, OPCF 27 does not:
Create a standalone auto policy
Replace the vehicle owner’s primary insurance
Apply to vehicles owned by someone in your household
Please note that, as with all types of insurance, non-owned auto insurance has restrictions and limitations. Specifically, you will only be covered by your OPCF27 endorsement under the following circumstances:
When driving in Canada or the United States
When driving a passenger car that weighs under 4,500 kilograms
Coverage for rental vehicles is often limited to a maximum of 30 consecutive days
Damage limits for non-owned vehicles commonly range from $50,000 to $100,000 or more
If the driver is not listed under the same policy or living in the same household as the owner
These are common guidelines, not universal rules. Always review your policy wording or speak with a broker to confirm what applies in your situation.
Technically speaking, any person in Ontario with a valid driver’s licence who does not own a car is eligible for non-owned auto insurance coverage. That said, many insurance companies have rules and restrictions around who they will actually grant this type of coverage to.
For example, many insurers will not allow a customer to take out a non-owned auto policy if the person whose car they borrow lives in their household. In other words, if it is your parents’ or spouse’s car that you drive frequently, an insurance company likely won’t allow you to add OPCF 27 coverage. Instead, you will need to be added as a driver to your parents’ or spouse’s personal car insurance policy. Thus, non-owned automobile coverage is usually best suited to those who:
Rent vehicles frequently
Borrow vehicles from friends, family members or neighbours outside their household
Use car-sharing services on a regular basis
For instance, if you rent cars from rental car agencies on a regular basis or you are a member of a car sharing service, such as Zipcar or Communauto, then you may want to talk to an insurance broker about non-owned auto insurance. An insurance broker can also explain what documents you need for car insurance and how long it takes to get your own car insurance policy.
Some employees use their personal vehicles or rental cars for work-related tasks, such as visiting clients or running business errands. Coverage in these situations depends on how the vehicle is used and what the employee’s personal auto policy allows.
If a personal policy does not cover business use, businesses may need non-owned auto insurance to help protect them from liabilities when employees use personal or rental vehicles for work-related tasks. Please note that business non-owned auto coverage is typically arranged under a commercial policy and differs from personal endorsements like OPCF 27.
The three most common reasons that customers choose to purchase non-owner car insurance are as follows:
If you often find yourself regularly borrowing a friend, family member or neighbour’s vehicle, then a non-owned auto endorsement might be for you. Keep in mind that car insurance follows the car, not the driver. So if you only drive your friend’s car very occasionally, you may not need to purchase your own insurance, since you will be protected by their coverage if you get into an accident.
However, having non-owned auto insurance can prevent significant out-of-pocket expenses in case damage you may be responsible for while using a rented or borrowed vehicle. With an OPCF 27 endorsement, you can also gain comprehensive and collision coverage, which can be used to pay for any damages that exceed the limits of your friend’s car insurance policy should you get into an accident.
Non-owned auto coverage can be more cost-effective than purchasing insurance at the rental counter every time you rent a vehicle. Non-owned auto insurance not only covers you when driving a rental, but rental companies often charge $25 to $30 per day for a collision or loss damage waiver and coverage can include exclusions.
Another reason that some people choose to take out a non-owned auto endorsement is that it can help maintain a driver’s insurance history and potentially prevent higher premiums in the future.
For example, if you recently sold your car or lost it due to damage and do not plan to buy a new car for a short period of time, you could be at risk for a gap in your insurance history. This can lead to increased rates the next time you go to purchase a policy. Thankfully, by taking out a non-owned auto liability endorsement, you can maintain a continuous auto insurance history if you borrow someone else’s car until you buy a new one of your own.
When you rent a vehicle, the rental company will usually offer a collision damage waiver (often called CDW) at the counter. This is optional rental car insurance that changes who is responsible if the rental vehicle is damaged or stolen. There are a few common ways rental vehicles can be insured:
OPCF 27: May apply to damage you’re legally responsible for to a rental vehicle you’re driving, subject to policy limits, conditions and exclusions.
Rental CDW: Transfers damage responsibility to the rental company, though exclusions often apply depending on how and where the vehicle is used.
Credit-card or third-party rental insurance: May cover physical damage to a rental vehicle, but coverage is usually secondary and depends on meeting specific terms and conditions.
Because each option works differently, some drivers rely on one type of coverage, while others may have more than one in place.
Coverage can vary, but when driving a non-owned vehicle in Ontario, your insurance protection may include:
Liability car insurance
Accident benefits coverage
Collision coverage for damage to a non-owned vehicle (with OPCF 27)
Comprehensive coverage
To find out how to add OPCF 27 coverage to your personal car insurance policy, contact an insurance broker at BrokerLink. We can explain how car insurance rates are calculated and how adding this type of endorsement to your policy can affect your rates. We can also explain how a non-owned auto endorsement works in every Canadian province.
As a full-service insurance broker, we can compare rates on your behalf to ensure we find you the most appropriate insurance coverage for your needs. We can also give you tips on ways to keep the cost of non-owned auto insurance down, such as by purchasing multiple auto insurance policies.
To begin your car insurance journey and receive a free auto insurance quote today, contact BrokerLink. You can request your free non-owned auto insurance quote over the phone, in person at any one of our locations throughout Canada or on our website using the free online quote tool!
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