Direct compensation property damage insurance

If your vehicle sustains damage after a collision that wasn't your fault, your insurance company will pay to repair your car under the DCPD section of your policy. Assuming you have a $0 deductible for DCPD claims, there is no deductible to pay.

Most policies don’t have a direct compensation property damage deductible, but you can add one for any amount if you want. However, there are a couple of instances where DCPD coverage doesn’t apply even if you aren’t at fault. In these circumstances, you will need supplemental coverage for your vehicle repairs to be covered by your insurer.

For example, you're driving in Toronto, and a US driver rear-ends you. If the US driver's insurance company hasn't agreed to follow the DCPD rules following a collision, your insurer will look to your collision insurance.

Your collision coverage is optional and does have a deductible associated with it. Unfortunately, if you do not have collision insurance, you’ll have to pay for the repairs out of pocket. Though there is still a way to recoup your expenses, you just have to deal directly with the at-fault driver’s insurance company.

The same rule above applies in any province that doesn’t have DCPD or if you’re in a hit and run collision. If your insurer can’t identify the driver, they won’t be able to seek reimbursement. So you’ll need to have collision coverage on your policy to have your repairs covered.

Mandatory car insurance in a no-fault system includes third-party liability, accident benefits, direct compensation property damage (DCPD), and uninsured motorist. Let’s break it down.