When it comes to insurance coverage for damage to your car, there are actually three sections of your policy that cover you. Which one pays out the claim is determined by how the damage was caused. They include Collision and Comprehensive coverage, and Direct Compensation Property Damage.
Collision coverage pays to repair or replace your car after an accident where you are found at-fault or partially at-fault in the accident. There is usually a deducible to be paid when claiming collision coverage.
DCPD (Direct Compensation Property Damage) Coverage
This is the exact same as collision, except it is used when you are not at-fault in the accident and there is usually no deductible to be paid.
There is always 100% fault determined when there is an accident. If you are not-at-fault, you will not pay a deductible and the damage will be paid from your DCPD portion of your insurance policy as opposed to the collision portion of your auto policy.
The only exception to the “no deductible” rule is when there is a hit-and-run. If they can not find the driver responsible, you are still not-at-fault but you will end up having to pay the deductible.
This covers damage to your car not caused by an actual accident. Theft, vandalism, fire, windshield damage are good examples of comprehensive insurance claims. there is usually a deductible that is around the same as your collision deducible.
A few notes for the coverage above:
- If you are the victim of a hit-and-run accident, collision will pay out your claim instead of DCPD because Ontario legislation states that a deducible must be paid in every accident. You are still not at-fault in the accident and if they ever find the person who hit you, they will be charged the deductible and you will be reimbursed your deductible.
- You may notice All-Perils coverage listed on your policy. This combines Collision and Comprehensive coverage into one.
Contact us for a quote on your car insurance.