What Endorsement Covers Borrowed or Rented Vehicles?

Owning a vehicle offers convenience. At the same time, it’s extremely expensive. Between your regular payments or loans, insurance premiums, registration fees, maintenance, and so on, owning a vehicle can become one of your biggest expenses before you know it. Many drivers in Ontario depend upon borrowed vehicles in order to get to school, work, or complete whatever task they need to get done. Unfortunately, with borrowed vehicles, you will not have automatic insurance coverage for an accident under your standard auto insurance policy. In order to receive claim payout for any damages or injury-related expenses, you’ll need to purchase a very unique endorsement known as “OPCF 27,” or the Liability for Damage to Non-Owned Vehicle(s) Endorsement.

What is this endorsement exactly, and what does it cover?

OPCF 27 is designed to offer protection for any physical damages that could occur to the vehicles you operate but do not own yourself. This means that any rented or borrowed vehicle you drive may have coverage under this special type of insurance. This coverage is, however, subject to a deductible.

Note: A deductible is the amount you’ll pay in the event of a loss before your insurance company makes its payment towards any necessary repairs or replacements. It can be as low as $500 or range into the thousands – but it has to be an amount you would be willing to pay for out-of-pocket.

This coverage, in addition to physical damages protection, also includes protection for accident benefits, direct compensation-property damage (DCPD), and uninsured automobile coverages (depending on the provider and varying from policy to policy.) Its purpose is to financially protect drivers if they should get into a car accident in a rented/borrowed vehicle. This kind of coverage serves as an add-on and will protect you in an array of different scenarios.

What exactly does OPCF 27 cover?

This endorsement supplies a considerable amount of coverage and may provide “full coverage” car insurance, which includes comprehensive and collision, for rented/borrowed vehicles.

That means that OPCF 27 includes:

• Comprehensive insurance – This insurance coverage may protect you from a wide range of different risks that are otherwise out of your control. This may include such things as fire, theft, vandalism, and damages due to weather events (like hail, wind, etc.).
• Collision insurance – This insurance coverage protects you if you get into an accident with another vehicle or an object, like a street lamp.

With an OPCF 27 endorsement, you also have these coverages:

• Third-party liability coverage – This insurance covers losses that are suffered by third parties in an accident or a collision. This does not include the driver.
• Accident benefits coverage – This insurance provides coverage for any injuries you, your passengers, or any bystanders suffered during an accident.

Who needs an OPCF 27 endorsement in Ontario?

Plenty of people, actually. OPCF 27 is not a requirement if you borrow or rent cars, and you should know that you can actually borrow a family member or friend’s car for a limited period of time without coverage (but any accidents will likely be covered by their insurance.) However, if you want to borrow/rent for several days or upwards of a few weeks, it’s highly recommended you acquire an OPCF 27 endorsement to protect yourself from any out-of-pocket costs.

You’ll want to keep in mind, however, that there are restrictions and requirements when it comes to this endorsement. If you are going to be borrowing or renting a vehicle for a long period of time, note the following requirements:

• Coverage will be capped at a specific amount, based on the limit you have purchased eg. $50,000.
• Drivers may only receive up to 30 days of coverage at a time.
• Only standard vehicles, which weigh less than 4,500kg, may be covered.

What about travel in the United States? An OPCF 27 rider can provide you with collision and comprehensive insurance should you damage a rented/borrowed vehicle. Your accident benefits and third-party liability will also apply to rented or borrowed vehicles. This coverage will not extend beyond the United States and Canada.

What does it cost to buy an OPCF 27 endorsement?

If you’re worried about costs, don’t be! An OPCF 27 endorsement is relatively inexpensive and, next to the fees that a rental company would charge, negligible. On average, this endorsement may cost roughly $50/year. On the other side of the coin, rental car agencies may charge an additional $60/day for their insurance coverage, which can be limited and is designed to protect their investment, not you.

OPCF 27B, however, may cost a little more depending on the amount of vehicles being covered. OPCF 27B is a little different than OPCF 27 and is designed for business operations, protecting vehicles that are used for business activities by the business, but not owned by the business. It protects the business owners and the business from financial losses that may occur when they rent or borrow commercial automobiles or equipment.

If you have any further questions regarding this insurance endorsement, feel free to get in touch with an Excalibur Insurance broker! We’re happy to discuss any insurance questions and give you insights on if this is the right coverage for you.