OPCF 20 Explained

What Ontario Drivers Need to Know About OPCF 20 Loss of Use Coverage  

No matter how many years you’ve been driving, getting into an automobile accident or car collision or having your car damaged in an unexpected event such as a flood or fallen tree can shake anyone. The insurance claim process can be overwhelming, with numerous forms to fill out, phone calls to make, and documentation to gather. Luckily, some things can make the experience less daunting, such as a friendly insurance broker, a streamlined claims process, and the assurance of a replacement vehicle. At the same time, yours is getting repairs that are needed, thanks to a policy addition known as OPCF 20. 

As explained by the professional insurance brokers at Morison Insurance, whether you are covered for a replacement vehicle depends on whether you have the endorsement on your policy. But what is OPCF 20? Read on to learn more about this optional coverage for your car insurance. 

What is OPCF 20?  

OPCF 20, or loss of use coverage, is an add-on or insurance endorsement to your existing car insurance and provides for either a temporary vehicle replacement or pays for the transportation costs you incur. At the same time, you have physical damage coverage, and your vehicle is being repaired. This coverage can be valuable if your vehicle is inoperable due to an accident or other covered event, and you must be able to go places. If you rely on your car for work or daily activities, OPCF 20 coverage can provide peace of mind during a stressful time. There are three kinds of loss-of-use forms in Canada, which are:  

• OPCF 20, which is for drivers in Ontario 
• QEF 20, which is for drivers in Quebec  
• SEF 20, which is for drivers in Alberta and Atlantic Canada 

What Does Loss of Use Coverage Mean?  

When we say OPCF 20 is loss of use coverage for your vehicle, we mean that it is intended to cover alternative means of transportation while your vehicle is being repaired as part of an insurance claim. Also known as transportation replacement, this ensures you can get around while your car is in the shop. This is especially handy if you live in an area without reliable public transportation or don’t have an alternative means of transportation. 

However, it is important to note that OPCF 20 isn’t an automatic addition to your vehicle insurance, so you need to request it or purchase it as an add-on. It’s also important that you review your car insurance policy to understand the specific details of your OPCF 20 coverage. 

What Falls Under Loss of Use Coverage?  

OPCF 20 is meant to help you get around. At the same time, your vehicle is being repaired, and this often means your insurance company will provide a replacement vehicle, paying the rental costs for a rental vehicle for you to use during the repair period. OPCF 20 can also help you cover additional expenses incurred by using public transportation during this time or reimburse you for taxi fares if needed. 

It’s important to review your policy to understand the specific coverage limits and conditions of OPCF 20, as these may vary depending on your insurance provider. Remember to keep all receipts and documentation of your transportation expenses to facilitate the reimbursement process for your loss of use coverage. If you have any questions about the details of your policy, having OPCF 20 explained by an insurance broker will allow you to understand how it applies to your situation, as it’s always better to be well-informed and prepared when it comes to your insurance coverage. 

What Are The Benefits Of OPCF 20?  

The foremost benefit of OPCF 20 is that your daily routine won’t get disrupted while your vehicle is out of commission, and you can go about your day with minimal interruption. Another benefit is that because your insurance will pay for the cost of your replacement vehicle, it is often much cheaper than paying for it out of pocket yourself. It also saves you the hassle of finding a replacement vehicle during the time yours is in the shop. As you don’t know precisely how long repairs will take, you don’t have to worry about making alternative transportation if you need to have your rented vehicle in by a specific date.  

Additionally, OPCF 20 provides peace of mind knowing that you have access to a temporary vehicle while yours is being repaired or replaced, saving you the hassle of arranging alternative transportation arrangements during that period and ensuring you can continue with your daily activities without having to worry about transportation issues or delays. 

How Long Does OPCF 20 Last?  

OPCF 20 generally lasts until one of three things occurs:  

• Your damaged vehicle has been fully repaired. 
• You’ve received a settlement for a total loss. 
• You’ve reached your loss-of-use coverage limit. 

In the first two cases, you either don’t need the replacement vehicle anymore, or your vehicle cannot be repaired, so you receive money to purchase a new one. However, in the latter case, you’ve exceeded your coverage limit, meaning that after that point, any costs incurred for replacement transportation will have to be out-of-pocket expenses. This limit will be listed in your policy, and once you exceed it, you may not be able to access further support until a certain period has passed or you choose to purchase additional coverage. It’s important to thoroughly examine your policy or have your broker explain OPCF 20 to you so you know its limits. 

How Do I Qualify for OPCF 20?  

As OPCF 20 is an optional add-on, not a stand-alone policy, there are many ways you can qualify for it. 

For instance, specific perils coverage takes care of your vehicle needs in case of theft, fire, earthquakes, explosions, weather, and other sudden events that may cause damage or cause you to lose use of your vehicle for a long time. It provides financial protection against unforeseen circumstances that could result in extensive vehicle repairs. 

Collision coverage, however, aims to protect you in the case of a vehicle collision, whether you are at fault or not. It helps ensure the other vehicle and driver are at fault for the collision and that the other vehicle and driver are taken care of. 

Comprehensive coverage will cover losses that aren’t the cause of a collision, such as vandalism, falling objects, and other unforeseen events, including those listed under specific perils, that temporarily prevent you from using your vehicle. 

Finally, all-perils coverage—a combination of comprehensive and collision coverage—compensates in case of any kind of peril, be it collision or an unforeseen event, unless it is stated otherwise in your insurance policy. It also provides coverage in the case that someone you live with, a driving employee, or an auto mechanic damages or steals your vehicle. 

All these policy types can provide loss of use coverage. However, it is not guaranteed, so it’s also a good idea to have coverage for OPCF 20 explained to you by your insurance broker when you are getting, upgrading, or crafting a new auto insurance policy. 

What Are The Limitations Of OPCF 20?  

Loss of use coverage for your vehicle is not a limitless resource. There will be several factors that may impact whether you can access OPCF 20. These policy limits include:  

• The type of vehicle you can access. Generally, loss-of-use coverage provides you with a car similar to your damaged one. When having OPCF 20 explained, any insurance broker will tell you it ensures that you have a primary transportation option during that repair period. Depending on the availability at the rental agency, you may not get an exact match—if you drive a Honda Civic, for example, do not expect to rent a Ford F-Series pickup truck with your OPCF 20 coverage. 
• Your age may mean you are not qualified to rent a car from a rental company. In Ontario, the minimum age requirement to rent a car from a rental company is typically 21 years old. However, some rental car companies may require you to be 25 years old or older in order to rent a car. So, if you are under 21 years of age when OPCF 20 coverage is explained, ask how your age would affect your loss of use coverage to make an informed decision. Remember that it still would pay for public transit use or the cost of cab fare. 
• Fuel costs or additional rental vehicle insurance are not covered by OPCF 20, so despite having loss of use coverage, you may still incur additional costs.  
• Depending on your coverage type, you may not be eligible for loss of use coverage if a specific instance occurs. For example, if your policy only covers collisions, and your vehicle is damaged by a fallen tree or in a hail storm, you may not be eligible for loss of use coverage. It’s important to review your policy to understand the specific instances that are covered by OPCF 20.    
• Your insurance company’s claim evaluation may impact whether you can utilize OPCF 20. For instance, if your car was deemed to be a total loss, you may not be eligible to use OPCF 20 coverage, or if you have a second vehicle that can be used while your primary vehicle is being repaired, your insurance company may not allow you to apply OPCF 20 to the rental vehicle. It is essential to review your policy and consult with your insurance provider or policy to understand and have OPCF 20 explained in detail so you know the specific conditions for utilizing loss-of-use coverage.  
• In rare cases, how you utilize OPCF 20 may depend on the availability of rental vehicles where you live, so it’s essential to check with your insurance provider on how issues regarding replacement vehicle availability would affect your policy. 

When crafting your auto insurance policy, having OPCF 20 explained by a knowledgeable insurance broker will help you better understand the limitations of your loss-of-use coverage. 

Is Loss of Use Coverage Mandatory?  

While having vehicle insurance is mandatory for any vehicle owner in Ontario or Canada, having loss of use coverage is not part of that mandatory coverage. When OPCF 20 was explained in the above paragraphs, we stressed it was an optional addition to your auto policy and is meant to provide access to a replacement vehicle while yours is getting repaired. However, there may be cases where you may not want to purchase loss-of-use coverage. For instance, if you primarily work from home, have a secondary vehicle you can readily access, or live within walking distance to most amenities, OPCF 20 may be an unnecessary expense to your policy, so opting out of loss of use coverage might be a practical choice. 

What If I Don’t Have Loss of Use Coverage?  

Without OPCF 20, as explained above, your insurance will not cover the cost of a substitute vehicle or alternative means of transportation. This can cause issues if you depend on your car to get to places or if you need reliable transportation while your vehicle is getting repaired. In these cases, you will need to find alternate means of transportation and pay for it yourself. 

Get the Right Coverage for Your Auto Insurance Needs  

To find out more about your loss of use coverage or to have OPCF 20 explained by an insurance broker, speak to our car insurance experts. We’ll be able to best advise you on whether loss of use coverage would benefit you depending on your specific needs and what type of insurance would work best for you. Contact us today, and one of our knowledgeable brokers will be happy to assist you in understanding the details of OPCF 20 and how it can provide you with the necessary coverage in the event of a loss of use situation. Don’t hesitate to reach out to us now or get an online quote to ensure you have the right protection for your car insurance needs.