How OPCF 27 coverage can keep your friendships in tact

Say you’re on a road trip with a friend, and you split the task of driving her car. While you’re behind the wheel, you bump into another car. The good news is that nobody was hurt. The bad news is that the other car now has a scratch. You then find yourself wondering: If you were behind the wheel, who is responsible for repairs?  

In Ontario, this question has a couple of possible answers. One is that your friend – the car owner – would have to dig into their own insurance to cover the claim. Another is that you arrange to settle this out of pocket, so nobody’s insurance is involved.  

But there’s a third option, too. Liability for Damage to Non-Owned Automobiles coverage, otherwise known as OPCF 27. It’s a type of insurance add-on that provides coverage when you’re driving a car that doesn’t belong to you.  

Below, we’ll break down how this type of coverage works, who can get it, who should get it, how much it costs, and more.  

What is OPCF 27 coverage, and how does it work?  

OPCF 27 coverage is an add-on Ontario drivers can append to their auto insurance policy.

When you make an OPCF 27 claim for an accident you get into while driving someone else’s car, you’re essentially shielding their own insurance policy from the collision, thereby avoiding impact to their claim history and, subsequently, their premiums.  

Typically, it provides physical damage, theft, third-party liability, and accident benefits coverage when you’re driving a vehicle that you don’t own.  

Some common scenarios where you could benefit from OPCF 27 coverage include when:  

You’re borrowing a car  

Let’s say you’re borrowing someone else’s car, and the car is stolen or you get into an accident, like in the scenario above. If you have OPCF 27 coverage, you have the option to make a claim through your own insurance instead of filing one through the car owner’s insurance policy.  

You’re renting a car 

Because OPCF 27 provides virtually the same coverage as car rental insurance, so you won’t need to have both if you’re renting a car. OPCF 27 coverage is typically cheaper than rental insurance, too, since rental car companies usually charge daily for the latter. 

However, if you’re deciding between the two, remember that rental insurance does have one advantage over OPCF 27 coverage: impact to your auto insurance.  

If you make a claim through your rental insurance, that claim won’t potentially lead to higher auto insurance rates for your regular insurance policy. Unfortunately, that is not the case with OPCF 27, since it’s a part of your auto insurance policy.  

That’s why if you are renting a car that already comes with rental insurance, you should use that coverage instead.  

Related: What does rental car insurance cover exactly and do you need it? 

What does OPCF 27 not cover? 

There are several scenarios where you won’t be able to apply this type of coverage while driving someone else’s car. These include when:  

- You’re using a car provided by your employer  
- You’re driving a rental vehicle where the rental lasts more than 30 days  
- You’re making commercial deliveries  
- You’re driving a heavy vehicle like a moving truck  
- You’re driving a car owned by someone who lives with you, like a partner, your parents, or a roommate  

How much does OPCF 27 cost? 

The OPCF 27 add-on is typically part of a larger endorsement package that includes loss of use coverage (otherwise known as OPCF 20). Loss of use coverage helps you pay to rent a vehicle when you file a claim under your collision or comprehensive coverage, and your car is in the process of being repaired.  

The total cost of this endorsement package is around $100 to $150 annually, which breaks down to about $12.50 a month or less.

If you have OPCF 27 and are involved in an at-fault collision in a car that you’ve rented or borrowed, where will coverage come from? 

Typically, you’ll have a choice between whether to use your OPCF 27 or another policy in the event of an incident. For a rental car, if you have both rental insurance and OPCF 27, you can make a claim under either policy.

When you’re borrowing a vehicle, you also have a choice to either file a claim under your OPCF 27 coverage or under the car owner’s insurance policy. However, in the interests of etiquette you might consider making the claim under your own policy, as your claim will impact the insurance policy you choose to apply, and possibly raise the premiums. Yes, that means that you may be dinged on your insurance, but it’s not worth souring a friendship over.  

Read more: How an at-fault collision impacts your car insurance rates 

How does OPCF 27 compare with the rental insurance offered under your credit card?

OPCF 27 coverage typically offers a higher limit than rental car insurance offered by credit cards. OPCF 27 coverage limits usually sit around $50,000. Most credit card rental insurance have some restrictions on their coverage, too – it’s hard to find rental car insurance for vehicles priced over $65,000 for rentals exceeding 35 days, for example.  

Can you buy OPCF 27 coverage if you don’t have a car?  

If you’re thinking of going car-free and relying mostly on rentals or borrowing friends and family members’ vehicles, OPCF 27 won’t help for that, as it needs to be added to an existing auto insurance policy and cannot be purchased on its own.  

However, you have options through rental car insurance or carshare insurance, or having your friend add you as a secondary driver or occasional driver to their own policy.