OPCF 27 – Legal Liability for Damage to Non-Owned Automobiles

OPCF 27 – Legal Liability for Damage to Non-Owned Automobiles

OPCF 27 Explained

For many business owners and their employees, rental vehicles are needed almost daily. Whether you are picking up a client or flying across the country to go to a meeting, you need to make sure your business is covered.  Understanding your automobile policy is critical when deciding whether to purchase coverage from the rental company or if your own policy will cover you.

What Does The OPCF 27 – Legal Liability for Damage to Non-Owned Automobiles Endorsement Cover?

• When the insured’s own automobile is covered under the S.P.F No 1, this endorsement eliminates the need to purchase physical damage coverages from the lessor or rental agency. Read on for more.
• The OPCF 27 provides coverage for damage to a vehicle that you don’t own, such as a rental vehicle
• OPCF 27 coverage applies to automobiles being operated, used, stored or parked in Canada or the US, and only if:
  • The insured is legally liable for the damage
  • The insured has agreed under a contract or agreement to be responsible for the damage
  • No coverage if the auto is owned or licensed in the name of the insured or a resident of the same dwelling

What Coverage Can Be Purchased From a Rental Agency?

When renting a vehicle, coverage can be purchased from the rental company and usually comes in the form of a “Collision Damage Waiver.” This waiver protects you by transferring the responsibility for the cost of the damage from you to the rental company, usually for an added cost per day. However, it often comes with exclusions as well. For example, it may provide no protection while you drive on unpaved roads and varies from company to company. If insureds frequently rent automobiles, then the OPCF-27 will generally cost less than purchasing the collision damage waiver every time you rent.