Opcf 27 Explained

The OPCF 27 endorsement is an optional coverage that can be added to your standard auto insurance policy in Ontario. It offers protection for legal liability related to non-owned automobiles. Often bundled with the OPCF 20, this endorsement is useful for drivers who frequently rent or borrow vehicles. Understanding the OPCF 27 can help protect you when driving, operating or in the care custody and control of a non-owned vehicle. 

What is legal liability for damage to non-owned automobiles?

Legal liability for damage to non-owned automobiles is a risk exposure someone assumes when renting, leasing or borrowing non-owned vehicles.  That is to say, the person/driver renting, borrowing or leasing a non-owned vehicle is responsible for any damages or loss to the non-owned vehicle, while in its care custody or control.  

Conditions and Eligibility for OPCF 27

Like any insurance policy, the OPCF 27 is subject to conditions, restrictions, and eligibility criteria:

1. The vehicle must not be owned or registered to anyone insured under the described auto policy, or to anyone living in the same household as those insured.

2. The non-owned vehicle must not weigh more than 4500 kg in GVWR (does not apply to the OPCF27B). 

3. If the vehicle weighs over 4,500 kg in GVWR, it must be rented for personal use and no more than seven days.

4. The automobile is not driven by an insured person in connection with the business of selling, repairing, maintaining, storing, servicing or parking automobiles

5. The automobile is not owned or frequently used by an insured person or anyone living in the same dwelling as the insured person

6. The automobile is not owned, hired or leased by an insured person’s employer or by an employer of anyone living in the same dwelling as the insured person

7. The automobile is not being used to carry paying passengers or to make commercial deliveries at the time of the loss

OPCF 27 vs. Opcf 27B  

The OPCF 27 and OPCF 27B endorsements offer essentially the same coverage. However, the OPCF 27B is specifically designed and worded for commercial auto exposure. You will never find the OPCF 27B on a personal auto insurance policy, just as the OPCF 27 is not used for commercial auto policies.

Key differences between the OPCF 27 and the OPCF 27B

Although the OPCF 27 and OPCF 27b endorsements sound similar and share the same purpose, there are key differences regarding the permitted use of the vehicle, restrictions on vehicle weight, and the individuals to whom the coverage extends. 

The OPCF 27 endorsement is intended for private passenger vehicles weighing less than 4,500 kg in GVWR and used for non-commercial purposes. Coverage extends to the individuals named in the auto policy. This includes you, your spouse, and all listed drivers.

The OPCF 27b endorsement is tailored for business operations or commercial auto risk. It extends coverage to employees and associates of the insured business when the vehicle is used for business activities. 

Both versions of the endorsement have specific monetary limits, which can be adjusted based on the risk tolerance of the insured and the insurer’s underwriting criteria.

OPCF 27 Limit

The limit for the OPCF 27 endorsement varies based on the amount of coverage purchased. Typically, it can range from $40,000 to over $100,000. Some insurers offer a fixed coverage limit, while others provide a broader range of coverage limits. 

It’s crucial to be mindful of your OPCF 27 limit to avoid an exposure gap if the value of the non-owned vehicle exceeds the coverage amount. For example, if you have a $50,000 OPCF 27 limit and the non-owned vehicle is valued at $70,000, there could be a $20,000 shortfall in coverage if the car is written off. In such cases, the insurance company would pay up to your $50,000 limit, and you would be responsible for the remaining $20,000.

OPCF 27 Definition and Meaning 

The OPCF 27, or Ontario Policy Change Form #27, is an auto insurance endorsement exclusive to Ontario. It provides consistent wording across different insurance companies. While the OPCF 27 standardizes the policy language, the coverage limits can vary depending on the amount of insurance purchased.

What does the OPCF 27 cover?

The OPCF 27 provides coverage for legal liability or damage to a non-owned automobile and its equipment when the vehicle is under the care, custody, or control of an insured person, either imposed by law or assumed by written agreements.

This loss or damage must result from a peril set out below for which you are insured and indicated on your Certificate of Automobile Insurance. 

What does the OPCF 27 not cover?

The OPCF 27 does not cover vehicles owned or registered in the insured’s name. It also excludes leased automobiles covered by the OPCF 5 endorsement, “Permission to Rent or Lease Automobiles and Extending Coverage to Specified Lessees,” or similar endorsements.

Opcf 27 Deductible

The OPCF 27 endorsement does not have a deductible but applies the same coverage from your policy to the non-owned vehicle. This means you must pay the deductible associated with the specific coverage used. 

Example 1:

If the non-owned vehicle is stolen and you’re legally liable for its loss, you would pay your all-perils or comprehensive deductible, as the loss was due to theft.

Example 2:

If the non-owned vehicle is damaged in a car accident that is partially or entirely your fault, your all-perils or collision deductible applies, as the loss was due to a collision.  

Does the OPCF 27 cover theft?

If you have comprehensive or all-perils coverage on your auto policy, these coverages transfer to non-owned vehicles weighing under 4500 kg. This means that if your policy includes theft coverage, the non-owned vehicle will also be protected against theft. Since comprehensive and all-perils cover theft as an insured peril, they will extend to any non-owned vehicle you are responsible for.

Does the OPCF 27 cover U-haul rentals?

A standard condition in the Ontario Automobile Policy (OAP 1) limits vehicles to a maximum Gross Vehicle Weight Rating (GVWR) of 4,500 kg. Many U-Haul vehicles, particularly moving trucks, often exceed this limit. However, the OPCF 27 endorsement can override this weight restriction, provided the U-Haul vehicle is rented for personal use for no more than seven days.

Is OPCF 27 mandatory coverage?

The OPCF 27 endorsement is not mandatory, car insurance coverage. The endorsement can be purchased for an additional premium and often bundled with the OPCF 20 – Loss of Use endorsement.  

What’s the cost of OPCF 27 coverage?

The cost of the OPCF 27 endorsement varies by insurer but typically ranges between $15 and $50 for an average coverage limit of $50,000.  The cost of the endorsement increases with higher coverage limits.

The OPCF 27 and rental vehicles during an auto claim

The OPCF 27 does not extend coverage to a rental vehicle during an insured auto claim. In these situations, the rental vehicle is considered a temporary substitute vehicle and receives the same coverage as the vehicle described in your policy that was involved in the incident. This means the rental vehicle will be covered under the same terms and conditions as your insured vehicle. 

The OPCF 27 endorsement provides coverage to a rental vehicle only when your listed vehicles are not out of service due to breakdown, repair, servicing, theft, sale, or destruction. For example, if you rent a car for vacation while your insured vehicle is still operational, the OPCF 27 endorsement transfers coverage to the rental car, subject to limits.

OPCF 27 territory/coverage in the USA 

The OPCF 27 and 27B endorsements provide coverage when travelling anywhere in Canada, the United States, and on vessels travelling between ports in those countries.