Understanding OPCF #16: Suspension of Coverage

When it comes to auto insurance in Ontario, one endorsement that vehicle owners might encounter is the OPCF #16 – Suspension of Coverage.

Whether you’re planning an extended trip, temporarily storing a vehicle or dealing with other situations where you won’t be using your car for a while. This policy change can help you save on your premium by suspending certain coverage on a vehicle you DON’T plan on using for a specific amount of time.

This blog post will delve into what OPCF #16 is, when it is useful, and scenarios where you might not need it.

What is OPCF #16?

The Ontario Policy Change Form (OPCF) 16, commonly known as the Suspension of Coverage, is an endorsement that allows the policyholder to suspend certain coverages on their auto insurance policy temporarily.

Essentially, it reduces the coverage—and subsequently, the premium cost—during periods when the vehicle is not in use.

For example, say you have a car you only use in the summer like a convertible, you can suspend the coverage on it for the winter months when you won’t be using it to save a little bit on your insurance premium.

Now suspending the coverage doesn’t suspend ALL the coverage, it just leaves with the bare minimum you need when storing, so say there was a fire, and the vehicle was damaged it would still be covered. You just wouldn’t be covered if you drove the car while coverage was suspended, and the vehicle was damaged.

When is OPCF #16 Useful?

Seasonal Storage:

• Trailering Enthusiasts: If you own a recreational vehicle, such as a trailer or a camper that you only use seasonally, OPCF #16 can be beneficial. By suspending coverage during the off-season, you can save money.
• Snowbirds: Individuals who spend a significant part of the year in a warmer climate while their vehicle remains in storage can benefit from suspending their coverage during their absence.
• Summer Cars: If you have a car you only drive in the summer, you can suspend the coverage in the winter because you only use the car seasonally.

Financial Savings:

• Temporary Non-Use: For various personal or financial reasons, you might decide not to use your car for a while. OPCF #16 can help reduce your expenses during such times.

When Wouldn’t You Need OPCF #16?

1. Daily Commuters:

• If you rely on your vehicle daily for commuting, school runs, or errands, suspending coverage wouldn’t be practical.

2. Amateur Weekend Drivers:

• Enthusiasts who use their cars, particularly high-performance or classic vehicles, only on weekends might still require coverage.

3. Risk of Theft or Damage:

• Even if you aren’t driving your vehicle, there are risks of theft, vandalism, or weather-related damage that comprehensive coverage can protect against. In such cases, you might prefer to maintain full coverage.
• Stored Vehicles: If your car is stored in a place prone to environmental hazards, like flooding or falling tree limbs, maintaining comprehensive coverage is crucial.

4. Leasing or Financed Vehicles:

• If you are leasing or financing your vehicle, your lender might require you to maintain full coverage as part of the agreement, making suspension of coverage a non-option.

Is this right for YOU?

OPCF #16 is a valuable tool in the auto insurance arsenal, offering flexibility and cost savings during periods when you don’t need full coverage on your vehicle.

However, it’s essential to evaluate your specific circumstances and needs before opting for this endorsement.

As always consult your insurance broker on whether this policy change could be beneficial to you.