Understanding OPCF #28: Excluding a Driver from Your Insurance

If you live in Ontario and own a vehicle, you might have come across the term OPCF #28 in policy documents or when looking for auto insurance.

Auto insurance is crucial for providing essential protection against accidents and various forms of damage. Sometimes you may have more than one person on your policy, but there might be circumstances where you want to exclude a specific driver from your policy. This is where an endorsement known as OPCF #28 comes into play for drivers in certain regions like Ontario, Canada.

But what exactly is OPCF#28, and how does it affect you as a consumer? Let’s dive in and answer some of the most common questions about this crucial insurance endorsement.

What is OPCF #28?

OPCF stands for Ontario Policy Change Form, and OPCF #28 is an endorsement used by insurance companies to exclude a specific individual from the coverage provided by an auto insurance policy.

When a driver is excluded this individual is not covered at all by the insurance policy, meaning the insurance company will not pay for claims resulting from accidents or damages involving the excluded driver.

Theres two types of endorsements that can exclude or reduce coverage for a driver. You have OPCF#28 and OPCF#28A.

• OPCF #28: reduced the drivers auto insurance coverage.
• OPCF#28A: fully excludes the driver from the auto insurance coverage.

Reasons for Excluding a Driver

There are several reasons policyholders may choose to exclude a driver from their auto insurance policy:

1. High-Risk Driver: If someone in your household has a poor driving record with multiple traffic violations or accidents, your insurance premium can skyrocket. Excluding this high-risk driver can help keep your premiums more manageable.
2. Occasional Driver: Sometimes, a member of the household may rarely use the vehicle. If this driver poses a higher risk, excluding them might make sense financially.
3. Financial Responsibility: If an individual is financially responsible for any damage they cause, they might agree to be excluded from your policy to avoid increasing your insurance costs.

Considerations and Potential Risks of OPCF #28

While excluding a driver can save on premiums, it’s not a decision to be taken lightly. Here are some important considerations:

• Legal and Financial Liability: An excluded driver who is involved in an accident will not be covered by your insurance policy. You could be personally liable for any damages or injuries they cause. So if the driver gets in an accident with another driver, and the other driver sues, the insurance company can refuse coverage.
• Household Rules and Communication: Make sure all drivers in your household understand the implications of the exclusion and adhere to the agreement. An excluded driver should not drive the insured vehicle under any circumstances.
• Impact on Future Policies: Excluding a driver might also impact their ability to get affordable insurance in the future, especially if they are young or inexperienced.

Not sure if it’s right for you?

OPCF #28 provides a policyholder with the option to exclude a specific driver from their auto insurance policy, potentially lowering premiums and reducing financial risk. However, the decision to exclude a driver comes with significant responsibilities and risks.

It is always advisable to consult with your insurance broker to ensure that you are making the best decision for YOUR situation.

This blog is intended to bring awareness about different insurance coverages and shouldn’t be considered professional insurance advice. If you’d like professional insurance advice, please reach out to your broker and if you don’t have an insurance broker, give us a call.