What You Need to Know About OPCF #43

Have you ever wondered what happens if your car gets stolen or ends up in an accident? The unsettling truth is that without proper protection, you might face a significant financial loss due to depreciation. That’s’ where OPCF #43 comes in.

OPCF #43 (Ontario Policy Change Form) AKA “removing depreciation deduction” endorsement, is an additional coverage you can add to your auto insurance.

Deciding whether to add OPCF #43 (Ontario Policy Change Form) to your auto insurance policy involves understanding its significance, benefits, and the scenarios in which it might be advantageous. So let’s dive into what exactly OPCF#43 is and if you could benefit from it.

What is OPCF #43?

OPCF #43, sometimes referred to as the waiver of depreciation, is an optional add-on designed to protect car owners from the depreciation of their vehicle’s value.

When a new car is purchased, it begins to depreciate the moment it is driven off the lot. This can significantly affect the settlement amount an insurance company might offer in the event the car is written off as a total loss or stolen.

By including OPCF #43 in your policy, the insurance company agrees not to apply depreciation when calculating the claim payout, essentially ensuring that you can receive the full purchase price of the vehicle or its replacement value, depending on the policy terms.

This endorsement is particularly beneficial for new or nearly new vehicles, offering peace of mind and financial protection against unexpected losses.

Here are the essential considerations:

Coverage Eligibility

• This endorsement is typically available for new vehicles and is often valid for a specific period, such as the first 24 to 48 months after purchase. Confirm with your insurer whether your vehicle qualifies.

Financial Benefits

• If your vehicle is totaled or stolen, the waiver of depreciation can save you from incurring additional costs to replace your vehicle. This peace of mind can be especially valuable if you have financed or leased your vehicle.

Impact to Your Premium

• Adding OPCF #43 may increase your insurance premium, but the additional cost is often outweighed by the potential savings in the event of a claim. Ensure you get a quote from your insurance broker to understand the specific cost to your premium and if this coverage add-on is right for you.

Validity Period and Renewal Options

• Check the duration for which OPCF #43 is valid. Some policies offer it for up to two years, while others may extend this period. Understand when the endorsement will lapse and how that aligns with your plans for the vehicle.
• Find out if you can renew OPCF #43 or purchase it again after the initial period ends. Some insurers may allow you to extend the waiver, providing added protection beyond the standard period.

Benefits of OPCF #43

Adding this endorsement to your auto insurance policy offers a range of significant benefits. For example, OPCF #43 applies regardless of who is at fault in an accident, ensuring that even if you are responsible, the payout will still be based on the original purchase price.

Additionally, If your vehicle is stolen OPCF #43 ensures you receive a payout based on the purchase price, reducing the financial impact of such a loss.

This Add-On is particularly advantageous for vehicles that depreciate faster than others, such as luxury cars, electric vehicles, or brand-new models, guaranteeing that policyholders are better shielded from steep depreciation curve and can maintain their investment’s value over time.

Is this optional coverage right for you?

Understanding these key points can be helpful when deciding whether adding OPCF #43 to your auto insurance policy.

But, the best thing you can do when it comes to figuring out what coverages you may need on your insurance policy is by talking to an insurance broker. They act as an intermediary between you and your insurance company, making sure coverage is tailored to you!