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Allstate Ontario Reform overview January 2024 | web content & FAQs

The Ontario government introduced legislation to give Ontarians better options for auto insurance coverage. The most recent change going into effect on January 1, 2024, is the amendment to the Insurance Act, which allows an insured to choose not to recover damages from their insurer (opt out) under the Direct Compensation for Property Damage (DCPD) coverage.

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Rest assured, with Allstate you have a team you can trust, and personalized care and advice to help ensure you have the right coverage. We’ll help to navigate you through the changes.


What is DCPD?

DCPD, also known as Direct Compensation for Property Damage, is a coverage that allows your insurance company to cover the costs of repairing or replacing damages to your vehicle and its contents in an accident where you are not at-fault.

Is DCPD coverage mandatory?

As of January 1, 2024, DCPD will no longer be a mandatory coverage for Ontario customers’ personal auto insurance policies.

Will you remove the coverage automatically?

Removing DCPD is optional. If you’d like to remove the coverage, please contact your Allstate agent.

If I remove the coverage,what does this mean in terms of my coverage?

If you choose to opt out of DCPD, you will have no auto insurance coverage to fix and pay for any damage to your vehicle and its contents if you are not at fault. You will also have to pay for the cost of towing your vehicle and any other costs related to the collision.

It also means that optional coverages like Collision or Upset will no longer be available for purchase. These provide coverage for your vehicle if you are at fault. Also, you will have no right to make a claim from your insurance company or from the other driver, even if the other driver is at fault.

Is there a premium with DCPD coverage?

Yes, there is a premium associated with the coverage. Please contact your insurance agent who can suggest ways to reduce your premium.

What are the other mandatory coverages that are part of my vehicle policy?

Liability coverage is a mandatory coverage that protects you if you are in an accident and you are held liable for the injury to or death to other people. It also covers damage to their vehicle or property.

Accident benefits is also mandatory and covers medical bills, rehabilitation, funeral costs, and loss of income due to disability.

Neither of these coverages pay for damage caused to your own vehicle.

Do I need comprehensive coverage?

Comprehensive coverage is not mandatory. However, it covers perils when you’re not driving your car, like theft, fire, vandalism, and falling objects. We recommend contacting your local Allstate Agent to see if this coverage is right for you.

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