Understanding OPCF 20: Loss of Use Coverage

Apr 18, 2024

In the world of auto insurance, it's important to know which coverages could protect you in different situations. One such coverage is OPCF 20, an endorsement that, in the event your vehicle needs repairs following an accident and claim, can significantly reduce your stress and financial load. This article goes into detail about OPCF 20, or Loss of Use Coverage, highlighting what it covers, it's advantages, and the reasons it could be a good idea to add it to your auto insurance policy, **whispering in the ear** especially given the unpredictability of the modern world.

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What is OPCF 20?

OPCF 20, or the Ontario Policy Change Form 20, is an endorsement added to standard auto insurance policies. This coverage, specifically referred to as "Loss of Use," assists policyholders with the cost of a rental vehicle while their car is being repaired or replaced following a claimable event such as an accident or theft.

How Does OPCF 20 Work?

When you have a claim under your collision or comprehensive insurance that requires your vehicle to be in the shop for repairs, OPCF 20 steps in to cover the cost of a rental vehicle. The coverage kicks in immediately after the claim is accepted and lasts until your vehicle is repaired or replaced, or until you reach your policy's coverage limit.

Coverage Limits and Costs

Typically, OPCF 20 covers a daily and total maximum amount for rental vehicle costs. For example, your coverage might limit you to $50 per day, up to a total of $1,500. Costs to add this endorsement to your policy can vary but are generally affordable, often seen as a worthwhile investment compared to potential out-of-pocket costs for rental vehicles.

Is OPCF 20 Mandatory in Ontario?

The short answer is no, OPCF 20 is not mandatory. It's an optional coverage that provides additional peace of mind but isn't required by law. However, given recent market conditions, it's an option worth considering more seriously.

The Impact of Supply Chain Issues

Since the beginning of COVID-19, global supply chains have been disrupted significantly. This has had a profound impact on the auto industry, with delays in obtaining necessary parts for repairs causing extended repair times. As a result, the demand for rental vehicles has surged, pushing up costs and availability issues.

Previously, insurers might have occasionally covered costs above the OPCF 20 limits to assist clients during such delays. However, with rising costs and longer repair times now the norm, many insurers are strictly adhering to the specified limits in their policies.

Why Consider Increasing Your Coverage?

Given the current market conditions, extended waiting times for parts and increased costs for rentals, it's crucial to reassess your OPCF 20 coverage limits. For a slight increase in your premium, you can significantly raise your coverage limits. Investing an additional $25 annually, for instance, could protect you from hundreds or even thousands of dollars in potential rental fees if your car is sidelined for an extended period.

Understanding OPCF 27: Liability for Damage to Non-Owned Vehicles

While OPCF 20 covers the cost of a rental vehicle while your vehicle is under repair, OPCF 27 is another useful endorsement but serves a different purpose. OPCF 27, also known as the "Liability for Damage to Non-Owned Automobiles" endorsement, extends your existing auto insurance coverage to vehicles that you do not own. This includes rental cars or a vehicle you may borrow from a friend or family member.

Key Differences Between OPCF 20 and OPCF 27

Purpose and Coverage:

  • OPCF 20 (Loss of Use): This coverage helps you manage the costs of renting a vehicle when your insured vehicle is being repaired due to a claim under your collision or comprehensive coverage. It essentially covers rental costs.
  • OPCF 27 (Liability for Damage to Non-Owned Automobiles): This extends your collision and comprehensive coverage to any vehicle you rent or borrow within Canada or the U.S. It covers damage to the rental or borrowed vehicle, essentially acting like your regular auto insurance but on another car.

Why Consider OPCF 27 Alongside OPCF 20?

Given the complexities of modern insurance needs, pairing OPCF 27 with OPCF 20 can be particularly advantageous. While OPCF 20 ensures you have a vehicle when yours is unavailable, OPCF 27 protects you from significant out-of-pocket expenses due to damages to a non-owned vehicle. This dual coverage can be critical, especially when rental vehicles are likely to be used for longer periods due to delays in repairs as highlighted by recent supply chain issues.

Additional Coverage Options You Might Want To Consider To Further Enhance Your Auto Insurance Policy

When considering auto insurance, understanding all your options for additional coverage can be crucial for ensuring comprehensive protection. Below, we explain several other key endorsements that can be added to your standard policy. The information provided is sourced from the Optional Coverages section on the official Financial Services Regulatory Authority of Ontario (FSRAO) website, which you can visit to dive deeper into comprehensive coverage solutions.

  • Coverage for Rented or Leased Vehicles (OPCF 5): If you're driving a vehicle owned by a leasing company, this endorsement is essential. It extends your existing insurance coverage to a vehicle that you lease, ensuring that it receives the same protections as a vehicle you own outright.
  • Removing Depreciation Deduction (OPCF 43): Ideal for new vehicle owners, this endorsement prevents the insurer from applying depreciation to your vehicle in the event of a loss or damage claim. It ensures you receive the full value of your vehicle without depreciation, typically available for up to 24 or 30 months from the vehicle's purchase.
  • Family Protection Coverage (OPCF 44R): This vital endorsement provides additional protection if you or a family member is involved in an accident with a driver who has insufficient or no insurance. It aligns your coverage limits with those of your own third-party liability, safeguarding against underinsured or unidentified drivers.


Understanding your auto insurance options doesn't have to be overwhelming. With this guide to OPCF 20 , you're well-equipped to make informed decisions that enhance your coverage and ensure your peace of mind. Remember, the right insurance isn't just about meeting legal requirements, it's about creating a safety net for the unpredictable. Ready to enhance your auto insurance? Get in touch with us today, and let us help you find the perfect coverage for your lifestyle.

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