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.
OPCF 20, short for the Ontario Policy Change Form 20, is an optional endorsement that you can add to your standard Ontario auto insurance policy. It's commonly referred to as “Loss of Use” coverage and is designed to help pay for a rental vehicle or alternative transportation (like taxis or ride-shares) if your insured vehicle is unavailable due to damage from a covered claim.
This endorsement ensures you’re not left stranded while your vehicle is being repaired, and helps you avoid paying steep rental fees out of pocket.
When you have a valid claim under your collision or comprehensive insurance that requires your vehicle to be repaired or replaced, OPCF 20 steps in to cover the cost of a rental vehicle or equivalent transportation. The coverage begins immediately after your claim is accepted and continues until:
OPCF 20 covers reasonable transportation expenses while your vehicle is out of service due to an insured claim. This includes:
Here’s a simple breakdown of how it works:
Step 1: You file a claim for an insured event (accident, theft, etc.)
Step 2: Your insurer approves the claim
Step 3: Loss of Use coverage becomes active
Step 4: You receive reimbursement for rentals or transportation, up to your coverage limit
OPCF 20 comes with set daily and total coverage limits. These can vary by provider but generally follow a format like:
To better understand how this applies:
Usually between $20–$40 per year, depending on your insurer and limits. It's a low-cost addition with high potential savings.
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.
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.
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.
To be eligible for OPCF 20 coverage:
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.
| Feature | OPCF 20 (Loss of Use) | OPCF 27 (Non-Owned Vehicle Coverage) |
| Purpose | Pays for rental while your car is being repaired | Covers damage to a rental/borrowed car |
| Applies To | Your transportation after a claim | The non-owned vehicle itself |
| Trigger | Approved claim on your own | Driving a car you don’t own |
| Type of Coverage | Transportation costs (rental, taxi, etc.) | Physical damage + liability on rented cars |
| Must Be Purchased Separately? | Yes | Yes |
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.
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.
Q: How long does Loss of Use coverage last?
A: Until your vehicle is repaired, declared a total loss, or you hit the maximum dollar limit, whichever comes first.
Q: Can I use OPCF 20 for mechanical breakdowns?
A: No. It only applies when your vehicle is unusable due to a covered claim (collision, theft, etc.).
Q: What if no rental cars are available?
A: You can use the coverage toward ride-shares or taxis, provided you stay within your daily and total limits.
Q: Does OPCF 20 apply outside Ontario?
A: Yes, as long as your policy includes Ontario-based coverage and the claim occurs in a jurisdiction your insurer covers (typically Canada/U.S.).
Q: Can I add OPCF 20 at any time?
A: Yes, as long as your policy is active and includes collision or comprehensive coverage.
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.
Posted May 29, 2025