What You Need to Know About the DCPD Changes In Alberta
All auto insurance policies in Alberta will have the new Direct Compensation for Property Damage (DCPD) coverage included since the change was made back in January. This coverage is used in most other Canadian provinces, in which you deal directly with your insurer instead of the other drivers to recover damages. Direct compensation makes it easier to make a claim for property damage if you’ve been in a collision that was not your fault. Considering the changes, you may need a brief refresher on how everything works. To help you out, we’ve put together a brief article on this subject. If this is something that you want to learn more about, read on as we discuss everything you need to know about the DCPD changes in Alberta.
What Does the DCPD Cover?
DCPD coverage does not change how much you pay for your car insurance but who pays for the damage. It applies to all private passenger, recreational and commercial vehicles and covers damage to your vehicle, damage to your vehicle’s contents, and loss of use. You still need to buy coverage for collision insurance if you would like your at-fault damages to be covered. DCPD coverage only applies in the case of not-at-fault accidents. As of January 1, 2022, DCPD coverage is mandatory in Alberta and automatically included in all insurance policies.
How Does This Affect Your Insurance Premium?
The Alberta government expects that the DCPD rating system will help stabilize insurance premiums for the long term by better aligning them with the costs associated with repairs for a vehicle. While most drivers will either see a decrease or no change in their premiums, owners of high-end cars may see a steep increase under the new rating system. It’s estimated that nearly 60% of drivers will either see a reduction or no change in their premiums under DCPD.
DCPD insurance is mandatory and does not have a deductible by default. However, an insured can elect for a deductible to be added to the policy in exchange for a discount on their premium. If you do this, note that even if you are not at fault in an accident, you will still be on the hook for paying back any deductible amount out of your own pocket if your vehicle is deemed unsafe to drive. DCPD premiums will be bundled into the price of all basic auto insurance policies in Alberta, and they will appear on your insurance certificate. Your broker can provide you with a breakdown of your rates if you would like further information.
We hope this article proves to be useful when it comes to helping you gain a better understanding of the DCPD changes in Alberta. As you can see, the changes are rather simple and shouldn’t cause any issues for you down the line. Feel free to look back on this article if you ever need a refresher on the DCPD changes.
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