Direct Compensation - Property Damage (DCPD) Questions and Answers

Is DCPD mandatory?

Yes, DCPD is a mandatory coverage. Where it applies, your own insurer will cover the portion of your automobile damage, contents damage and loss of use for which you are not at-fault.

Will I still need to purchase collision coverage?

You will still need to purchase collision coverage if you would like your at-fault damages to your vehicle to be covered by your insurer.

Will DCPD apply to all automobile accidents?

Generally, yes, DCPD applies when:

• two or more insured vehicles are involved in an accident and their vehicles, contents, or both suffer damages; 
• the accident takes place in a jurisdiction where DCPD coverage is mandatory; 

AND 

• the insurers of two or more vehicles involved in the accident are licensed (or have signed an undertaking to abide with DCPD) in that jurisdiction. 

Are there any exceptions to the application of DCPD if the above conditions exist?

Yes. Under the Fault Determination Regulations, where the driver of one of the vehicles is charged with certain driving offenses and the driver of the other vehicle is at least partially at-fault under the regulation, the degree of fault will be determined by adjusters representing each insured and may or may not align with the DCPD Regulations dependent on the specific circumstances.

Direct Compensation for Property Damage (DCPD) with regards to my vehicle damages

If DCPD coverage applies to the claim, your own insurer will be responsible for the portion of your not at-fault damage. However, this does not affect the apportionment of fault for premium rating purposes. Basically, if you’re not at-fault your insurer will bear the cost to repair your vehicle and this should not affect your rates. If you’re totally or partially at-fault your insurer will still bear the costs of repairing your vehicle for your not at-fault portion. However, because of your at-fault status this may affect your rates.

Summary of who Pays for your Property Damage  

• When DCPD Applies
  • If you are "at-fault": own insurer: collision coverage (if purchased).
  • If you are not "at-fault", own insurer: DCPD coverage.
• When DCPD does not Apply
  • If you are "at-fault": own insurer: collision coverage (if purchased).
  • If you are not "at-fault": other insure under other driver’s liability coverage

How will "fault" be determined under DCPD?

"Fault" is determined under the Insurance Act Automobile Insurance Fault Determination Regulations. These regulations are based on past automobile accident fault settlements which were made prior to the introduction of DCPD in 2015. Practically, consumers see very little, if any, change to how accident fault is apportioned prior to the implementation of DCPD.

What if I'm not satisfied with the degree of fault assigned or the settlement offered by my insurer?

Learn about the consumer complaint process.

Under DCPD, can I sue the at-fault party for damages to my contents?

Generally, no. Under DCPD your own automobile insurer will cover the costs of your contents to the extent you are not at-fault, provided the contents were not being “carried for reward”. You may be able to recover your at-fault portion of your content damages under your home insurance.

If your contents were “carried for reward”, you may be able to recover these damages under a commercial policy or from the at-fault party depending on the circumstances.

Under DCPD, who will pay loss of use/rental costs?

DCPD will cover your loss of use/rental costs to the extent you are not at-fault. You may also have coverage for your at-fault portion of costs, dependent on whether you purchased the appropriate endorsement with your policy.

Is there a deductible with DCPD coverage?

Not if you’re 100% not at-fault. However, if you are partially at-fault that portion of your collision deductible will be applied to your recovery under your collision coverage.

What happens when DCPD does not apply because a party to the accident was insured by an unlicensed insurer who did not sign an undertaking?

As noted above, where DCPD does not apply, the accident will be settled under the previous fault determination rules, which are essentially the same as the DCPD Regulations . Your insurer is only responsible for your not at-fault portion. However, if you have collision coverage insurers will generally pay to repair your vehicle and subrogate against the other insurer for your not at-fault portion of the costs. 

PEI registered vehicles are required to be insured by insurers licensed in PEI, and the vast majority of vehicles insured in NS, NB, QC and ON are also insured by insurers licensed in PEI, therefore, DCPD will apply to the vast majority of collisions in PEI.

Who can I contact for more information?

Superintendent of Insurance
Justice and Public Safety
Shaw Building, 95 Rochford Street
Charlottetown, PEI
Telephone: (902) 368-4550
Email: licensing@gov.pe.ca