What does Direct Compensation-Property Damage (DCPD) cover?

Direct Compensation-Property Damage (DCPD) is a part of automobile insurance in Ontario that specifically covers damage to the insured's vehicle when the other driver is at fault. This means that if an accident occurs and another driver is determined to be responsible for causing the damage, the insured can claim coverage under DCPD for repairs or replacement of their vehicle.

DCPD ensures that the insured does not have to deal with the other driver’s insurance company directly, streamlining the claims process. Instead, the insured’s own insurance company will handle the claim and recover costs from the at-fault party’s insurer. This system promotes fairness in situations where damages occur, as it recognizes that the insured should not suffer financially for something that was not their fault.

In contrast to the other options, which focus on specific limitations or types of coverage that DCPD does not provide, this choice accurately reflects the specific scenario in which DCPD is applicable, thereby validating its importance in the context of automobile insurance claims in Ontario.