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Choosing the right car insurance coverage can be tricky, especially when it comes to understanding what you'll receive in the event of a total loss. Two key Ontario Policy Change Forms, OPCF 19 and OPCF 19A, significantly impact your payout.
This blog post will break down the crucial differences between these two options: OPCF 19, which limits your payout to the lower of the actual cash value (ACV) or a pre-determined amount, and OPCF 19A, the agreed value endorsement, which guarantees a specific payout based on a pre-loss appraisal. Understanding these differences will help you make an informed decision about the best protection to include in your Ontario car insurance policy.
OPCF 19 is also known as Limiting the Amount Paid for Loss or Damage Coverages. It will include the maximum amount your insurer will pay out in the event of a loss. The insurer will pay the lesser of the ACV (actual cash value) at the time of the claim, or to the limit of OPCF 19. This endorsement sets a limit on the insurer, usually the appraised value of the vehicle.
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In Ontario, if you are reporting a car accident in Ontario and your vehicle, originally worth $25,000, was appraised at $20,000 after the accident, your insurance payout might be limited. If your OPCF 19 coverage limit is $15,000, you'll likely receive only $15,000, even though the appraisal is higher. Most insurers will pay the lower of the appraisal value or your policy's coverage limit.
OPCF 19A, is the Agreed Value of Automobile(s) Endorsement. This endorsement will guarantee to pay the amount stated in the agreement. The amount is pre-determined by the vehicle’s appraisal. If you own a classic car, you’ll want to ensure you have OPCF 19A on your policy and ensure you know which perils are included.
You can find a PDF of OPCF 19A on the FSRAO website.
The key difference between these two policy modifications is that OPCF 19 will only cover the limit as outlined in your auto insurance. On the other hand, OPCF 19A will pay the amount stated in the agreement of your vehicle, which is usually the full appraisal amount.
Endorsements such as OPCF 19/19A are not a legal requirement to drive in the province. They are only additions you can add if you seek additional protection for your car insurance in Toronto, or another city.
For classic or collector cars (generally over 20 years old), OPCF 19A is the recommended insurance endorsement. It guarantees payment of the agreed-upon appraised value in case of a total loss, unlike OPCF 19, which might pay significantly less based on the insurer's assessment of the vehicle's current value. Always specify OPCF 19A when insuring a collector car and consider regular appraisals to maintain its insured value.
Adding OPCF 19/19A is as easy as contacting your broker and letting them know about your decision. Having a professional car appraisal done beforehand can also support the process, as you’ll have proof of the cost if there is a dispute. You want to ensure you are getting fair value for your vehicle.
You can add OPCF 19/19A during the term of your coverage, without needing to renew your auto insurance. Keep in mind that you may see an increase in your monthly payments when you add additional options, but it can help you if you are submitting a car insurance claim.
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Digital Content Writer
Kayla-Jane has been a content writer with ThinkInsure since 2020. She creates insurance content for auto, home, and commercial. Kayla-Jane has a diploma in Journalism.
| Categories | Auto |
|---|---|
| Tags | Auto CoverageAccidentsAuto Claims |
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