Driving Without Ownership: Understanding OPCF 27 Coverage

It’s pretty normal to drive someone else’s car, whether you’re borrowing a vehicle from a friend or family member or renting one while out of town. A lot of people assume their personal car insurance will cover them in these situations, but that’s not always the case. It actually depends on whether you’ve added the OPCF 27 endorsement to your policy. Here’s what it is, why you need it, and how you can get it.

OPCF 27: Liability for Damage to Non-Owned Automobiles

OPCF 27 coverage is also known as Legal Liability For Damage To Non-Owned Automobiles. It is an optional add-on that Ontario drivers can include with their auto insurance coverage. If you get into an accident while driving someone else’s car and have OPCF 27, you’re basically protecting their insurance from taking a hit. This helps keep their claim history clean and prevents their premiums from going up.

With OPCF 27, you’re typically covered for things like physical damage, theft, third-party liability, and accident benefits when you’re driving a rented or borrowed vehicle.

OPCF 27 coverage kicks in when you’re driving, using, storing, or parking a non-owned automobile in Canada or the U.S., but only under certain conditions:

• You’re legally responsible for any damage.
• You’ve agreed, through a contract or agreement, to be responsible for the damage.

However, this coverage won’t apply if the vehicle is owned or registered in your name or belongs to someone who lives with you.

What does OPCF 27 cover?

An OPCF 27 endorsement extends your insurance to cover rented or borrowed vehicles. Here’s what you get when you add OPCF 27 to your car insurance policy:

• Third-party liability coverage: Covers damages, injuries, or deaths caused to others while you’re driving a borrowed or rented vehicle.
• Accident benefits coverage: Takes care of medical expenses, funeral costs, and even income replacement if you’re unable to work due to an accident.
• Collision insurance: Covers repair or replacement costs if the rental car is damaged in a collision.
• Comprehensive insurance: Covers losses from things like theft, vandalism, weather damage, falling objects, or fire.

Collision and comprehensive coverage are especially valuable since rental companies usually charge extra for these protections.

Conditions and Limitations of OPCF 27

While OPCF 27 offers great coverage for rental and borrowed vehicles, it does come with some limits and conditions. Here’s what you need to keep in mind:

• It only covers drivers listed on your insurance policy.
• There’s a 30-day limit for rental car protection.
• The coverage amount is capped, typically between $25,000 and $50,000.
• It only applies to standard vehicles that weigh less than 4,500 kilograms.

So, while OPCF 27 is helpful, it’s not complete protection for every situation.

How Much Does OPFC 27 Cost?

Adding the OPCF 27 endorsement to your policy typically costs around $50 or less per year. Even if you only rent a car once, it’s usually cheaper than paying the rental company’s daily insurance fees, which can add up quickly.

How does OPCF 27 coverage work when you are involved in an at-fault collision?

If something happens while driving a rental car, and you have both rental insurance and OPCF 27, you can choose which policy to use for the claim.

The same goes for borrowing someone else’s car—you can file a claim under your OPCF 27 or the car owner’s insurance. However, keep in mind that whichever policy you claim under could see an increase in premiums, so the owner will probably want you to file it under your OPCF 27 policy.

Do You Need The OPCF 27 Endorsement?

Whether you need the OPCF 27 endorsement really depends on your driving habits. If you often rent cars or borrow vehicles from others, it’s definitely worth having for that extra protection. But if you only drive your own car, you probably don’t need it.

How To Add OPCF 27 To Your Policy

If you want to add OPCF 27 coverage to your car insurance policy, reach out to our expert team at Oracle RMS. One of our licenced insurance brokers can help you decide if this policy is right for you. We can also help you update your car insurance coverage by finding and comparing the best car insurance quotes from top insurance companies in your area.

You’re planning a vacation with the family and as a part of your trip, you decide to rent a car for the week. Great! A rental car is an excellent option to get around your vacation destination easier. But, do you need to purchase insurance for your rental car?
Of course! There are many ways to protect your rental car and while there’s no “right” way, there are some options that are more budget-friendly than others.

The common question that many licensed drivers have is that whether the rental car in covered under their existing auto insurance of their own vehicle. The answer is may be, or may be not. Rental car insurance can be included as part of a personal auto insurance policy through the purchase of an add-on, but it’s  always a good idea to check your existing policy to be sure if you have this inclusion. Some premium credit cards  also offer rental car insurance, but the limits for this are pretty low. Also, travel insurance packages  may contain a component on rental car insurance. That being said, it’s wisest to work with a licensed insurance expert  to review your insurance to ensure  that  it meets your needs and you are covered.  In layman’s terms, your auto insurance will cover a rental car if you’ve added an optional coverage to your policy known as “OPCF 27” – otherwise known as “Liability for Damage to Non-Owned Automobiles.” Here’s how it works and why you might need it.

What is OPCF 27?

Some drivers may have included the optional rental car insurance as a part of their policy upon purchase, or they can purchase it on a separate occasion. OPCF 27, or “Liability for Damage to Non-Owned Automobile(s), and Other Coverages When Insured Persons Drive, Rent, or Lease Other Automobiles” is an additional coverage that extends your existing coverage for loss or damage to non-owned automobile resulting from the control, custody, or care of the non-owned automobile by an insured driver. It also covers the person named on the policy if they drive another automobile, whether rented or leased. Under OPCF, the insured’s liability is covered for damages or losses, and it can be covered for a number of specified perils, comprehensive perils, or all perils.

There are limitations with  OPCF 27. For one, this coverage is an endorsement and not a standalone plan, so you can’t purchase it if you don’t own a car that you’ve insured yourself but rent out vehicles on occasion. This coverage will not cover rental cars that are being used without the lessee’s or owner’s consent and there may be payout limits.

How much does OPCF 27 cost?

To add the OPCF 27 endorsement it is an additional cost per year. There’s no point in purchasing it if you never rent vehicles, but considering you’re reading this article, it’s safe to assume you plan on renting a car at least once in a blue moon. This endorsement is worth the cost even if you only rent a vehicle once a year, and double that if you rent on a regular basis. The rental company will offer insurance as well, but they’ll charge you daily. These fees can add up very quickly, and if you’re planning to use your rental vehicle for a few days or upwards of a week, it’s wiser to go with the endorsement.

Options for rental car insurance

As mentioned prior, when you’re insuring a rental vehicle, you’ll have a few options. OPCF 27, or rental car insurance, is one option to include with your current auto insurance policy, but you may also purchase insurance via three other means.

One is through a travel insurance package. If you’re vacationing, you may have purchased travel insurance. Many travel insurance products will offer limited rental car insurance, but these typically focus solely on covering damage and not liability.

Credit cards are another option. Most major credit cards will offer some level of rental car insurance, but the coverage will be subject to a number of conditions. One specific condition is that the rental car reservation must have been paid through the credit card that includes the coverage. Rental car coverage may be optional for some credit cards and requires arrangement in advance.

You can also purchase rental car insurance through the car rental company. Unfortunately, as insurance policies are significant revenue for most car rental companies, this can be a very expensive option and premiums will typically be charged daily. To avoid any surprises, familiarize yourself ahead of time with what the rental car company offers or discuss with a rental agent.

If you don’t purchase insurance through the rental car company because you already have coverage via your own policy, travel insurance, or your credit card, ask your provider for proof of insurance that you can present to the rental car company.

Comprehensive auto insurance for all scenarios 

Knowing whether or not you need rental car insurance, or how it works, can be difficult. You can’t predict the future. It’s recommended you work with a broker to determine your insurance needs accurately, as a one-size-fits-all policy may not be effective for everyone’s particular coverage needs.

Oracle RMS can help you get comprehensive auto insurance for all scenarios.

Get a free quote with us to get started on a plan tailor-made around you and your needs.

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Are you commuting this winter? Read six of our top winter driving tips.

Introduction 

The weather is changing and the snow is falling. But is your driving winter-ready? Whether you’re a new driver or a seasoned one, it’s never a bad time for a quick winter driving refresher. Keep reading to see our list of safety-maximizing winter driving tips.

Tip #1: Get Your Vehicle Ready for Winter

As the weather gets colder, you’ll want to prepare your vehicle for the increasingly difficult road conditions ahead. Maybe you need to make sure your vehicle has adequate heating. Or perhaps you need to replace your summer tires with a set of sturdy winter tires. From rustproofing to keeping gas tanks semi-full, there are multiple changes that you may have to make.

Tip #2: Learn How to Handle Skidding in Your Vehicle

Depending on the type of car you have, your best shot at handling skids could change dramatically. Do you have an anti-lock braking system? Does your car use rear-wheel drive or four-wheel drive? Your skidding solutions may differ dramatically. As such, you may want to start the season by doing a bit of reading on the skid management strategy that works best for you.

Tip #3: Keep a Healthy Distance on the Road

Between black ice, slick patches, and increased brake times that often come with colder weather, winter roads often mean that driving bumper to bumper isn’t always safe. Give yourself plenty of room to stop when you see the light turning red and try to give yourself more space when you’re on the road.

Tip #4: Have a Winter Driving Safety Kit

When you’re stranded by the side of the road, the last thing you want is to be trapped with nothing in your car. Some items to pack would include snacks, first aid kits, jumper cables, blankets, and water. This might sound over the top to some, but it’s better to be safe than sorry.

Tip #5: Encourage Your Staff to Drive Responsibly

If you own a commercial fleet, your employees aren’t regular drivers — they’re representatives of your company. To that end, rewarding team members who drive responsibly can do a lot to build workplace morale while promoting safety.

Tip #6: Update Your Insurance

Sometimes even the safest drivers can get into winter-time accidents. Having an up-to-date commercial auto insurance policy can make a huge difference in this regard.

Protect Your Vehicle With Commercial Insurance

Are you looking to insure your commercial vehicle? We can help! Request your FREE commercial auto insurance quote today!

Are winter tires worth it? Read these snow tire myths and facts to find out!

Introduction

Are you wondering if winter tires are a good idea for your vehicle this year? Will your all-season tires be enough to help you get by? 

With titles like “all-season” and “all-weather” being attached to tires, it isn’t easy for drivers to separate fact from fiction. Our list of facts and myths will help you uncover the truth about winter tires.

Winter Tire Myths

Canadian winters are hard enough as it is. Don’t let these snow tire myths put you at risk:

Myth #1: You Can Drive at Normal Speeds With Winter Tires

Even with their winter-ready attributes, snow tires will still slide if you hit an ice patch. You need a combination of winter tires and safe driving to lower your chances of getting into a serious accident.

Myth #2: Deflating Your Tires Can Give You More Traction

While deflating your tires may seem like a cost-saving hack, it’s actually a move that could put you in danger. If your tires are under-inflated, you could be driving your way towards a flat while also decreasing the lifespan of your all-season set. 

Myth #3: You Can Get Away With Using Two Winter Tires

Winter tires and all-season tires have different treads and different levels of traction. In these circumstances, it’s easy to lose control of the vehicle if you have the misfortune of hitting an ice patch. 

Winter Tire Facts

We’ve just talked about winter tire myths. But what are the facts? Keep reading to find out.

Fact #1: Winter Tires are Best-in-Class on Snow-Covered Roads

When it comes to ice and snow, winter tires are hands down the best in the business. Their tread makes them uniquely capable of gripping snowy roads in ways that other tires simply can’t replicate. 

Fact #2: Winter Tires Give You Extra Protection Throughout the Colder Months

Winter tires aren’t just your best shot at navigating snowy weather — they’re an excellent way to avoid hydroplaning when the roads are wet. The same rubber that makes these tires so good at handling snow is a major part of what makes them effective at lower temperatures.

Fact #3: Winter Tires Can Save You Money

By purchasing winter tires and driving safely, you might be eligible for a discount on your auto insurance. If you haven’t been taking advantage of these savings, we can help you find more opportunities to lower your insurance costs.

Insure Your Vehicle Through Oracle RMS

Even with winter tires and a picture-perfect driving record, car accidents can happen to anyone. Request your FREE auto insurance quote today!

Rust and ice can add wear and tear to your vehicle. Learn how you can protect your fleet this winter.

Introduction

If there’s one thing that drivers and car salespeople can agree on, it’s that rust and corrosion can single-handedly bring down vehicle values. Cosmetic concerns aside, corrosion can damage your car’s wheels, brakes, and electrical system beyond repair if it’s allowed to spread. 

As a business owner with a commercial fleet, you have a vested interest in keeping your vehicles on the road as long as possible. Read on to find out how you can keep your fleet safe from rust and ice this winter.

What Winter Means for Your Commercial Vehicle

At its core, corrosion is a chemical reaction that breaks down metal objects, like cars and trucks, over time. 

During winter, your fleet will see a lot of water and ice simply because of weather and road conditions. In addition, it’s not unusual for salt and dirt to create cracks in your vehicle that can speed up the oxidizing process. 

For this reason, fleet owners have to be especially vigilant during the colder months.

Use These Tips to Protect Your Fleet This Winter 

Our top winterizing tips for vehicle owners include:

• Check Your Gas: As the temperature drops, frozen water vapor can collect in your gas tank and leave your engine unable to start. Just to be safe, you’ll want to make sure that your gas tank is always at least half full.  
• Update Your Commercial Insurance: In winter, it’s all too easy for accidents to happen. If your vehicle is involved in a collision, you’ll want to make sure that you have adequate coverage through your commercial auto insurance policy.
• Change Your Tires: Even though all-weather tires sound like they should be ideal for all seasons, winter tires may be better if you’re expecting to drive in icy conditions. 
• Rustproof: With rust, an ounce of prevention is quite literally worth a pound of cure. The right anti-rust treatments can help you stop corrosion in its tracks.

Your Anti-Rust Treatment Options 

For commercial fleets, there are two primary rustproofing options:

1. Oil With Paraffin Added to It

This anti-rust treatment is a popular yearly solution that can protect both your vehicle’s “hot zone” areas and the hard-to-reach spots that are especially at risk of corrosion.

2. Electronic Rustproofing

This relatively new rustproofing method uses electrical currents to disrupt the rusting process. 

Winter-Proof Your Fleet With Oracle RMS

When your livelihood depends on keeping your vehicle fleet in good shape, protecting your investment just makes sense. Request your FREE commercial auto insurance quote today!

When you’ve been in a fender bender, the right technician can make your car as good as new. Here’s your guide to dealing with auto body shops. 

Picture this:

You’ve been in a recent accident that has left your car undrivable. Your windshield is cracked, your paint has been scratched, and there’s even a dent on the passenger side. 

In short, you need to find an auto repair shop fast.

How do you ensure that you’ve found the right technicians? What happens during the repair process? We’ve got all the answers for you here.

The Auto Repair Shop vs. Dealership Dilemma

In the aftermath of an accident, sometimes it makes sense to ask your dealership to make repairs. After all, the technicians will likely be familiar with your car model. However, the high fees and the tighter deadlines associated with dealership repairs often give car owners pause. 

If that’s you, then you may wish to consider working with an auto repair shop. 

How to Find the Best Auto Body Shop

If you’re interested in working with an auto repair shop, here are our top tips:

1. Don’t Be Fooled By Appearances

Shops with excellent facilities and multiple managers might project competence, but they’ve often got a lot of expenses to cover. As such, a smaller independent shop may be able to offer you the same repairs at a better price.

2. Get Multiple Quotes

Is one shop charging more for labour than another? Are the parts significantly more expensive at one or two shops? Collecting quotes can save you money while giving you a sense of what you can expect from the shops in your area. 

3. Check the Reviews

Thanks to the internet, companies can’t hide a track record of negative customer experiences. Online and offline reviews will often give you the inside scoop on how an auto body shop treats its customers.

Here’s What You Can Expect From an Auto Repair Shop

Many shops will offer text and email updates or help with securing a rental or a loaner. And by asking questions about insurance, warranties, and invoicing expectations, you can often vet auto repair shops even further. 

However, because it’s not unusual for insurance providers to establish partnerships with auto body shops, you may want to review your collision insurance or auto insurance policy. Your insurer will have the information you need.

Need to Update Your Auto Insurance? Oracle RMS Can Help!

Here at Oracle RMS, we pride ourselves on standing by our clients. If you’re ever in an accident, our dedicated, 24/7 claims line at 1-866-CLAIM-20 is standing by and ready to help. Request your FREE auto insurance quote today!