Also called Direct Compensation Property Damage (DCPD), this insurance covers the cost of loss or damage to your car in a collision for which you were not entirely responsible. To qualify, the other driver must be identified, insured and found to be at least partially at fault. In some provinces, you can no longer sue another person for damage to your car.
How does it work? Your insurance company considers your fault level and deductible to determine if you’re eligible for compensation. You receive compensation if you’re determined to be partly responsible or not responsible at all for the accident. DCPD is only available in New Brunswick, Nova Scotia, Ontario, P.E.I. and Quebec. Be sure to review your car insurance policy for specific details, restrictions and exclusions.