Resources · Glossary
Ontario Auto Insurance Glossary
No-fault, DCPD, accident benefits, OPCF 44R and more: the words on an Ontario auto policy, explained in plain English.
The basics
- Deductible
- The part of a claim you pay yourself before the insurer pays the rest. A higher deductible usually lowers the premium, but means more out of pocket if you claim.
- Liability card (pink slip)
- Proof that your vehicle is insured. Ontario drivers must carry it, and insurers can now issue it electronically so you can show it on your phone.
- Endorsement (OPCF)
- A change or add-on to the standard Ontario auto policy. Ontario endorsements are numbered forms called OPCFs, for Ontario Policy Change Form.
- Named insured and listed drivers
- The named insured is the person who owns the policy. Listed drivers are other people who regularly drive the car. Insurers expect everyone who drives the car often to be listed.
- FSRA
- The Financial Services Regulatory Authority of Ontario, which regulates auto insurance in the province, including how rates are approved.
Mandatory coverage in Ontario
- Third-party liability
- Pays if you are legally responsible for injuring someone or damaging their property. The legal minimum in Ontario is $200,000. Many drivers choose higher limits, such as $1 million or $2 million.
- Accident benefits (SABS)
- Coverage for you and your passengers if you are hurt in a collision, whoever caused it. The rules are set out in the Statutory Accident Benefits Schedule (SABS).
- July 1, 2026 accident benefits changes
- Medical, rehabilitation and attendant care benefits stay mandatory. Other benefits, such as income replacement, non-earner, caregiver, housekeeping, and death and funeral benefits, became optional. Auto insurance also became the first payer for medical and rehabilitation claims (not medications), ahead of workplace or extended health plans. Existing policies change at renewal.
- Uninsured automobile coverage
- Protects you if you are hit by an uninsured driver or by a hit-and-run driver who cannot be identified.
- Direct Compensation – Property Damage (DCPD)
- Pays to repair your car through your own insurer when someone else is at fault, provided the collision happened in Ontario with another insured vehicle. Since January 1, 2024, drivers can choose to opt out of it.
Optional coverage
- Collision (or upset)
- Pays to repair your own car after a collision with another vehicle or object, or if it rolls over, when you are at fault or the other driver cannot be identified. Usually has a deductible.
- Comprehensive
- Covers damage from things other than a collision, such as theft, fire, vandalism, hail, flooding or a falling object.
- Specified perils
- A narrower version of comprehensive that only covers the specific risks listed in the policy.
- All perils
- Combines collision and comprehensive into one coverage with a single deductible.
- OPCF 20: Loss of use
- Helps pay for a rental car or other transportation while your car is being repaired after a covered claim.
- OPCF 27: Non-owned automobiles
- Covers damage to a car you rent or borrow but do not own, up to the limit in the endorsement.
- OPCF 43: Waiver of depreciation
- For newer vehicles, lets a claim be paid without deducting for depreciation for a set period, so a total loss can be settled closer to the purchase price.
- OPCF 44R: Family protection
- Tops up your coverage if you are injured by a driver who has too little liability insurance, up to your own liability limit.
Claims and fault
- No-fault insurance
- In Ontario you deal with your own insurer for your injuries and, through DCPD, much of your car damage, no matter who caused the collision. No-fault does not mean nobody is at fault: fault is still decided, and it can affect your premium.
- Fault Determination Rules
- A set of Ontario rules insurers use to decide each driver’s share of fault, based on the type of collision, such as rear-end or lane change.
- At-fault claim
- A claim where you are found fully or partly responsible. At-fault claims usually stay on your insurance record for six years and can raise your premium.
- Total loss
- When repairing a vehicle would cost more than it is worth, the insurer pays out its actual cash value (or the amount set by an endorsement such as OPCF 43) instead of repairing it.
- Actual cash value (ACV)
- What your vehicle was worth just before the loss, taking age, kilometres and condition into account. It is often less than what you paid.
Your record
- Driver’s abstract (MVR)
- Your driving record from the Ministry of Transportation, showing your licence history, convictions and suspensions. Insurers use it when rating a policy.
- AutoPlus report
- A record of your past auto insurance policies and claims, shared between insurers. You can request your own copy for free.
- Conviction
- A traffic offence you were found guilty of, such as speeding or distracted driving. Many convictions affect premiums for about three years.
- Graduated licensing (G1, G2, G)
- Ontario’s staged licensing system. Your licence class and how long you have held it are major factors in what you pay.