Ing + McKee

DCPD Direct Compensation Property Damage: What you Need to Know

May 12, 2022

Insurance can be hard to understand. It seems like it’s forever changing, and you never know what you are in for. As an insurance brokerage, Ing and McKee Insurance is here to help keep you informed and updated with changes that may impact you. Direct Compensation Property Damage, also known as DCPD, has been introduced as new insurance coverage for people in Alberta. Below are some changes you should be aware of.

What does this mean? Since January 1st, 2022, DCPD has been mandatory insurance. DCPD means that your own insurance company will cover you if you are not at fault in a collision caused by the other driver.

Will this affect my premium? Overall, 57% of customers will either see no change or a decrease as a result of the introduction of DCPD, and 34% of drivers will see an increase of up to 5%. Owners of less expensive vehicles to repair generally will see a decrease, and owners of more costly vehicles to repair may see a premium increase. Any claim payment where you are 100% not at fault will not impact your DCPD rating or premium.

How will this affect efficiency in insurance companies? The DCPD coverage will be more efficient in making claims, and you will only have to deal with your insurance company rather than wait on the other party’s insurance company. DCPD will result in quicker claims and faster repairs. 

What does DCPD cover in a collision where the other driver is at fault? The DCPD coverage includes damage to the insured vehicle, 

its loss of use, and contents inside the vehicle at the time of collision. However, it will not cover any personal injuries as a result of the accident.

What if the party involved is not insured? DCPD will not cover any amount of the claim if the party at fault does not have coverage. One should still purchase optional collision coverage for cases such as these and situations where you are either partially or fully at fault.

If you have other questions regarding the DCPD, please check out this website:

https://www.alberta.ca/automobile-insurance-reform.aspx

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