The Alberta Government has passed changes that introduce Direct Compensation for Property Damage (DCPD) coverage to all automobile insurance policies throughout the province effective January 1, 2022. Here is what you need to know.
What is Direct Compensation for Property Damage (DCPD) coverage?
- DCPD is a coverage that applies to your not at-fault portion of a collision between two vehicles.
- This does not change the automobile coverage, only who pays for the damage.
- If your vehicle is involved in a collision and you are not-at-fault, your vehicle damage will be paid for by your DCPD coverage.
- If your vehicle is considered partially at-fault, then the not-at-fault portion will be paid by your DCPD and your at-fault portion will be paid by your collision coverage (if purchased).
What are the benefits of Direct Compensation for Property Damage coverage?
DCPD is a more streamlined process that provides the advantage of dealing with your own insurer to process your claim resulting in better service and receiving appropriate compensation quicker.
Do I need to do anything to ensure I have Direct Compensation for Property Damage coverage?
No. These changes will take effect January 1, 2022, regardless of your insurance renewal date and will be reflected in your new policy documents when they are sent at renewal time.
Will rates change under DCPD?
Direct Compensation for Property Damage coverage is designed to align insurance premiums better with the costs associated with repairs for a damaged vehicle. Based on vehicle type, some customers may experience an increase (more expensive vehicles) or decrease (less expensive vehicles) in their rate or premium.
- 15% will see no change in premium
- 42% will see a reduction in premium
- 43% will see an increase in premium
To ensure you are ready for Alberta’s automobile insurance changes call CMB at 780.424.2727, click here to get a quote, or download the DCPD Insurance FAQ sheet.
