Legal Liability for Damage to Non-Owned Autos (OPCF 27)

What is the OPCF 27? 

All vehicle owners are required to have a standard automobile insurance policy. This makes up the base of the insurance. This includes coverage for third-party liability, accident benefits, direct compensation and uninsured automobile. The next factor is the optional physical damage coverage for your automobile. The options are All Perils, Collision, Comprehensive or Specified Perils. You may modify your standard policy or optional physical damage coverage with endorsement forms. In Ontario, endorsement forms are called Ontario Policy Change Forms (OPCF). Each OPCF has a corresponding number to represent the purpose of the change form. 

The form is called Legal Liability for Damage to Non-Owned Automobiles Endorsement. The purpose of the change form is to use your optional physical damage coverage on a vehicle you do not own. Typically, most people use the OPCF 27 when renting a car without paying the daily insurance rate through the rental company, but it could be used on non-rental vehicles borrowed and not owned. 

For more details, download the form here. Continue reading to understand scenarios to consider using the OPCF 27. 

Why consider purchasing daily insurance from the rental car company? 

There are benefits and drawbacks when buying daily insurance from a car rental company. The cost of daily insurance is high, and the coverage purchased can seem unclear without reading the fine print. For example, some daily rental car insurance agreements do not cover damage to the windshield. Before making any insurance purchase from the rental car company, determine if there is clear documentation on how the coverage will respond. Review the limits, exclusions and the deductibles for which you are responsible. 

Some car rental companies offer transparent, worry-free insurance coverage. In most cases, if you were involved in an accident, the rental car company will pick up the damaged vehicle and provide a replacement rental car. Depending on the severity of the damages, you could be back on the road within minutes. 

When should I consider using the OPCF 27? 

You have the option to use the OPCF 27 instead of paying daily insurance on the car rental. However, verify that this endorsement is on your policy. Using the OPCF 27 will save you some money, but in the event of loss or damage, you will need to make a claim against your insurance policy. 

Items to consider when using OPCF27 when renting a car:  

  • Coverage only applies to the drivers listed on your policy. 
  • Coverage limit for damage to the non-owned vehicle might not be adequate. Sometimes, the limit is $50,000. There is often an option to purchase higher limits. 
  • The coverage applies only to an automobile of 4500 kilograms or less (gross vehicle weight). 
  • Coverage is limited to Canada and the United States. 
  • For periods of not more than 30 consecutive days. 

Why consider using Rental Car Insurance on your Credit Card? 

Often, this is coverage built into high-end credit cards. If the coverage is comprehensive enough for your needs, it’s worth considering. However, check with your credit card company to see what type of rental car insurance coverage you have. Ask for the fine print to make sure you understand the deductible, limits and exclusions. There is a possibility that the rental car insurance on your credit card might have limitations. Make sure to understand the details fully. 

Temporary Substitute Automobile 

If you meet the insurance contract criteria for a Temporary Substitute Automobile, you can use your standard policy and optional physical damage coverage to another vehicle you do not own. This is different than the conditions of the OPCF 27. Under a Temporary Substitute Automobile, your insured vehicle cannot be in use due to it being out of service. 

To be specific on the criteria, here is the actual Ontario Automobile Policy (OAP1) contract wording under Section 2.2.2, Temporary Substitute Automobile: 

 A temporary substitute automobile is an automobile that is temporarily used while a described automobile is out of service. The described automobile must not be in use by anyone insured by this policy because of its breakdown, repair, servicing, theft, sale or destruction. Coverage for a temporary substitute automobile is provided under the automobile policy of the owner of the temporary substitute automobile. However, this policy may also provide coverage. The following coverages apply to a temporary substitute automobile if a premium is shown for them on the Certificate of Automobile Insurance for the described automobile that is temporarily out of service: 

  • Liability, 
  • Accident Benefits, 
  • Uninsured Automobile, and 
  • Direct Compensation – Property Damage 

If you have purchased optional Loss or Damage Coverages on a described automobile and it is temporarily out of service, there are special conditions about this coverage for temporary substitute automobiles. These conditions are explained in Section 7 – Loss or Damage Coverages of this policy. 

Special Condition: A temporary substitute automobile cannot be owned by you or by anyone living in the same dwelling as you. 

Common examples include involvement in a car accident, and your car cannot be used due to the damages, or when your car is in for service. If your insured car is not in use because it is out of service, your insurance policy will provide coverage for a car you borrow (a car you do not own). In these examples, you do not need to use the OPCF 27 or purchase the insurance from the rental car company. 



This article is intended to bring possible scenarios to your attention and not intended to help you make insurance decisions on your own. Before making any insurance decision, consult with Brown & Brown. Insurance policies are unique to each individual circumstance, and coverage will vary. 

Non-Ontario drivers will have similar policy change forms. For non-Quebec drivers, the endorsement form is SEF 27. In Quebec, it is called QEF 27. Please consult with your insurance broker to help make sure you have adequate insurance coverage.