Guide to OPCF 19/19A: Limiting or Extending Physical Damage Payouts
What is OPCF 19?
OPCF 19 (“Limiting the Amount Paid For Loss or Damage Coverages”) is an Ontario Policy Change Form that limits the maximum amount your auto insurance policy will pay out in the event of vehicle damage or theft to the actual cash value (ACV) of your vehicle at the time of loss or a set amount, whichever is less.
OPCF 19 is a last-resort method of reducing insurance costs by limiting the insurer’s financial responsibility for your vehicle to a fraction of the payout that would normally be made. The endorsement only applies to optional physical damage coverage (i.e. collision or upset and comprehensive coverage).
You can ask your insurance broker or advisor for a copy of the OPCF 19 form.
What is OPCF 19A?
OPCF 19A (“Agreed Value of Automobiles”) establishes the agreed value of your insured vehicle as the maximum amount your insurance company agrees to pay to repair your vehicle in the event of damage, theft, or a total loss.
Agreed value is typically based on a professional appraisal of an antique car, collector vehicle, or classic car. Because the value of these cars is not standardized and the appraised value may be significantly higher than the vehicle’s actual cash value, an agreed value of automobile(s) endorsement ensures that you’ll get an appropriate payout in the event of a loss.
You can download OPCF 19A from the Financial Services Regulatory Authority of Ontario (FSRA) website.
What’s the difference between OPCF 19 and OPCF 19A?
OPCF 19 and OPCF 19A have opposite impacts on your auto insurance: OPCF 19 limits your physical damage coverage to the car’s actual cash value, while OPCF 19A extends it to the full agreed value of your vehicle.
Both endorsements can set a fixed maximum payout amount for physical damage coverage.
How does OPCF 19 work?
OPCF 19, the limitation of amount endorsement, sets a fixed maximum for physical damage coverage payouts and guarantees that your insurance company will pay the lesser of that amount or the actual cash value of your vehicle at the time of loss.
Let’s say your vehicle is worth $26,000 at purchase, but you choose to set a payout maximum of $20,000 through OPCF 19 to reduce costs. If your car is totaled the following month and an appraiser determines it’s worth $22,000, you’ll only receive a payout for $20,000.
How does OPCF 19A work?
OPCF 19A allows owners of antique vehicles, classic cars, collector vehicles, and other vehicles whose cash value may be difficult to determine to set an agreed value which the insurer agrees to pay in the event of physical damage or loss. When you sign OPCF 19A, your insurance company agrees to give up their right to payout only the actual cash value of your vehicle.
Let’s say you’re insuring a classic vehicle whose cash value is around $15,000, but a certified professional appraiser estimates its value at $35,000. An OPCF 19A form can set $35,000 as the maximum amount your insurance company will pay to repair the vehicle—well above the $15,000 cash value you’d otherwise be eligible for.
How do OPCF 19 and OPCF 19A impact car insurance premiums?
OPCF 19 will lower your car insurance premiums, while OPCF 19A raises car insurance premiums.
Your auto insurance premium is based on the financial risk it represents to your insurance provider. When you limit coverage using OPCF 19, you reduce your insurance company’s financial exposure and will receive a lower premium. OPCF 19A, on the other hand, increases the financial responsibility your insurer has to pay for auto repairs, and as a result will add to your premium.
You can find the exact dollar amount of your additional premium on your OPCF 19A form.
Who needs OPCF 19?
OPCF 19 is primarily a means of lowering premiums for budget-conscious drivers willing to accept a lower insurance payout in the event of damage or loss. This is not recommended as a savings strategy for most drivers, but it may be a good fit for those driving older vehicles whose value is limited but who still want some physical damage coverage.
Who needs OPCF 19A?
OPCF 19A is primarily used for antique, collector, or classic cars whose value is difficult to determine using traditional pricing models. If your vehicle requires a professional appraisal to determine its value, OPCF 19A can act as an official agreement between you and your insurance company regarding what the vehicle is worth and what you may be owed in the event of a loss.
FAQ: OPCF 19/19A
This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.