Guide to OPCF 5: Permission to Rent or Lease Automobiles and Extending Coverage to the Specified Lessee(s)
What is OPCF 5?
OPCF 5 is an OPCF endorsement added to your personal auto insurance policy if you lease a vehicle. It recognizes the leasing company’s financial interest in the vehicle and allows certain insurance payments to be paid directly to them.
If your vehicle is financed or owned outright, you don’t need to worry about OPCF 5, which only applies to leased vehicles. While it’s technically optional coverage, standard lease agreements in Ontario require lessees to add OPCF 5 to their car insurance.
With OPCF 5 on your policy, your insurance provider will treat the leasing company, not you, as the named insured for any claims covering physical damage to your leased vehicle. Payments for vehicle repairs will go directly to the leasing company.
You can download OPCF 5 from the Financial Services Regulatory Authority of Ontario (FSRA) website.
What does OPCF 5 cover?
OPCF 5 modifies your entire auto insurance policy to clarify when you are eligible for payment and when payments should be sent directly to your leasing company.
Under standard auto insurance policies, the vehicle’s primary owner, its primary operator, and the named insured are all assumed to be the same person. But when you lease a vehicle, the leasing company remains the legal owner of the vehicle, even though you’re the one operating the vehicle and the insurance policy is in your name.
Who is covered under OPCF 5?
OPCF 5 breaks down who “you” refers to in each section
Essentially, the parts of your policy that cover physical damage to your vehicle primarily apply to your leasing company as the technical owner of the vehicle, while policy sections that extend coverage for medical bills apply to you as the primary operator of the vehicle.
Does a deductible apply to OPCF 5?
You’re still responsible for paying your deductible with OPCF 5 on your auto insurance policy. Even though payments for physical damage may go directly to your leasing company, your policy still requires you to pay a deductible when making a car insurance claim.
What does OPCF 5 not cover?
OPCF 5 doesn’t add coverage to your policy; it simply clarifies which party (you or your leasing company) each section of your coverage applies to.
OPCF 5 does not cover rental vehicles. If you’re renting a car other than your own vehicle, you may need additional coverage through OPCF 27 Liability for Damage to Non-Owned Automobile(s).
Who needs OPCF 5?
You need OPCF 5 if you lease a vehicle in Ontario. Your lease agreement will specify your responsibility to include OPCF 5 in your policy. If you’re not sure whether you need OPCF 5, speak with a licensed insurance broker or advisor when getting auto insurance quotes.
FAQ: OPCF 5
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.