On January 1, 2022 Alberta will adopt a Direct Compensation for Property Damage system for all auto collisions. Under DCPD, your own insurance provider will pay for repairs to your vehicle when you are not at-fault for a collision, instead of the person who’s at fault. This new system will eliminate the need for policy holders and insurance providers to work with the third party’s insurers, resulting in faster claim processing and vehicle repair times. DCPD does not change your automobile coverage, only who pays for damage claims.
What is changing?
If you are involved in a collision, your insurance provider will automatically pay for vehicle repairs under the Direct Compensation for Property Damage system.
DCPD will cover the costs for the percentage of the accident in which you are not at fault, including repairs, loss of use of the vehicle, and the contents in the vehicle that were damaged or lost.
What does this mean for me?
Previously, when involved in an accident, your insurance provider would need to recoup the costs from the at-fault party’s insurer before being able to release your vehicle to be repaired and returned to you. This created longer wait times and added additional administration costs.
Under the new DCPD system, your insurer will automatically be able to expedite claims, resulting in faster repair times.
What does the percentage of Not at fault mean?
In any collision, the percentage of fault is determined by who or what caused the accident. In some cases, a driver is completely at fault or completely not at fault.
In a scenario of a driver being 100% not at fault, the DCPD system will cover the entire auto damage claim.
In a scenario where a driver is deemed 50% at fault, the DCPD system will cover 50% of the claim in which the driver was not at fault. It is recommended that insureds carry a collision policy to cover the remaining 50% of the costs for which they were at fault.
In a scenario where a driver is 100% at fault, carrying a collision policy will cover any auto damages.
The intent of the DCPD system is to make it easier for you, as a vehicle owner, to navigate the claims process after a collision. If you have any additional questions or concerns, please contact your Westland insurance broker.