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What Is Direct Compensation for Property Damage (DCPD)?

Updated: Nov 7, 2023


In 2022, the Alberta Government introduced new regulations that mandated Direct Compensation for Property Damage coverage for all automobile policies. But what exactly is DCPD? Continue reading to learn more about this mandatory insurance coverage in Alberta.

Direct Compensation for Property Damage coverage applies to the portion of a collision that is not your fault. It covers the damage your vehicle only if you are found to not be at fault. If you are at fault, your collision coverage will pay for the damage, if you have purchased it.

What Are The Benefits Of DCPD?

DCPD is an easier, more streamlined way to file insurance claims and receive payment. It allows you to deal with your own insurance company instead of the at-fault insurance company, ensuring that you receive the customer care and efficiency that you deserve.

Are All Not-at-fault Accidents Covered Under DCPD?

There are certain situations where DCPD will not cover an at-fault accident. For example, if you were involved in a hit-and-run, DCPD would not cover the costs of the damage. Instead, the optional collision or comprehensive insurance would cover this.

Does DCPD Cover The Cost Of A Rental Vehicle?

Yes, if you require the use of a rental vehicle while waiting for your vehicle to be repaired, your DCPD coverage will provide you with a rental vehicle. This is also known as “loss of use” coverage.

Does DCPD Effect Insurance Rates?

This depends on the type of vehicle that you own. Generally, less expensive vehicles have lower premiums, and more expensive vehicles will have higher premiums.

If you have any more questions about DCPD, or any other type of insurance, please feel free to reach out to one of our experienced brokers.


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