What is DCPD?

About 7 years ago, Nova Scotia introduced DCPD insurance. This stands for Direct Compensation for Property Damage. It means you can recover damages caused by a collision, from your own insurance company.

DCPD is a mandatory part of your insurance package. It includes coverage for damage to your vehicle, its contents, and the loss of use due to an accident, if you are not at fault in an accident in Nova Scotia.

Some people call it no fault insurance. It doesn’t mean no one is at fault; it means your company covers you regardless of who was at fault. If you are at fault, and you do not carry collision, there would be no coverage for damage to your own vehicle though.

Before no fault insurance, settling a claim was a much more complicated process. Now your claim can be settled much faster. You also may have had to deal with a claims adjuster from an unfamiliar company. Let’s face it, the service might be poor and slow with that company, even if you were with a preferred company! Now, with DCPD, when you choose your insurance company you are going to deal with them regardless of who is at fault.

A part of your insurance premium is for DCPD. The rate is based on your car. If you have a higher end, hard to repair, or newer vehicle, you may pay a bit more for this coverage. Your car would cost more to fix, so it makes sense.

Insurance is always evolving. Other provinces have been using DCPD for many years, it’s still new here.

Still have questions?? That is what an insurance broker is here for! Call your broker today, we’d love to discuss this with you.