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Direct Compensation Property Damage: What You Need to Know


On January 1, 2022, the UCP government under Premier Jason Kenney and Finance Minister Travis Toews obediently checked off yet another item on the powerful auto insurance lobby’s wish list by adopting a “Direct Compensation Property Damage” (DCPD) system for the province of Alberta. What does this mean?

Prior to this year, if you got in a car accident that was the other driver’s fault, the other driver’s insurance company would cover the cost of your vehicle damage. If you were to blame for the crash, your own insurer would pick up the tab for your vehicle damage (less your deductible) by covering the repair costs or paying you out if your vehicle was a writeoff, if and only if you carried collision coverage (which is optional). Now, for motor vehicle accidents occurring on or after the beginning of this year, you are required to carry this new DCPD insurance coverage. If you get in a car crash caused by the other driver, instead of that reckless motorist’s insurer footing the bill for your vehicle damage, your own insurer will pay the cost under the mandatory DCPD section of your policy. If the collision is your fault, then same as before 2022, your insurer will only chip in towards your automobile damage costs if you bought the optional collision coverage. As a result of this change, accident-prone reckless motorists who have a tendency to smash their beaters into automobiles owned and operated by good drivers may actually see their rates go down, while careful drivers who own nice rides (like a sweet Jag, for example) will probably see their premiums jump. A tip of the MAGA cap to Premier Kenney for once again siding with bad drivers over good ones. Honk honk! Now, off to Hawaii ‘til spring and then back in time for Mr. Kenney’s UCP leadership review in Red Deer on April 9. Aloha! #HaveVaxxportWillTravel

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