What does DCPD stand for?

DCPD stands for Direct Compensation - Property Damage, which is a key component of Ontario's automobile insurance system. Under this system, an insured driver can claim compensation directly from their own insurer for property damage sustained in an accident, regardless of who is at fault. This process simplifies the claims experience and reduces the need for legal disputes, as drivers do not have to pursue claims from the other party’s insurance company.

This approach benefits drivers by ensuring a more efficient and streamlined process for dealing with property damage claims. It also encourages accountability among drivers to maintain proper insurance without the fear of dealing directly with the other party's insurer in many circumstances.

Understanding DCPD is crucial for anyone preparing for the OTL Ontario Automobile Insurance License, as it embodies the principles of fairness and efficiency within the province's auto insurance framework. The other options have terms that do not accurately represent the official terminology used in Ontario insurance legislation.