OTL Ontario Automobile Insurance License Practice Test 2026 – The Comprehensive All-in-One Guide for Exam Success!

DCPD stands for Direct Compensation - Property Damage, which is a component of automobile insurance in Ontario. This coverage applies specifically in situations where both parties involved in an accident have DCPD coverage. The essence of DCPD is that it facilitates the claim process when a policyholder's vehicle is damaged in a collision with another vehicle, as long as both parties are insured under a DCPD policy.

In situations where both drivers have this type of coverage, each driver can turn to their own insurance company for compensation without needing to establish fault in the accident. This simplifies the claims process and reduces the potential for disputes between insurers. It's a fundamental aspect of Ontario's automobile insurance system aimed at providing swift resolution and minimizing conflict.

Other choices suggest scenarios that don't align with the DCPD framework. For instance, the notion that DCPD applies when no other vehicles are involved conflicts with the coverage's fundamental requirement for a collision between insured vehicles. Likewise, while disputes over fault are common in accidents, they do not affect the applicability of DCPD as long as both parties possess coverage. The focus is on ensuring both parties involved are insured under DCPD rather than negating claims due to fault discussions or the involvement of other vehicles.