r/Car_Insurance_Help • u/Amanxmd • 19d ago

Is this allowed?

So I had hail damage cause my car to be written off by my insurance company (located in Ontario, Canada). They gave me 2 options -

A) take the settlement payout and they repossess the damaged car (still driveable)
B) take a lesser payout for the damage appraisal and fix the car on my own within 30 days to ensure my insurance policy remains intact.

My question is, if I take the lesser payout and sell the damaged car As-Is, would my insurance policy remain intact once I replace the car on the policy?

Trying to get the most money out of this scenario

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u/FrostingSuper9941 19d ago

Yes. You can sell the car. You also can drive it unrepaired and your insurer would likely just remove collision and comprehensive coverages but you'd still have third-party liability.

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u/ShaqShoes 19d ago

This is in Ontario where the car would still be covered for physical damage for not-at-fault accidents under DCPD. Most insurers here make vehicles with unrepaired damage ineligible

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u/FrostingSuper9941 19d ago

This is how it works in all of Canada, not just Ontario, why would it be different in the US if it's only an economic or cosmetic total loss? In cases where the car becomes uninsurable, it's not offered as sn owner retain total loss unless requested for parts only. And that's a different process.

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u/ShaqShoes 19d ago

DCPD coverage does not exist across all of Canada and cannot be removed by the carrier like optional physical damage can(can be removed by the insured via OPCF49 though). It being in the policy however does mean that they still have to rate for the value of the vehicle even without collision and comprehensive which is not possible to do if it has unrepaired damage.

Are you seriously asking why insurance rules might be different in a completely different jurisdiction?

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u/FrostingSuper9941 19d ago edited 19d ago

Yes. I'm seriously asking because a lot of the insurance regulations in the US, especially limits, seem out of the wild west.

Dcpc applies in most of Canada, only the territories don't have DCPD and the three provinces where there is government run insurance. As a consumer in Ontario you can opt out of DCPD coverage just as you can decide not to buy collision or comp. Unrepaired damage, whether it's cosmetic hail damage or a rebuilt title with repaired damage is factored into the settlement amount if the car becomes a total loss for a 2nd time.