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Alberta Auto Reform

The province of Alberta has enacted legislative and regulatory changes that introduce Direct Compensation for Property Damage (DCPD). On January 1, 2022, all automobile insurance policies in Alberta will automatically have new DCPD coverage added.  

Direct Compensation for Property Damage Insurance - Frequently Asked Questions

What is DCPD?

DCPD provides an easier, customer-focused approach to automobile insurance claims where you are not at-fault for the damage to your vehicle during an accident. As of January 1, 2022, you will work with your own insurer, not someone else’s, on all claims for vehicle repairs. This upcoming change means that we at Pembridge will have the opportunity to take even better care of our customers if they are involved in an accident. 

DCPD does not change your automobile coverage, only who pays for the damage to your vehicle during an accident.

Is DCPD coverage mandatory?

Yes. As of January 1, 2022, DCPD is a mandatory coverage that will automatically be added to all automobile insurance policies in Alberta.

Do I need to do anything?

Our customers will not have to take any additional steps to have DCPD coverage added to their automobile insurance policy. DCPD coverage will automatically be added to your automobile insurance policy as of January 1, 2022, and the changes will be formally reflected on your policy documents. For existing customers, the changes will be formally reflected on your policy documents sent to you when your policy renews in 2022.  

Will DCPD apply to an accident in another province?

Other jurisdictions across Canada have enacted similar DCPD legislation for vehicle damage coverage. If you are involved in an accident in another province, our customers should contact us. Your trusted claims advisor will provide you with further information and direction.

What if I’m at-fault in an accident?

DCPD coverage only applies to not at-fault accidents. After an accident, regardless of fault, you will only deal with your own insurance company during the claims process for vehicle damages. Collision coverage will remain optional to purchase. You still need to purchase collision coverage if you would like to be covered when you are at-fault for the damage to your vehicle during an accident.

If you are involved in an accident where you are considered partially at-fault, then the vehicle damage coverage will be split between DCPD coverage and your collision coverage, if you purchased collision coverage on your policy.  

Are all not-at-fault accidents covered under DCPD?

No. While DCPD is meant to provide coverage in most instances where you are not at-fault in an accident, DCPD does not apply to all not-at-fault situations. For example, hit-and-runs are not covered under DCPD.  Instead, an incident like this would be covered through the optional collision and comprehensive coverages on your policy. If you are involved in an accident, you can contact your trusted claims advisor for further information and direction.

Will I still need Third Party Liability coverage on my vehicle?

Yes, Third-Party Liability coverage continues to be mandatory coverage required on your automobile insurance policy. Third Party Liability coverage will continue to provide coverage for: 

  1. Bodily injury
  2. Property damage – Tort (damage to other property, such as a fence or a traffic sign).

How will "fault" be determined?

At-fault motor vehicle accidents will be determined using the DCPD Fault Determination Rules. For unique or complex situations that do not fall under these accident scenarios, the ordinary rules of the road will apply, as they have in the past.

Under DCPD, who will pay rental costs if I can’t use my vehicle?

DCPD coverage will provide coverage for your rental costs, known as ‘Loss of Use’ coverage, in situations where you are not at-fault for the accident. You can also purchase additional Loss of Use coverage that will cover your rental costs in situations where you are at-fault for an accident. Speak to your Broker to see if this is right for you.

Is there a deductible with DCPD coverage?

The standard DCPD coverage is offered without a deductible. Pembridge also offers our customers deductible options to help lower their premiums, should they choose. To find out more and to discuss which options may best fit your needs, please contact your Broker.

How will DCPD affect my rates?

DCPD is meant to better align insurance premiums with the costs associated with repairs for a vehicle when involved in a motor vehicle accident. This means that, typically, owners of less expensive vehicles that cost less to repair will pay less for their insurance. Similarly, owners of more expensive vehicles that cost more to repair may pay more. It’s a fairer system for everyone. Please contact your Broker to find out more about your specific situation.

Does DCPD make it easier for me to report a claim?

With DCPD, you only need to work with your own insurance company to help with repairs to your vehicle or contents damage, instead of the insurance company of the person at-fault for the accident. Our experienced team of claims professionals are committed to providing you with fast, efficient, quality service. We’re always here to help answer any questions that you may have throughout the claims process. Learn more about our claims service and how to make a claim here.

Are there other changes reform changes I should be aware of in Alberta?

Yes, the province of Alberta introduced other changes to the automobile insurance system prior to January 1, 2022. Please visit  for more details.

How can I get more information about these changes to automobile insurance in Alberta?

If you have more questions about these changes, please contact your Broker. You can also check out AIRB : Automobile Insurance Rate Board - For Drivers - Direct Compensation for Property Damage ( for more information.