Direct Compensation For Property Damage (DCPD) Insurance

On January 1, 2022, Alberta will adopt a Direct Compensation for Property Damage (DCPD) system – which will improve the way Alberta’s insurers support their customers following collisions. 

Under DCPD, your own insurance company pays for repairs to your vehicle when you are not at-fault for a collision, not someone else’s. It’s a fairer and more customer-focused approach to insurance claims and vehicle repairs. 

Do I need to do anything to prepare for DCPD?

Vehicle owners won’t have to do anything when DCPD begins in 2022. DCPD is simply a change in the way vehicle damage claims are treated in Alberta following collisions. DCPD does not change your automobile coverage, only who pays for the damage.

Will this impact my premium?

For the majority of drivers, DCPD will either reduce their premiums or they will see no change at all. 

DCPD better aligns insurance premiums with the costs associated with repairs for a vehicle. 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.

Under DCPD, 42% of drivers will see a reduction in their premiums and roughly 15% will see no change. An estimated 34% of drivers will see an increase in their premiums between 0% and 5%.

How DCPD will impact Permiums

Why is Alberta moving to DCPD?

DCPD is a fairer and more efficient approach to insurance claims and vehicle repairs, and is already used in most provinces in Canada. Under DCPD, damages to your vehicle will be repaired faster and without the delays and complications that can arise when dealing with another driver's insurer.

DCPD reduces costs associated with subrogation – the process insurers use to determine who pays for a claim following a collision. Along with other reforms, it will help stabilize premiums for the long term.

Consumers who have questions about DCPD and what it means for them should contact their insurance representative or IBC’s Consumer Information Line at 1-844-2ask-IBC or email AskIBCWest@ibc.ca

Top 10 things to know about Direct Compensation for Property Damage (DCPD):

  1. It’s a fairer system for everyone. Owners of less expensive cars that cost less to repair will pay less for their insurance.
  2. Vehicle owners won’t have to do anything ahead of time. When they have a not at-fault collision, they will arrange vehicle repairs with their own insurance company, not someone else’s.
  3. Under DCPD, 42% of drivers will see a reduction in their premiums and roughly 15% will see no change. An estimated 34% of drivers will see an increase in their premiums between 0% and 5%.
  4. The DCPD system is already used in almost every province in Canada.
  5. DCPD does not impact a consumer’s right to sue for other damages, like injuries, under the existing system.
  6. If you are not at fault for a collision, DCPD covers your vehicle damages, loss of use and any contents that were damaged. You still need to purchase collision coverage to have repairs completed when you are at-fault.
  7. Vehicle owners choose their insurance provider, which means you decide which company handles the vehicle repair process.
  8. DCPD Regulation provides transparency when determining fault for a collision.
  9. Ensures a more efficient process for vehicle repairs, since you don't have to wait for someone else's insurance company to start the process.
  10. DCPD is part of recent auto insurance reforms to help improve long term sustainability of auto insurance premiums in the province.

Additional Resources


Automobile Insurance Rate Board (AIRB)