Many insurance companies are now requiring that their insureds (customers) who want to remove coverage on their vehicle for an extended period of time, apply an OPCF 16 (Suspension of Coverage) endorsement to their vehicle. It may sound confusing at first glance, but this change is a benefit to you.
What is an OPCF 16 Endorsement?
The OPCF 16 endorsement is a form that will cancel coverage for the use & operation of the vehicle until coverage is reinstated. The form will cancel coverages such as Liability Coverage, Accident Benefits, Uninsured Auto, and Direct Compensation. Keep in mind that these coverages are removed for the use & operation of the vehicle only. If your vehicle is struck by another vehicle while it is parked in your garage or private driveway, you will still have your coverages as purchased as long as you were not using or operating your vehicle at the time of the insurable event.
Once you are ready to put your vehicle back on the road and reinstate coverages, you need to inform your broker/agent and they will apply an OPCF 17 endorsement (Reinstatement of Coverage).
Why Put on the OPCF 16?
Every year thousands of people will put away their vehicles for the winter. Whether you go south for the winter, or store a vehicle for an extended period of time, you will not want to pay for road insurance while the vehicle isn’t being driven. Adding the OPCF 16 endorsement to your vehicle while it is not in use, or if it is stored for an extended period of time will most likely result in a refund of a portion of your premium.
Previously brokers/agents would agree to “comp-only” coverage for anyone who put away their vehicles for an extended period of time. The comp-only approach will remove all coverages except comprehensive coverage (fire, theft, tree falls on it, etc.). After a recent court case (Dominion v. Optimum) insurance companies are moving away from the “comp-only” approach and are starting to make OPCF 16’s mandatory.
Things to Know/What to Watch For
If insurance was easy, no one would need professionals to help them understand the legal wordings from the insurance companies. We specialize in knowing what you are covered for and what you are not covered for. When it comes to the OPCF 16 we have put together a starting list of things to consider when adding this endorsement to your policy.
- Endorsement must be added for a minimum of 45 days to get any possible refund.
- You will have to apply for an OPCF 17 to have coverages reinstated.
- Your vehicle that has the endorsement can’t be used or operated.
- Your vehicle can’t be parked on a roadway.
- If your vehicle gets hit in your private driveway you will still have coverage subject to a deductible, as long as you are not using or operating the vehicle at the time of the incident.
- The OPCF 16 endorsement applies not only to the vehicle that you have attached the endorsement to, but also a newly acquired automobile and a temporary substitute automobile.
- If you have the OPCF 16 endorsement applied to your only vehicle and get into an accident where you are injured in another vehicle (friend), you will still be able to use your accident benefits on your policy since you were not using or operating the vehicle with the endorsement attached to it.
The OPCF 16 endorsement is not as scary as it first reads. Once you understand that the coverages are removed for the use or operation of the described automobile, you will feel more at ease with these coverages being removed from your policy. If at any point you are putting away a vehicle for more than 45 days, contact your broker or agent to discuss adding this endorsement to your policy. You could possibly save a few dollars by adding this endorsement to remove coverages while you are not using your stored vehicle.