What Is OPCF 43 Waiver of Depreciation?
OPCF 43, officially called Removing Depreciation Deduction, is an Ontario auto insurance endorsement that may protect the value of a new vehicle by removing the insurer’s right to deduct depreciation when settling a covered loss or damage claim.
This page is educational only. OPCF 43 eligibility depends on your insurer, vehicle status, kilometre reading, bill of sale, delivery date, policy timing, existing coverage, and underwriting approval.
What OPCF 43 is used for
OPCF 43 is designed to remove depreciation from the settlement calculation for an eligible new vehicle when the loss or damage is caused by a peril for which you are insured.
It protects vehicle value
Without OPCF 43, a total loss settlement may be based on the vehicle’s depreciated value at the time of the loss. OPCF 43 may help preserve the original new-vehicle value calculation, subject to the form.
It applies to covered losses
OPCF 43 does not create coverage for every loss. The damage must be caused by a peril for which the vehicle is insured, such as eligible collision, comprehensive, all perils, or other applicable coverage.
It is usually for newer vehicles
This endorsement is typically reviewed when a customer purchases or leases a brand-new vehicle, because depreciation is usually greatest early in the life of the vehicle.
The official FSRA form calls this endorsement “Removing Depreciation Deduction.” Customers often call it waiver of depreciation, depreciation waiver, replacement value, or OPCF 43.
How OPCF 43 may affect a claim settlement
OPCF 43 does not mean the insurer pays any amount you want. The endorsement has a specific settlement formula.
Actual purchase price
The form may consider the actual purchase price of the automobile and its equipment, including applicable taxes.
Original MSRP
The form may consider the manufacturer’s suggested list price of the automobile and its equipment on the original date of purchase.
Replacement cost
The form may consider the cost of replacing the automobile with a new automobile of the same make and model, similarly equipped.
OPCF 43 generally pays based on the lowest of the amounts allowed by the endorsement, not simply the highest number available.
Why OPCF 43 can matter in the first few years
New vehicles can lose a meaningful amount of value in the first year. If a new vehicle is stolen or written off early, depreciation can create a gap between what you paid and what the vehicle is worth.
New cars depreciate quickly
A vehicle may lose value quickly after purchase, especially during the first year. OPCF 43 is designed for that period when depreciation risk is often highest.
Total loss risk
This endorsement is especially important to understand if your vehicle is stolen, burned, heavily damaged, or written off after a covered loss.
Loan or lease balance
If you financed or leased the vehicle, depreciation may create stress if the claim payout is less than expected. OPCF 43 and GAP-style products should be compared carefully.
Reliable broker recommendation: review OPCF 43 at the time you buy or lease the vehicle. Waiting can make the endorsement unavailable.
OPCF 43 eligibility: timing matters
OPCF 43 is usually not something you can add whenever you feel like it. Eligibility is often tied to the vehicle being new, recently purchased, and insured correctly from the start.
Original purchaser
For OPCF 43, the official form requires the insured to be the original purchaser and the automobile to be new at the time of delivery.
Add it at policy inception
We recommend asking for OPCF 43 when the new vehicle is first added to your policy. Many insurers will not allow it to be added later if the initial opportunity is missed.
Kilometres can matter
Many insurers use a low-kilometre rule at the time of purchase or delivery. A common underwriting threshold may be around 5,000 km, but the exact rule depends on the insurer.
If you are buying a new car, ask about OPCF 43 before the policy starts. Once the vehicle is already insured without it, you may lose the opportunity to add it.
New, used, demo, and leased vehicles
The bill of sale and how the vehicle is described can make a major difference. Ask before assuming the vehicle qualifies.
Brand-new vehicle
This is the cleanest OPCF 43 scenario. The vehicle is new at delivery, you are the original purchaser, and the endorsement is requested when the vehicle is first insured.
Demo vehicle
Demo vehicles can be tricky. Some insurers may consider an exception with underwriter approval if the vehicle is treated as new/demo, has low kilometres, and the documents support eligibility.
Used vehicle
If the bill of sale lists the vehicle as used, OPCF 43 is generally not available or appropriate. The endorsement is meant for vehicles that are new at delivery.
Leased vehicle
Leased vehicles may use a related endorsement, often OPCF 43A, depending on the situation. The lessee must meet the eligibility requirements and the policy must be set up correctly.
If you are unsure whether the vehicle is new, demo, leased, or used for insurance purposes, send the bill of sale to your broker before binding coverage.
How long does OPCF 43 last?
OPCF 43 does not last forever. The endorsement applies only for the time period shown by the policy or insurer.
Insurer timelines vary
Depending on the insurer, OPCF 43 may be offered for different time periods. Common options may range from around 24 months up to 5 years.
Check the expiry window
Ask how many months the endorsement applies from the date the vehicle was delivered to you. This should be confirmed on the policy, certificate, or insurer documentation.
Do not assume renewal means extension
The endorsement may appear on a renewal, but it still has a maximum time window. Ask when it expires and whether it can continue.
Talk to a broker. The available OPCF 43 term depends on the insurer, vehicle, eligibility, and underwriting rules.
Can you keep OPCF 43 if you move insurers?
Sometimes, yes. If you already have waiver of depreciation on your current policy, a new insurer may allow it to continue if you can prove continuous coverage and still meet their rules.
Proof is important
You may need to provide your current policy, current renewal, or certificate showing that waiver of depreciation is already in force.
No coverage gap
Insurers may be more willing to continue the endorsement if there has been no gap and the vehicle still falls within the allowable term.
Underwriting approval
A new insurer does not have to accept the endorsement just because the prior insurer did. The new insurer’s rules and underwriting approval still matter.
Broker tip: if you are shopping insurance on a newer vehicle, tell the broker right away whether your current policy includes OPCF 43 or waiver of depreciation.
OPCF 43 vs. dealership GAP insurance
OPCF 43 and dealership GAP-style protection are often confused, but they are not the same product. They may solve different problems.
OPCF 43 from your insurer
OPCF 43 removes the insurer’s right to deduct depreciation from the value of the eligible vehicle when settling a covered vehicle loss. It is part of your auto insurance policy.
Dealership GAP or debt waiver
GAP or debt-waiver products are usually designed to address a loan or lease shortfall if your vehicle is written off and the insurance payout is less than what you owe.
Loan protection is different again
Some dealership or finance-office packages may include loan, payment, disability, life, or job-loss protection. OPCF 43 does not make your car payments if you lose your job.
OPCF 43 is usually cheaper than dealership protection in many quote scenarios, but it usually does not cover the same scope. Compare the wording, not just the price.
Why many customers ask for OPCF 43 through their insurer
We often recommend quoting OPCF 43 through the auto insurer first because it may be affordable, easy to include with the policy, and directly connected to the vehicle claim process.
Often lower cost
OPCF 43 is often much less expensive than dealership add-on products, though pricing depends on the insurer, vehicle, and policy.
Attached to the auto policy
Because OPCF 43 is part of the auto insurance policy, it is reviewed as part of the covered vehicle claim.
Clearer insurance conversation
A broker can help explain how OPCF 43 works alongside collision, comprehensive, all perils, deductibles, lienholders, leases, and claim settlements.
This does not mean dealership GAP or loan protection is always bad. It means the products are different, and you should compare them carefully before paying for both or relying on one.
What OPCF 43 does not cover
OPCF 43 is valuable, but it is not a full financial protection package and it is not the same as GAP, loan protection, or warranty coverage.
No job-loss protection
OPCF 43 does not pay your car loan, lease, or monthly payments if you lose your job. Job-loss protection would be a different product.
No mechanical warranty
OPCF 43 does not cover breakdown, wear and tear, mechanical issues, rust, maintenance, or warranty-type repairs.
No automatic used-car coverage
If the vehicle is used or listed as used on the bill of sale, OPCF 43 is generally not available because the endorsement is intended for new vehicles.
OPCF 43 answers one main question: will the insurer deduct depreciation from an eligible new vehicle when settling a covered loss?
Questions to ask before buying a new vehicle
Ask these questions before the vehicle is delivered, before the policy is bound, and before you agree to dealership finance-office products.
Can I add OPCF 43 at inception?
Ask before the policy starts. If the vehicle is already insured without OPCF 43, some insurers may not allow it to be added later.
Is the vehicle new, demo, or used?
The bill of sale matters. If the vehicle is listed as used, treat OPCF 43 as generally unavailable unless an insurer confirms an exception in writing.
How many kilometres are on the vehicle?
Many insurers have low-kilometre eligibility rules for new or demo vehicles. Ask before delivery if the vehicle has kilometres on it.
How long will OPCF 43 last?
Ask whether the endorsement is available for 24 months, 36 months, 48 months, 60 months, or another insurer-specific period.
Do I still need GAP or loan protection?
OPCF 43 and dealership GAP or loan protection are different. Ask what each product pays, what it excludes, whether it covers job loss, and whether you would be paying for overlapping protection.
Do not wait until after delivery to ask. Once the vehicle is insured and driven, eligibility may become harder or impossible to obtain.
Examples where OPCF 43 may matter
New car stolen after purchase
A customer buys a new vehicle and it is stolen during the endorsement period. If the loss is covered and OPCF 43 applies, the settlement may avoid a depreciation deduction.
New car written off in the first year
A vehicle can lose value quickly in the first year. OPCF 43 may help protect against the difference between new-vehicle value and depreciated value.
Demo vehicle with underwriting approval
A low-kilometre demo vehicle may require insurer review. Sometimes an exception may be possible, but it should be confirmed before the policy is bound.
Reliable broker recommendation
If you are buying or leasing a new vehicle, ask about OPCF 43 immediately. The best time to add it is when the vehicle is first insured.
Ask before delivery
Send the bill of sale to your broker and ask whether the vehicle qualifies before you take delivery or bind the policy.
Compare against GAP
Do not assume dealership GAP and OPCF 43 are the same. Compare the price, wording, limits, exclusions, and whether loan or job-loss benefits are included.
Do not delay
If you wait until after the policy starts, you may lose the opportunity to add the endorsement.
For most eligible new vehicles, we recommend quoting OPCF 43 at inception of the policy. You can always decline it after reviewing the cost, but you may not be able to add it later.
Continue learning about Ontario auto insurance
Collision vs. Comprehensive
Learn how physical damage coverage works and why insured perils matter before adding endorsements like OPCF 43.
OPCF 20: Loss of Use
Learn how transportation replacement coverage may help after a covered claim while your vehicle is being repaired or replaced.
OPCF 27: Rental Car Coverage
Learn how OPCF 27 may apply when you rent or borrow an eligible vehicle you do not own.
OPCF 43 FAQs
What is OPCF 43?
OPCF 43 is an Ontario auto insurance endorsement officially called Removing Depreciation Deduction. It removes the insurer’s right to deduct depreciation from the value of an eligible automobile when settling a covered loss or damage claim.
Is OPCF 43 the same as GAP insurance?
No. OPCF 43 is an auto insurance endorsement that deals with depreciation in a covered vehicle claim. GAP or debt-waiver protection from a dealership or lender is usually designed to address a loan or lease shortfall. Some finance-office products may also include loan or job-loss protection, which OPCF 43 does not.
Can I add OPCF 43 after the policy starts?
Often no. Many insurers require OPCF 43 to be added when the eligible new vehicle is first insured. Ask before the policy is bound because waiting may make the endorsement unavailable.
Can I get OPCF 43 on a used car?
Generally no. The official OPCF 43 form is intended for an original purchaser and a vehicle that is new at the time of delivery. If the bill of sale lists the vehicle as used, assume OPCF 43 is unavailable unless an insurer confirms otherwise in writing.
Can I get OPCF 43 on a demo vehicle?
Sometimes a low-kilometre demo vehicle may be reviewed by underwriting, but this is not guaranteed. Approval depends on the insurer, bill of sale, kilometre reading, vehicle status, and underwriting rules.
How many kilometres can the vehicle have?
Insurer rules vary. Many insurers use a low-kilometre threshold, often around 5,000 km, but you should confirm the exact rule before buying or insuring the vehicle.
How long does OPCF 43 last?
The term varies by insurer and policy. Depending on the insurer, it may be available for periods such as 24 months up to 5 years. Ask your broker what term is available and when it expires.
Can I keep OPCF 43 if I switch insurers?
Sometimes. A new insurer may allow the endorsement to continue if you can prove it is already on your current policy or renewal and the vehicle still meets that insurer’s rules. Approval is not automatic.
Does OPCF 43 cover job loss?
No. OPCF 43 does not cover job loss, disability, life insurance, loan payments, or missed car payments. Those would be separate loan, credit, or payment protection products.
Does OPCF 43 cover tires, batteries, or prior unrepaired damage?
The official form excludes tires, batteries, and betterment resulting from repairing or replacing parts for prior unrepaired damage.
