Legally Speaking

Direct Compensation Property Damage (“DCPD”)

In the world of car insurance, terms like Direct Compensation Property Damage (DCPD) might sound complex and daunting. However, understanding DCPD is crucial for when you are the owner (insured person) of a vehicle that has been in a car accident.

DCPD is a type of auto insurance coverage that comes with all owner’s policies in New Brunswick. This coverage is designed to streamline the claims process for property (vehicle) damage resulting from a car accident.

Unlike some other jurisdictions, New Brunswick operates under a “no-fault” insurance system for car insurance – meaning that it is not governed by the usual fault rules. Instead, insurers have agreed on several scenarios (now embodied in law) that determine the outcome e.g. rear-end damage, one vehicle passed while turning left, and so on.

Once the rules have been applied, anything you are owed is paid by your insurance company.

Key things to know:

  • Your claim for compensation for property (vehicle) damage goes through your own insurance company.


  • You cannot opt-out of DCPD, but if you disagree with the degree of fault established by the insurer (i.e. how they applied the rules), you can bring suit (sue) your own insurer.


  • Recovering under DCPD precludes an insured from suing the at-fault person and their insurance company.

Correia & Collins represents accident and injury victims. Contact us by phone at 506-648-1700 or online for advice. Your first consultation is free.