The Book of Brokers: Chapter 1
Florida Fun & Frugal Finances – The Story of the OPCF27
So, a good friend of mine was heading to Florida on a family vacation in a few days. He did the responsible thing and purchased travel Insurance, booked hotels on a bargain website and was looking into rental vehicles to visit Miami, the Florida Keys and the Everglades. Luckily for him, he contacted an insurance broker when he was looking at the cost of the rentals – yes that broker was me. There were some great deals that allowed him to rent a vehicle for $9.99/day with unlimited mileage, however the cost of insurance was breaking his budget.
Ah, introduce the OPCF27, an endorsement designed to extend the following coverage for non-owned vehicles:
– Accident Benefits
– Uninsured Automobile
– Direct Compensation Property Damage
My friends reaction was a mix of excitement and confusion, as it seemed a little too good to be true. I had to assure him that there was a cost associated with the endorsement. It was a nominal cost, however, a premium is associated with adding this endorsement to the policy. There are also some stipulations that restrict who the coverage extends to – also the class of vehicle. At that point he told me that he was hanging up and coming to speak in person – so I quickly found a DVD to distract my children to have the conversation.
A few moments later, my friend showed up with a laptop, spreadsheets of all his vacation calculations and a 15 minute window before he had to rush home to put the kids to sleep. We start the clock. I began to break down the most important facts:
1. Coverage applies to one vehicle only
2. Coverage applies only to a vehicle of 4500 kilograms or less (Gross vehicle weight) or of a specified type
3. It covers the insured, his/her spouse and all other drivers listed in the policy
4. Coverage only applies when the vehicle is being used with the owners/lessee’s consent
There were a few other keys points that we went over in more detail, but by now I could see that he was getting a little bit overwhelmed. One thing that I wanted to make sure that he was clear on was the fact direct damage coverage was not covered under this endorsement. OPCF 27 does however, provide legal liability protection for the driver if the driver is responsible for the damages or assumes responsibility for the damages of the rental vehicle. In other words, any legal fees will be covered under your existing policy.
To close out the conversation, I wanted him to know that the OPCF27 does not apply to:
1. vehicles being used for business or selling, repairing, maintaining, storing or parking automobiles
2. vehicles being used to carry paying passengers or to make commercial deliveries at the time of the loss
3. vehicles owned or frequently used by an insured person or anyone living in the dwelling
14min and 30secs had passed and my friend packed up his bag and headed out the door. Right before leaving he said:
“So let me be clear, I purchase an endorsement called the OPCF 27 at a nominal fee and it extends liability coverage to the vehicle I rent while driving through the Everglades with my family” – I confirm with a fist pump, lock the door and begin the bed time routine with my little monkeys.
The next day we took a look at the wordings and went through all the finite details to ensure that he was fully aware of how the coverage worked. I followed their escapades on Facebook and was terrified when I saw them in the water with those Gators – it’s a good thing that I stay away from Life Insurance.
For more information – contact a licensed Primus Risk Management Inc. Insurance consultant!