What is the coverage limit in OPCF 19 for loss or damage?

The coverage limit in the Ontario Policy Change Form (OPCF) 19, which is an additional coverage that can be added to a standard automobile insurance policy, addresses loss or damage to an insured automobile. The correct response emphasizes that the coverage is based on actual cash value (ACV), which means that in the event of a claim, the insurer will pay out the amount the vehicle is worth at that time, considering depreciation.

Actual cash value takes into account the vehicle's age, wear and tear, and other factors that may affect its market value at the time of the loss. This differs significantly from replacement cost, where the insurer would pay for the cost to replace the vehicle with a new one of similar kind and quality without considering depreciation. The other options, such as current market value or full value of the vehicle, indicate varying interpretations of value that do not align with the definition of ACV as set forth in policy terms.

Thus, the choice that correctly identifies the coverage limit under OPCF 19 recognizes the framework of calculating loss or damage based on the actual cash value principle.