Which of the following statements about Direct Compensation Property Damage coverage in the OAP 1 is false?

Direct Compensation Property Damage (DCPD) coverage is a unique aspect of automobile insurance in Ontario that allows policyholders to recover costs for damage to their own vehicles and contents without needing to claim against the at-fault party's insurer. The correct statement highlights a limitation in the DCPD coverage regarding subrogation.

The reason that the first statement is identified as false is that under DCPD coverage, an insurer cannot recoup all costs for damages to vehicle contents from the at-fault motorist's insurer. Subrogation typically allows an insurer to pursue recovery of expenses from the party at fault, but in the case of DCPD, the coverage is constructed to limit the need for such claims to enhance the efficiency of settling claims. This means that while damage to the insured's automobile can be recovered based on the fault percentage, damages to the vehicle’s contents do not allow for broad subrogation opportunities.

The other statements provide accurate representations of DCPD coverage. It indeed pays based on the insured’s fault percentage, further stipulates that coverage only applies if the incident occurs with another insured automobile in Ontario, and clarifies that DCPD covers damage to the insured's vehicle contents without regard to driver fault, ensuring a swift