Which statement about Direct Compensation Property Damage (DCPD) is true?

Direct Compensation Property Damage (DCPD) is a key aspect of auto insurance coverage that allows drivers to recover damages for vehicle damage without needing to establish fault through a third party's insurer. The correct choice highlights that liability does not need to be determined in the traditional sense of fault for claims made under DCPD. Instead, each party's own insurance covers their damages directly, streamlining the process.

In DCPD, you can file a claim against your own insurance company, which holds responsibility for compensating you directly for your damages. This eliminates the need for lengthy investigations to assign fault between drivers involved in an accident, which contrasts sharply with traditional liability claims.

Understanding this framework is crucial in the context of the other statements, as they suggest processes that are not applicable under DCPD coverage. For instance, recovering from a third-party insurer (the first choice) contradicts how DCPD operates since it relies on direct claims with your own company. Similarly, while deductibles might apply, they vary by policy and may not conform to a standard $1000 amount universally. Lastly, the statement around recovery only if you were responsible also misinterprets DCPD principles, as it provides coverage regardless of fault between the parties involved.