One key change under DCPD is you will pay a premium based on what vehicle you drive. Your insurer pays to repair your vehicle when you are not at fault. This is the main difference from the previous third party liability property damage coverage, where your insurer was responsible for paying to repair someone else’s vehicle if you were at fault. There was no way for your insurer to know what other vehicle may be involved in an accident, so your third party liability property damage premium was based on an average cost of repairs for the vehicle you may have had an accident with.
The certainty of the vehicle covered by DCPD allows for more precise pricing. To accurately price for the costs to repair or replace your vehicle, your insurer will use vehicle rate groups. Vehicle rate groups classify vehicles based on the price of repairs and the likelihood of being involved in an accident. Generally, the lower the vehicle rate group, the lower the DCPD premium.