2026 Ontario Auto Insurance Reform
Before July 1, 2026
- Statutory Accident Benefits are mandatory
- One-size-fits-all approach
- No choice to opt out of benefits you may already have
- Covered insured, passengers, pedestrians and cyclists
As of July 1, 2026
- Some Statutory Accident Benefits become optional
- Personalized coverage based on your situation
- Avoid paying for coverage you already have
- Limited to the named insured, their spouse, their dependents, and listed drivers on the auto policy
No need to call: Your policy renews with the Accident Benefits coverage you currently have unless you choose to make changes.
Statutory Accident Benefits (SABS)
What they are
Financial support if you're injured in an automobile accident, regardless of who caused it
What they cover
Medical treatment, rehabilitation, and income replacement if you can't work, due to the automobile accident
What to expect
Some coverages remain the same, while others are becoming optional
Understand Your Accident Benefits
Take our 2-minute self-assessment to see which options may matter most based on your needs.
Start 2‑Minute AssessmentAs of July 1, 2026, the reform will immediately impact how your coverages protect you.
Who’s covered
- The named insured
- The spouse of the named insured
- Dependants of the named insured and of the named insured's spouse
- Persons specified in the policy as drivers of the automobile
Exclusions
Some individuals, who may have been covered in the past may no longer be eligible for certain optional Accident Benefits.
- Pedestrians
- Cyclists
- Certain passengers
Who Pays You First
If you are injured in an automobile accident, your auto insurance is typically the first payor for medical and rehabilitation expenses (except certain medication costs.)
This means your auto policy responds to pay you first, helping you save your workplace benefits for other life events
What’s changing
The following auto insurance Accident Benefits will become optional:
Opting out has risks: You may be responsible for unexpected costs if you're injured without coverage
Financial Protection Benefits
Income Replacement
Helps replace employment income you or another covered person may lose because of an automobile accident.
Non-Earner
Provides financial support during recovery if you or another covered person is a student or unemployed and an injury from an automobile accident keeps you from leading a normal life.
Caregiver Benefits
Helps cover caregiving expenses if you or another covered person is injured in an automobile accident and can no longer continue to provide care as the primary caregiver for another member of your household, such as a child or aging parent.
Lost Educational Expenses
Can help cover the costs you have incurred if an automobile accident keeps you or another covered person from completing school or an education program.
Expenses of Visitors
Helps cover reasonable and necessary expenses of visitors, such as a sibling or parents, if you or another covered person is injured in an automobile accident.
Housekeeping & Home Maintenance
Helps cover costs if you or another covered person is unable to perform the housekeeping and home maintenance tasks normally done before the injury from an automobile accident.
Damage to Personal Items
Helps cover reasonable expenses to repair or replace personal items worn by you or another covered person that were damaged due to an automobile accident. (e.g.: clothing, prescription eyewear, hearing aids, etc.)
Death Benefit
Provides financial compensation to the spouse and/or dependents of a covered person in the event of their death due to an automobile accident.
Funeral Benefit
Helps cover some funeral costs if you or another covered person passes away due to an automobile accident.
What’s staying the same
Mandatory benefits
Medical
Covers the reasonable and necessary medical expenses, that are not covered by a plan, for an injury due to an automobile accident.
Rehabilitation
Covers the reasonable and necessary medical and social rehabilitation costs associated with retraining and re-education for re-integrating into their family, society, and labour market for an injury due to an automobile accident.
Attendant Care
Pays for the reasonable and necessary expenses for services provided by an aide or attendant in their home or by a long-term care facility or a chronic care hospital for an injury due to an automobile accident.
Optional benefits
Supplementary Medical, Rehabilitation, and Attendant Care limit increase
Enhances your standard benefits with increased coverage limits for added protection.
Dependant Care
Covers reasonable and necessary additional expenses associated with caring for dependants such as a child, spouse, or aging parent.
Indexation
Helps ensure that certain weekly benefit payments and monetary limits are adjusted annually to reflect changes in the cost of living.
What this means for your renewing or new policy
Existing customer
At renewal, your policy will continue with your current coverage, including any optional Accident Benefits you already have, unless you choose to make changes. We recommend reviewing your coverage carefully to ensure it still meets your needs.New customer
When purchasing a policy, you can choose which optional Accident Benefits to include based on your individual needs.Commercial customer
Commercial policies will renew with the optional Accident Benefits currently in place. These coverages can be reviewed and adjusted to better align with your business’s operations and risk profile.
FAQ
Who can purchase optional benefits under an auto insurance policy?
Why would someone choose to add or remove or decline optional benefits?
Some Ontarians already pay for benefits through their employer or private insurance plans. This reform eliminates a one-size-fits-all approach, and consumers will no longer have to pay for benefits they may already have elsewhere or do not want to buy.
How does removing optional benefits affect my insurance premiums?
Ontario is making changes to auto insurance that puts consumers in the driver’s seat – providing you with more choice and control over your coverage to fit your needs. If you choose to remove benefits that have now become optional from your existing coverage, it may impact your premium.
What information do I need to know before speaking to my insurance representative?
Before speaking with your insurance representative, you should review your current auto insurance policy to better understand what coverage you currently have and think about your needs. Thoroughly review your personal or work benefits to see if they already provide similar coverage.
Can I change my optional benefits after I’ve selected them?
You may need to change your optional Accident Benefits if your situation changes, such as starting a new job, having children, or taking on caregiving responsibilities. You can change your optional benefits at any time, but only the coverage in place at the time of an automobile accident will apply to your claim. To update your coverage, contact your insurance representative to review your options and make sure your policy reflects your current needs.
Will these changes affect all drivers / types of auto insurance policies?
Yes, the changes to Accident Benefits optionality will impact all drivers and auto insurance policies in Ontario, including personal private passenger, commercial/public, and recreational vehicle policies.
Do Accident Benefits, including the optional coverages I purchased, apply when renting a car?
You may be covered for certain Accident Benefits coverages when renting a car. Remember to review your auto insurance policy and the rental contract to understand what you’re covered for.
Will passengers in my car still be covered if I opt-out of certain coverages?
As of July 1, 2026, optional Accident Benefits coverage will only apply to the named insured, their spouse, dependants of the named insured and of the named insured’s spouse and listed drivers. Passengers injured in an automobile accident will not be covered for optional benefits unless they fall into one of these groups under an auto insurance policy that includes optional benefits. However, some Accident Benefits will still apply to all passengers.
What happens to uninsured pedestrians and cyclists?
Standard Accident Benefits will still apply to uninsured pedestrians and cyclists. Optional Accident Benefits coverage will only apply to the named insured, their spouse, dependants of the named insured, the named insured’s spouse, and listed drivers. Pedestrians and cyclists injured in an automobile accident will not be covered for optional benefits unless they fall into one of these groups under an auto insurance policy that includes optional benefits.
What should I do if I have an ongoing claim when the changes take effect?
There is no impact to ongoing claims. The auto insurance coverage you had at the time of the accident applies to your claim.
If I have both auto insurance and a supplementary health insurance plan, which one do I claim from first if I’m injured in an automobile accident?
If you are injured in an automobile accident, you may have coverage through both your auto insurance and your supplementary health insurance plan. Starting July 1, 2026, Ontario is making changes to ensure that auto insurance will pay first for medical or rehabilitation benefits (except for medication costs) for an injury sustained in an automobile accident. This means your auto insurance provider will cover these costs before your workplace or private health plan, helping you preserve those benefits for other life events.
What happens if I do not want any of the optional benefits?
If you are injured and do not have coverage under your auto insurance, some expenses may be covered by the Ontario Health Insurance Plan (OHIP), other medical or benefit plans or other types of insurance plans you may have purchased (e.g.: life or disability). You may have to pay out of pocket, if you are not otherwise covered.
Where can I read the official details?
Visit Auto Insurance | Financial Services Regulatory Authority of Ontario for the details directly from Financial Services Regulatory Authority of Ontario (FSRA) and e-Laws | Ontario.ca for the Statutory Accident Benefits Schedule (SABS).
