Taking Control: Essential Changes Coming to Your Auto Insurance Accident Benefits in 2026

If you drive in Ontario, major changes are coming to your auto insurance policy that will give you unprecedented choice and control over your coverage. Starting soon, the mandatory, “one-size-fits-all” approach to certain Statutory Accident Benefits (SABS) is ending.

These reforms are designed to make auto insurance more flexible and consumer-focused, allowing you to tailor your policy to fit your specific needs and budget. While greater flexibility is a positive step, it means that being an informed consumer is more critical than ever.

Here is everything you need to know about the upcoming shift in accident benefits coverage.

When Will These Changes Happen?

The significant reforms to Ontario auto insurance accident benefits will take effect starting July 1, 2026.

What Are Statutory Accident Benefits (SABS)?

Statutory Accident Benefits (SABS) provide essential financial support if you are injured in a car accident. These benefits are available regardless of who caused the accident and are designed to cover necessities like medical treatment, rehabilitation, and financial support if you cannot work due to your injuries.

What Will Change: Mandatory vs. Optional Benefits

The fundamental shift involves moving many previously mandatory benefits into the optional category. Drivers will now have the power to select or remove specific coverages when they purchase or renew their policy.

Essential Coverage That Remains Mandatory

To ensure everyone retains access to core recovery support, the following accident benefits will continue to be mandatory and cannot be removed from your policy:

• Standard medical, rehabilitation, and attendant care benefits.

These essential benefits cover medical expenses, therapy, and assistance with personal care for injuries resulting from an accident. This includes things like doctor visits, physiotherapy, and help with daily activities such as bathing and dressing.

Accident Benefits Becoming Optional

Starting July 1, 2026, many Statutory Accident Benefits previously included in every auto insurance policy will become optional. This gives consumers more choice and control over their coverage. Drivers can choose to remove or add these optional benefits to their policy for themselves and other covered persons, depending on their personal needs.

The benefits that are transitioning to an optional status cover a wide range of support:

• Income Support: This includes Income Replacement, which helps replace income you may lose because of an accident. It also includes the Non-earner benefit, which provides financial support while recovering if you are a student or unemployed and an accident impacts your daily activities or keeps you from leading a normal life.

• Care and Education: If you or another covered person is injured and can no longer provide care for a household member, such as a child or aging parent who relies on you for daily care, Caregiver benefits cover those caregiving expenses. Additionally, if a car accident keeps you from attending school or an educational program, Lost educational expenses help cover the costs that were lost.

• Home and Property: Optional benefits include assistance with household duties via the Housekeeping and Home Maintenance benefit, which helps cover costs if you or another covered person is unable to perform these tasks normally done before the accident due to injury. Coverage also extends to physical property damage via Damage to Personal Items, which helps cover the cost to repair or replace items damaged in the accident, such as clothing, prescription eyewear, or hearing aids.

• Family Support: Expenses of Visitors covers reasonable and necessary expenses for certain visitors—such as a spouse, child, parent, or sibling—if you or another covered person is injured. Finally, in the event of a fatality due to an auto accident, Death benefits provide financial compensation to certain family members, and Funeral benefits help cover some of the related costs.

Drivers will need to review and decide whether they would like to keep, add, or remove this optional coverage. You can also still choose to add supplementary benefits, such as Supplementary Medical, Rehabilitation, and Attendant Care benefits (which help cover expenses beyond the standard limits), Dependant Care benefits, and Indexation benefits (which help ensure the income replacement benefit is adjusted to reflect cost-of-living changes each year).

How These Changes Will Affect Consumers

These reforms fundamentally change how Ontarians approach purchasing auto insurance, impacting both coverage costs and eligibility.

Eliminating the “One-Size-Fits-All” Approach The key benefit of these changes is the elimination of the one-size-fits-all coverage model. Many Ontarians previously paid for benefits they already possessed through their employer or private plans. These changes ensure consumers are no longer locked into paying for redundant benefits. By removing optional benefits from your existing coverage, it may impact your premium.

Auto Insurance Becomes the First Payor Starting July 1, 2026, Ontario is also implementing changes that ensure auto insurance becomes the first payor for medical or rehabilitation claims (excluding medication expenses) following an auto accident. This means your auto insurance provider will cover these costs before your workplace or private health plan, helping you preserve those private benefits for other life events.

Changes to Who is Covered by Optional Benefits One critical change relates to who is covered by optional benefits. Starting July 1, 2026, optional benefits purchased under your auto policy will only apply to specific individuals:

• 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.

This means that passengers, uninsured pedestrians, and cyclists who do not fall into these categories under your policy may no longer be eligible for the optional accident benefits you purchase. However, it is important to remember that standard accident benefits will still apply to all passengers, uninsured pedestrians, and cyclists.

What Happens to Current Policies?

If you are an existing customer, your current coverage will automatically continue when your policy renews, unless you proactively notify your insurer, agent, or broker that you wish to make changes. You will need to review and decide whether to keep, add, or remove optional coverage. New customers purchasing policies on or after July 1, 2026, can choose which optional benefits they want to purchase.

How Consumers Can Protect Themselves

These reforms put consumers in the driver’s seat, but with that control comes the responsibility to ensure you have the appropriate protection. Before deciding whether to remove or add optional benefits, you should follow these essential steps:

1. Review your current auto insurance coverage: If you are an existing customer, understand what benefits you currently have through your policy today.

2. Review your workplace or private benefits plan: Check if you already have coverage through your employer, private benefits plan, or life and health insurance providers, which could help you avoid duplication.

3. Think about your needs: Consider which coverage is right for your personal and family situation, and assess whether opting out of certain benefits is practical. For instance, you may need to change optional benefits if your situation changes, such as starting a new job or taking on caregiving responsibilities.

4. Speak to your insurer, agent, or broker: They are available to help explain your options in relation to your auto insurance coverage and ensure you make informed decisions that best fit your needs and budget.

---

FAQ Navigating the 2026 Reforms

1. When do these changes to accident benefits take effect? The changes to make many accident benefits optional begin on July 1, 2026.
2. Which accident benefits remain mandatory? Medical, rehabilitation, and attendant care benefits will remain mandatory and are required in every auto insurance policy to ensure access to essential recovery support.
3. If I am an existing customer, will my policy coverage change automatically? No. Your current coverage will automatically continue when your policy renews, but you have the opportunity to review and decide whether you would like to keep, add, or remove the optional benefits.
4. What are some of the key benefits becoming optional? Benefits becoming optional include income replacement, non-earner benefits, caregiver benefits, lost educational expenses, housekeeping and home maintenance, damage to personal items, death benefits, and funeral benefits.
5. Why is Ontario making these benefits optional? These reforms are intended to give drivers more choice and control over their coverage, eliminating a “one-size-fits-all” approach and allowing consumers to avoid paying for benefits they may already have through other private or employer plans.
6. If I remove optional benefits, will it affect my insurance premiums? If you choose to remove benefits that have become optional from your existing coverage, it may impact your premium.
7. Who is covered by the optional benefits I purchase? Starting July 1, 2026, optional benefits will only apply to the named insured, their spouse, their dependants (and the spouse’s dependants), and persons listed in the policy as drivers.
8. Will pedestrians and cyclists still be covered under my policy if I opt out? Standard accident benefits will still apply to uninsured pedestrians and cyclists. However, optional benefits coverage will only apply to them if they fall into one of the specific categories listed in your policy (e.g., as the named insured, spouse, or dependant).
9. If I have both auto insurance and a supplementary health plan, which one pays first for claims? Starting July 1, 2026, auto insurance will pay first for medical or rehabilitation benefits (except for medication costs) following an auto accident, helping to preserve your workplace or private health benefits for other life events.
10. Can I change my optional benefits after I select them? Yes, you can change your optional benefits at any time if your situation changes, such as starting a new job or taking on caregiving responsibilities. However, only the coverage in place at the time of an auto accident will apply to your claim. You should contact your insurer, agent, or broker to update your policy.