Ontario auto insurance changes on July 1, 2026, and the change affects every driver in the province. Several accident benefits that have been built into every policy become optional. For the first time, you decide what to keep.
This is a real shift in control. It is also a decision, and the wrong call can cost you after a serious crash. Here is the plain-language version of what is changing and what to do about it.
What are accident benefits
Accident benefits, or Statutory Accident Benefits (SABs), are the no-fault benefits in your Ontario auto policy. No-fault means they are available to you regardless of who caused the accident. They help you recover, covering things like medical treatment, lost income, and care at home.
Until now, every Ontario policy carried the same standard package. The reform, made under Ontario Regulation 383/24 and effective July 1, 2026, keeps a mandatory core and turns the rest into choices.
What stays mandatory
Three benefits stay in every Ontario auto policy:
- Medical
- Rehabilitation
- Attendant care
These cover treatment, therapy, and personal care if you are injured. You can also buy higher limits for them. Nothing you do is required to keep this core coverage.
What becomes optional
On July 1, 2026, these benefits become optional. You can keep them, but you have to choose them:
| Benefit | What it covers |
| Income replacement | Part of your income if a crash keeps you from working |
| Caregiver | Care costs if you can no longer look after a dependant |
| Non-earner | Support if you are a student or unemployed and cannot lead a normal life |
| Lost educational expenses | Tuition and program costs you paid but cannot use |
| Expense of visitors | Family travel and lodging to visit you in recovery |
| Housekeeping and home maintenance | Cleaning, snow clearing, and upkeep you cannot do |
| Damage to personal items | Clothing, glasses, and hearing aids damaged in the crash |
| Death and funeral | A benefit to your family and help with funeral costs |
If you opt out of one of these, that cost falls on you, your savings, or another plan you may or may not have.
A change that works in your favour
One part of the reform helps you. For accidents on or after July 1, 2026, your auto insurer becomes the first payer for medical and rehabilitation bills, ahead of your workplace or private health plan (medication is the exception).
Today, many injured people have to run bills through a workplace plan first. The new order means faster access to treatment and lets you preserve your workplace and private plans for other life events.
Who is covered changes too
For the optional benefits, coverage narrows to a defined group:
- The named insured (you)
- Your spouse
- Your dependants
- People listed on the policy as drivers
Uninsured passengers and pedestrians lose access to optional benefits under a vehicle’s policy unless they have their own auto policy with those benefits. This applies to every policy on July 1, 2026, regardless of your renewal date.
Do you have to do anything
No, not to keep what you have. Your policy renews with the same coverage and limits unless you agree in writing to change it. You can keep exactly the coverage you have today.
The decision only arrives if you want to drop a benefit to save money, or if you are buying a new policy, where the insurer must quote the mandatory coverage and offer every optional benefit with a price for each.
What to do before your renewal
Four steps, in order:
- Check your current policy. Find out which benefits and limits you have today.
- Check your other coverage. Review workplace benefits, private disability, and life and health plans.
- Decide what fits your life. Match benefits to your income, your dependants, and who drives or rides with you.
- Talk to a licensed Ontario broker before you change anything.
The bottom line
More choice is good. A default no longer protects you, so the choice is yours to make on purpose. A short review now means you walk into your renewal already knowing what to keep and what you can safely skip.
Get the full guide:
Our free guide, “Ontario Auto Insurance Is Changing,” walks through every optional benefit, who is covered, and how to decide. Download it, or book a free coverage review with me at: Schedule with Tara
Sources
- FSRA, Changes in Statutory Accident Benefits coverage in Ontario on July 1, 2026 – https://www.fsrao.ca/industry/auto-insurance/changes-statutory-accident-benefits-coverage-ontario-july-1-2026
- RIBO, Ontario Auto Insurance Reforms Industry FAQ (updated March 2026) – https://www.ribo.com/wp-content/uploads/2025/12/Ontario-Auto-Insurance-Reforms-Industry-FAQs.pdf
- Ontario.ca, O. Reg 383/24 (Statutory Accident Benefits Schedule amendment) – https://www.ontario.ca/laws/regulation/r24383
- Insurance Bureau of Canada, Ontario Auto Insurance Changes – https://www.ibc.ca/issues-and-advocacy/auto-insurance/ontario-auto-insurance-changes
