Ontario’s auto insurance reform takes effect today, July 1, 2026. Several accident benefits that used to be automatic are now optional, the list of people covered for those benefits has narrowed, and your auto insurer now pays medical and rehab bills first. Here is what is live as of today and what it means for you.
Download the guide: Ontario Auto Insurance Is Changing
What changed today
Three things changed as of July 1, 2026, under Ontario Regulation 383/24:
- Most accident benefits are now optional. Income replacement, caregiver, non-earner, housekeeping, and several others are no longer automatic. Medical, rehabilitation, and attendant care stay mandatory in every policy.
- Coverage for optional benefits narrowed. Optional benefits now apply only to the named insured, spouse, dependants, and listed drivers. This applies to every policy today, regardless of your renewal date.
- Your auto insurer pays first. For any accident in Ontario on or after today, your auto policy covers medical and rehab bills ahead of your workplace or private health plan (medication excepted).
What this means right now
If you do nothing, your current coverage continues. Your policy renews with the same benefits and limits unless you agree in writing to change it. You do not lose your existing accident benefits automatically.
Two changes apply to you today even without any action:
- The narrower covered-person definition for optional benefits is already in effect.
- The first-payer rule already applies to any crash from today forward, which works in your favour.
The decision arrives at your renewal
The choice point is your next renewal, or any new policy you buy. At that moment you can:
- Keep the same coverage you have today
- Choose the new standard coverage (for caregiver and housekeeping, the standard now covers all impairments, which is broader than before)
- Drop optional benefits you do not need
When you buy or change optional benefits, your insurer issues a new endorsement called the OPCF 47R, which records what you kept or declined and who is covered. The standard form does not need your signature.
A caution before you drop anything
It is tempting to trim coverage to save money. Two things to keep in mind:
- The average saving from opting out is modest, around 5% per actuarial estimates, sometimes a few dollars a month.
- Opting out is not fully reversible. If you drop a benefit and want it back later, you move to the current coverages, limits, and bundles. You cannot restore your exact old package.
Before you opt out of income replacement, confirm what your workplace or private disability plan actually covers. Verify it. Do not assume.
Your move today
- Find your renewal date. That is your decision point.
- Pull your current policy and your workplace benefits summary.
- Decide what fits your income, your dependants, and who drives or rides with you.
- Talk to a licensed Ontario broker before you change anything.
We are here to help
The reform gives you control. A short review makes sure your choice is the right one for your household, not a guess made under time pressure at renewal.
Get certain about your coverage. Download our free guide, “Ontario Auto Insurance Is Changing,” for a full breakdown and a pre-renewal checklist, or book a free review with our personal lines team: 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
- Actuarial Notes, Ontario reform makes most accident benefits optional (Aug 2025, reviewed Apr 2026) – https://actuarialnotes.com/ontario-auto-reform-most-accident-benefits-go-optional/
