Starting July 1, 2026, you can opt out of many Ontario auto accident benefits to lower your premium. The question is if you should. For most drivers, the honest answer is: keep almost everything, and only drop a benefit when you have real coverage somewhere else.
Here is how to make that call with a clear head, before your renewal forces a quick decision.
First, the math
Premium savings from opting out are modest. An actuarial summary referencing Oliver Wyman costing reports published by FSRA puts the average saving at roughly 5%. For many drivers that is a few dollars a month.
Now the other side. Drop income replacement with no workplace disability plan, then break a leg and miss four months of work, and you have no income support from your auto policy. That is not a few dollars. That is months of lost pay.
Small savings, large risk. That is the trade-off at the heart of this reform.
The benefits most people should keep
Some benefits protect your income or your ability to run your household. These are the ones to think hardest about before dropping.
- Income replacement. Pays 70% of your gross weekly income up to $400 per week, with higher optional limits. Keep it unless your workplace disability plan is strong and you have confirmed the details.
- Caregiver. Keep it if you are the primary caregiver for a child, an aging parent, or a person with a disability.
- Housekeeping and home maintenance. Worth keeping if no one else can shovel the driveway or clean the house while you recover. After July 1, 2026, the standard version of this benefit covers all impairments, which is broader than before.
- Non-earner. If you are a student or not currently employed, this may be the only income-style support available to you.
A simple three-question test
Run each optional benefit through these three questions:
- Do you already have it elsewhere? Strong workplace disability coverage can make auto income replacement less essential. Confirm the amount, the waiting period, and how long it pays before you rely on it.
- What is the worst case if you drop it? If the gap is a cost you could not absorb, keep the benefit.
- Is the saving worth the exposure? A few dollars a month rarely justifies losing income protection or caregiver support.
If you cannot answer question one with confidence, do not opt out of that benefit yet.
The trap to avoid
Two cautions worth flagging.
First, do not assume your workplace plan covers you. Many people opt out to save a small amount, then learn after a crash that their group plan has a long waiting period or a low cap. Verify it in writing.
Second, opting out is not fully reversible. If you drop a benefit and later want it back, you move to the post-2026 coverages, limits, and bundles. You cannot simply restore your exact old package. Decide carefully before you remove anything.
What does not change
A reminder so you do not over-worry. Medical, rehabilitation, and attendant care stay mandatory in every policy. And your auto insurer now pays medical and rehab bills first, ahead of your workplace plan, which preserves that plan for other life events. You keep a strong core no matter what you choose.
How to decide without guessing
You do not have to figure this out alone. Bring two documents to a broker:
- Your current auto policy (the declarations page)
- Your workplace or private benefits summary
With those two in hand, a broker can tell you exactly where you can save without exposing yourself, and handle the paperwork either way.
Decide before the deadline. Our free guide, “Ontario Auto Insurance Is Changing,” includes a decision framework and a pre-renewal checklist. Download it, or book a free review with our personal lines team at: Schedule with Tara
Sources
- 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
- 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/
- 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
- Rates.ca, Ontario 2026 auto insurance changes explained – https://rates.ca/resources/ontario-2026-auto-insurance-changes-explained
