Ontario’s auto insurance system changed significantly on July 1, 2026. Several accident benefits that were previously included as standard coverage are now optional, giving drivers more choices about the protection included in their policies.
With more choice, however, comes more complexity. Drivers may hear that they can now “opt out” of accident benefits, that their existing benefits disappeared on July 1, or that only medical benefits remain available. The reality is more nuanced, particularly for people renewing policies that were already in effect before July 1.
The following FAQs explain what changed, what remains mandatory, and what Ontario drivers may want to look for when reviewing their auto insurance coverage.
What Changed to Ontario Auto Insurance on July 1, 2026?
Previously, Ontario’s Statutory Accident Benefits Schedule provided a package of accident benefits as part of standard automobile insurance coverage. These benefits may provide financial assistance following an accident, regardless of who caused the collision.
As of July 1, 2026, only medical, rehabilitation and attendant care benefits remain mandatory accident benefits for new policies. Other accident benefits that were previously standard are now optional. Drivers can choose whether to purchase them as part of their coverage.
The changes are intended to give consumers greater flexibility to customize their insurance coverage and premiums. However, the choices made when purchasing or changing a policy can affect the benefits available after a serious collision.
Which Accident Benefits Are Now Optional?
For policies entered into on or after July 1, 2026, a number of benefits that Ontarians may previously have expected to be included automatically must now be selected as optional coverage.
These include income replacement, non-earner, caregiver, lost educational expenses, visitor expenses, damage to personal items, death and funeral, housekeeping and home maintenance, dependent care, and indexation benefits.
Some of these benefits address expenses or financial losses that can arise when injuries prevent someone from working, studying, caring for family members, maintaining a household, or carrying out other aspects of everyday life.
Are Medical and Rehabilitation Benefits Optional Too?
No. Standard medical, rehabilitation, and attendant care benefits remain mandatory.
For a non-catastrophic impairment, the standard combined medical, rehabilitation and attendant care limit is $65,000. Consumers can purchase increased coverage of $130,000 or $1 million.
For catastrophic impairments, the standard medical, rehabilitation and attendant care limit is $1 million, with an option to increase it to $2 million. The precise availability and terms of optional or increased coverages should be confirmed when purchasing or reviewing a policy.
Did My Existing Accident Benefits Automatically Disappear on July 1?
Not necessarily. This is an important distinction in the new system.
According to guidance from the Financial Services Regulatory Authority of Ontario (FSRA), existing policies generally renew with their pre-July 2026 accident benefit coverages and limits until the consumer agrees in writing to make changes. In other words, July 1 did not simply erase all previously included accident benefits from every existing policy.
Existing policyholders can nevertheless review and adjust their accident benefit selections. Because the rules for new policies and existing renewals operate differently, drivers should carefully review their own policy documents rather than assume that the coverage of another driver applies to them.
What Happens If I Buy a New Auto Insurance Policy?
For a new policy entered into on or after July 1, 2026, medical, rehabilitation and attendant care benefits are the only accident benefits automatically required under the new system.
The other accident benefits must be selected if the consumer wants them included. Insurers are required to offer these optional accident benefits, although the way options and packages are presented may differ between insurers.
This makes reviewing the actual coverage selections particularly important when obtaining a new policy or changing insurers. A lower premium quotation, for example, may reflect different accident benefit selections rather than simply a lower price for identical coverage.
Can I Opt Out of Income Replacement Benefits?
Income replacement benefits are now optional for new policies. They are designed to partially replace employment income when an insured person is unable to work because of injuries sustained in an automobile accident.
Where purchased, the standard income replacement benefit is 70 percent of gross income, up to $400 per week. Optional increases can raise the weekly maximum to $600, $800 or $1,000.
A person’s employment benefits, disability insurance, financial circumstances, income and other available coverage may therefore be relevant when considering insurance options. Policyholders should understand both what coverage they have elsewhere and what their auto policy provides.
What About Caregiver and Housekeeping Benefits?
Caregiver, housekeeping and home maintenance benefits also became optional on July 1, 2026. The reforms made additional changes to how these benefits can be offered. FSRA states that for new business, insurers are required to offer coverage that applies to all impairments as the legislated standard option. Insurers may also offer a catastrophic-impairment-only alternative if that option has been filed and approved.
For existing customers, FSRA identifies several possibilities at renewal, including maintaining their existing coverage, choosing the new all-impairment coverage, or declining the optional coverage. This is another area where simply asking whether a benefit is “included” may not provide the full picture.
Are Death and Funeral Benefits Still Automatically Included?
For new policies entered into on or after July 1, death and funeral benefits are optional rather than mandatory accident benefits.
Where the applicable coverage has been purchased, death benefits can provide payments to eligible family members following a fatal automobile accident, while funeral benefits can contribute toward funeral expenses.
Because these benefits are no longer automatically part of every new policy, consumers reviewing their coverage may want to determine whether they have selected them and what limits apply.
Does Optional Mean My Insurer Does Not Have to Offer the Coverage?
No. “Optional” generally means that the consumer can choose whether to purchase the coverage. It does not mean that insurers are free to simply eliminate the statutory optional benefits from their offerings.
FSRA’s guidance states that insurers cannot introduce underwriting rules that decline these optional accident benefit coverages merely because the benefits have become optional. Insurers may package or bundle certain optional coverages, subject to applicable regulatory requirements.
The options presented, premiums charged, and available enhanced limits can therefore vary. Reviewing the details of a quotation or renewal package can help clarify exactly what is being offered.
Who Can Be Covered by Optional Accident Benefits?
Optional accident benefits can have implications beyond the individual who purchased the policy. FSRA indicates that optional accident benefits can apply to the named insured, the named insured’s spouse, their dependents, the spouse’s dependents, and people listed as drivers of the insured automobile.
This makes the decision potentially relevant to the needs of an entire household. FSRA has also encouraged insurers to ensure drivers are properly listed on policies to promote clarity about available coverage.
Can I Change My Accident Benefits Before My Policy Renews?
Consumers do not necessarily have to wait for renewal to explore their options. FSRA has indicated that accident benefit optionality should be available to customers starting July 1, 2026. If an existing customer requests different options before renewal, including when adding or substituting a vehicle, insurers are expected to have a process for providing those choices.
Any change should be documented carefully. Policyholders can also retain copies of their policy, renewal documents, endorsements and written coverage selections so there is a clear record of what was purchased.
What Should I Check When Reviewing My Ontario Auto Policy?
The July 1 reforms make it increasingly important to distinguish between what is mandatory, what is optional, and what a particular policyholder has actually selected.
When reviewing a policy or renewal package, consumers can look at whether income replacement, non-earner, caregiver, housekeeping and home maintenance, death and funeral, and other optional benefits are included. They can also review the limits for mandatory medical, rehabilitation and attendant care coverage and determine whether increased limits were purchased.
The central point is that two Ontario drivers may now have materially different accident benefits coverage. The benefits available after a collision will depend on the applicable legislation, the circumstances of the claim, and the individual’s insurance coverage.
Ontario Drivers Have More Choices, Making Policy Details More Important
The July 1, 2026, changes did not eliminate Ontario’s accident benefits system. Instead, they changed which benefits must automatically be included and which can be selected by consumers.
For drivers, passengers and families dealing with the aftermath of a collision, the distinction can be significant. Determining available benefits may require a close look at when the policy was issued or renewed, which options were selected, who is insured under the policy, and the nature of the injuries and losses involved.
Tierney Stauffer LLP: Ontario Car Accident Lawyers Helping Injured People Understand Their Claims
Ontario’s new auto insurance rules can make an already complicated accident benefits system more difficult to navigate. If you have been injured in a car accident in Ontario, understanding which Statutory Accident Benefits (SABS) may be available under your automobile insurance policy can be an important part of the claims process.
The experienced Ontario personal injury lawyers at Tierney Stauffer LLP assist people injured in motor vehicle accidents with accident benefits and personal injury claims throughout Ottawa, Kingston, Cornwall and North Bay. Contact us online or call 1-888-799-8057 to discuss an Ontario car accident claim, questions about accident benefits coverage, or an insurance dispute following a motor vehicle collision.
