Ontario Auto Insurance Changes 2026

Proposed changes to Ontario’s auto insurance system will impact which accident benefits are covered by an auto insurance policy and which benefits are optional for the driver on July 1, 2026.

Medical, rehabilitation and attendant care benefits will still be required under the Ontario auto insurance changes for 2026. The majority of other Statutory Accident Benefits, such as income replacement, caregiver, non-earner, housekeeping and home maintenance, death and funeral benefits are now available to be chosen.

The modifications are designed to offer Ontario drivers the flexibility they require for personalizing their auto insurance policy to fit their requirements and budget. Meanwhile, they put more emphasis on educating policyholders on the types of protection offered by their policies prior to an auto accident.

This is especially significant as the accident benefits would provide financial assistance even in the event of an accident, if it was not caused by the other party. If they are seriously injured, the person who omitted the optional accident benefits from their policy may have decreased financial support.

There’s also an existing policy rule that should be familiar to existing policyholders. If a policy is renewed on, or after, July 1, 2026, certain benefits previously provided are generally considered to be continued as optional benefits at the same amounts provided unless the named insured and insurer agree in writing to reject or reduce the amounts. New policies, however, are subject to the new optional-benefits system from the beginning.

Knowing what has evolved (and what hasn’t) can assist Ontario drivers make better decisions when shopping for, and renewing, car insurance coverage.

Overview of Statutory Accident Benefits

Statutory Accident Benefits (SABS or accident benefits) are benefits that cover financial and treatment costs for individuals injured in motor vehicle collisions in Ontario, whether or not they were at fault. Medical, rehabilitative and attending care benefits are still required as of July 1, 2026, with most other benefits being optional.

The Statutory Accident Benefits Schedule (SABS) is the legislation in Ontario that regulates accident benefits. Ontario’s typical car insurance coverage policy contained a number of types of financial assistance before the car insurance changes of 2026. The new system provides policyholders with greater choice over these benefits.

Optional accident benefits might include coverage for the following:

• Income replacement benefits
• Non-earner benefits
• Caregiver benefits
• Housekeeping and home maintenance benefits
• Lost educational expenses
• Expenses of visitors
• Compensation for certain damaged personal items
• Death benefits
• Funeral benefits
• Dependant care benefits
• Indexation benefits
• Increased medical, rehabilitation, and attendant care limits

FSRA verifies these coverages can be installed or kept contingent on a driver’s insurance policy and individual situation.

There is a difference between required and optional coverage. After the reforms, every type of accident benefit is not included in the car insurance policy.

Mandatory Medical Rehabilitation And Attendant Care

Medical, rehabilitation, and attendant care benefits remain mandatory under Ontario auto insurance after July 1, 2026. These benefits help pay eligible expenses associated with medical treatment, rehabilitation, recovery, and personal assistance following injuries caused by a motor vehicle accident.

Depending on the injured person’s circumstances and the rules, medical and rehabilitation benefits may pay for eligible services provided that are not otherwise covered by the public health care system in Ontario.

These services can include:

• Physiotherapy
• Occupational therapy
• Psychological treatment
• Speech-language therapy
• Chiropractic treatment
• Rehabilitation programs
• Assistive devices
• Assessments and treatment plans
• Certain other accident-related health care services

Attendant care benefits are provided to assist an injured person who has sustained severe injuries and needs help with personal care and/or activities of daily living after a motor vehicle accident.

A person injured may need help getting dressed, getting into the bathtub, getting around, cooking meals or supervision due to a traumatic brain injury, spinal cord injury, a serious fracture, or any other significant damage to their body.

The maximum combined value of medical, rehabilitation and attendant care benefits for non-catastrophic impairments is currently $65,000. The typical combined limit is $1 million for catastrophic impairments. However, policyholders might also be offered the option of obtaining more coverage, such as more coverage for serious injuries.

The meaning of an injury classification is of special significance following a serious collision. In his article on Common Car Accident Injuries and Legal Issues in Ontario, Grillo Law explores the various ways an injury type can impact treatment, accident benefits, and a personal injury claim.

If you are injured to the extent of being categorised as a catastrophic injury under Ontario’s definition, you may also qualify for certain benefits. If you are injured to the extent that you are classified as a catastrophic injury under Ontario’s definition, you may be eligible to receive certain benefits. Additional information can be found at Grillo Law’s catastrophic injury attorneys.

Auto Insurance Accident Benefits Payment Order

A major shift in 2026 relates to who pays first for the eligible medical and rehabilitation costs.

Generally, starting July 1, 2026, the insurance company for motor vehicle accidents in Ontario will be the first to pay eligible medical and rehabilitation costs (excluding medication costs). Claimants who were previously required to use a workplace or additional private health insurance plan before a claim could be made for eligible medical and rehabilitation costs are no longer required to use a workplace or additional private health insurance plan before the costs of their injury are covered by auto insurance.

An injured party who had extended health benefits from an employer, union, professional association or private insurance plan may have had to use the extended benefits first before turning to benefits from an automobile accident before the change.

With the new first-payer system, other health services may still be available through health insurance in the workplace or privately to maintain other health benefits. But it can also mean that an injured person’s medical and rehabilitation coverage on their auto insurance policy will be utilized faster following a major accident.

The new rule treats medication costs differently, and may still require coordination with the other health plan that is available.

In addition, there are rules for who gets paid first for what if an injured person has more than one auto insurance policy that may respond.

The OPCF 47R: Optional Accident Benefits Coverage & Priority of Payment endorsement was added to the 2026 changes in Ontario. An insurer will not be able to rely upon the normal statutory priority rules to stop an eligible person from proceeding under the endorsement, if the eligible person chooses to do so and agrees to abandon the right to a claim for accident benefits under another policy.

Where a person may be covered by more than one automobile insurance policy, which include optional benefits that differ in limits, this may be important.

Optional Accident Benefits

Most financial and expense-related Statutory Accident Benefits (SABS) were made optional, not automatic, on July 1, 2026, for all new Ontario auto insurance policies. Drivers should therefore check the actual benefits listed on their policy and not take for granted that they will have the same accident benefits as those which were traditionally offered with normal insurance cover.

Accident benefits are optional coverage that helps individuals recover from an accident if they sustain any injury that interferes with their ability to work, care for dependents, maintain a home, attend school or pay other expenses caused by a collision.

Some optional benefits may be offered depending on the insurer and policy, such as income replacement, non-earner, caregiver, housekeeping and home maintenance, lost educational expenses, visitor expenses, death and funeral benefits, dependant care, and indexation benefits.

They may also obtain increased coverage for necessary medical, rehabilitation and attendant care benefits.

Importantly, the benefits of an existing policy don’t automatically expire at the end of July 2026. The rules of transition in Ontario allow for certain accident benefits to remain at the same amount as before until the policyholder and insurer express their wish to terminate or amend these benefits in writing.

Auto insurance quote comparison should thus extend beyond just price and cover coverage. A lower premium could be due to different optional accident benefits or limits.

Caregiver Benefits and Related Changes

Under the Ontario 2026 plan for auto insurance, the benefits for caregivers are voluntary options. When they are purchased, they can offer some compensation for expenses if an injured individual is unable to do the duties they were able to do prior to the motor vehicle accident.

A caregiver benefit might be applicable if, for whatever reason, a caregiver in a home is unable to continue caring for a household member without taking on the role of primary caregiver due to injury sustained in an accident.

There were also caregiver coverage structure reforms in the 2026. Until 1 July 2026, the standard insurance option was for catastrophic impairment, and higher non-catastrophic coverage could be added on. The new system does not mandate caregiver coverage; rather, insurers must provide coverage based on an impairment, not just catastrophic impairment.

The same is true for housekeeping and home maintenance benefits. The benefits may provide a source of funding to cover eligible expenses if an injured party cannot complete their household duties due to injuries from a motor vehicle accident.

If a product has been filed and approved, FSRA believes an insurer might be able to provide a catastrophic impairment only option for caregiver and housekeeping coverage. Existing customers may retain the services they have already, opt for the newer all-impairment or refuse the optional coverage.

The new regulatory regime has been defined by the term “no prescribed limits” and this does not imply unlimited coverage. The amount due is based on the optional coverage chosen and the conditions of the insurance policy that covers the incident.

To learn more about the costs that can be incurred following a serious injury, read Grillo Law’s article about compensation for care after a personal injury accident.

Income Replacement and Non-Earner Benefits

In Ontario, accident benefits are now optional because they are income replacement and non-earner benefits. Someone wishing to have these types of financial security must check if their policy covers them before an accident.

Income replacement benefits are intended to provide financial support if the individual is injured as a result of the accident and is unable to carry out the primary duties of their job.

With the old standard system, income replacement typically replaced 70% of your gross income up to $400 per week, and a higher level could be achieved with additional coverage options. With the post-July 1, 2026 framework, the amount will be based on the optional benefit that is purchased. Different companies might provide different coverage limits, people should make sure to review what their insurance policy states.

This could be particularly important if your main income comes from employment or self-employment and you have little or no income protection, like workplace disability insurance.

Non-earner benefit is for a different purpose. It can contribute to an income replacement benefit for an eligible injured person who has been totally unable to lead a normal life, but who is not entitled to an income replacement benefit, in accordance with the requirements contained in the SABS.

Others, such as students, the unemployed and some individuals not in the labor force, may wish to determine if non-earner coverage is suited to their situation.

From July 1, 2026, however, the benefit will only be paid if the applicable optional coverage was included in the policy and the payable benefit will be limited to the coverage specified in the policy.

Who Is Covered After the Changes

The 2026 changes also restrict who can access optional accident benefits under a particular auto insurance policy.

As of July 1, 2026, optional benefits apply only to:

• The named insured
• The named insured’s spouse
• Dependants of the named insured
• Dependants of the named insured’s spouse
• People specifically listed in the policy as drivers of the insured automobile

Although mandatory medical, rehabilitation and attendant care benefits are still part of the Ontario accident benefits system, this eligibility change also applies to optional accident benefits.

This difference can make a big difference in the lives of those injured as passengers, pedestrians or bicyclists.

Even if the pedestrian or passenger does not have mandatory accident benefits under the applicable SABS and insurance priority rules, he or she may still be entitled to these benefits. They can’t however presume that benefits they choose under another person’s car insurance policy will apply to them, just because the insurance company is covering the claim for the accident benefits.

The narrower definition of optional coverage could also have a significant impact on pedestrians, cyclists and certain passengers receiving a wider package of statutory accident benefits, Siskinds said.

Homes must ensure that those who frequently drive an insured vehicle are identified on the policy and be aware of who is covered by the optional coverages.

Risks And Who Is Most Vulnerable

The Ontario auto insurance changes might leave individuals with more financial exposure if they opt out of benefits without another source of financial protection.

Those who might be especially affected are people who:

• Rely on employment or self-employment income and have limited disability coverage
• Are the primary caregiver for children or other dependants
• Would struggle financially if they could not work after an accident
• Are students or are currently outside the workforce
• Have significant household or caregiving responsibilities
• Do not have workplace health or disability benefits
• Regularly drive vehicles but may not be properly listed on the applicable policy
• Could require extensive rehabilitation or long-term assistance following a serious injury

Serious motor vehicle accidents can result in months or years of medical treatment and lost income. A catastrophic injury, such as a traumatic brain injury, spinal cord injury or an amputation, may also cause significant future care needs.

In certain cases, an injured party can hold a legal case against an at-fault party, but an accident benefits claim is different from a tort (civil) claim. It can also take a long time to get the litigation process in an at-fault case resolved. However, while the claim for personal injury is pending, the accident benefits may be able to access some of the treatment and financial help.

For this reason, it is not enough to simply look at the premium difference to make the decision on removing a benefit. If your car accident suddenly makes it impossible to work, take care of your family, or keep a home, what would you do?

What to Do Before Renewing Your Auto Insurance

Before renewing an Ontario auto insurance policy, review the accident benefits and limits shown on the policy rather than focusing solely on the premium. Existing coverage may continue at renewal, but policyholders can agree to change or decline optional benefits, making it important to understand the financial protection being kept or removed.

Consider taking these steps:

1. Review your current accident benefits. Identify which benefits are included now and the applicable limits.
2. Confirm what will continue at renewal. Ask the insurer or broker to identify any coverage that is becoming optional and whether the existing benefit will remain on your policy.
3. Compare insurance quotes carefully. Two policies with different premiums may also provide different levels of accident benefits coverage.
4. Review your income protection. Determine whether you have workplace disability insurance, paid sick leave, private insurance, or sufficient savings if you are unable to work.
5. Consider your family responsibilities. Caregiver, dependant care, housekeeping, and home maintenance coverage may be particularly important for households with children or other dependants.
6. Confirm who is listed on your policy. Optional benefits have narrower eligibility rules after July 1, 2026, making it important to ensure regular drivers are properly identified.
7. Review medical and rehabilitation limits. Mandatory coverage remains in place, but increased limits can be purchased for additional protection.
8. Ask questions before declining a benefit. Request a clear explanation of what the benefit provides, how much it costs, and what would happen if you were seriously injured without it.

FSRA recommends that consumers assess their existing employer benefits, other insurance coverage and their personal situation when determining their optional accident benefits coverage.

Drivers must also carry copies of policy documents and any written decision with respect to optional benefits. Such records may be pertinent if a future disagreement occurs regarding coverage purchased.

Speak to a Car Accident Lawyer

A car accident lawyer can look at your insurance policy and determine which accident benefits might be available to you and how changes in the 2026 Ontario Auto Insurance Plan will impact your claim.

Some accidents may require mandatory medical and rehabilitation benefits, and depending on the situation, optional accident benefits may be required, catastrophic impairment may be involved, there may be a dispute with the insurance company or a claim against an at fault driver.

Grillo Law’s car accident lawyers have over 40 years’ experience in providing services to individuals who have been injured as a result of a motor vehicle accident in Ontario.

A lawyer can help with:

• Reviewing your automobile insurance policy and available accident benefits
• Determining which insurer should respond to the claim
• Identifying optional benefits that apply to you
• Preparing and submitting accident benefits documentation
• Gathering medical evidence
• Addressing denied treatment or benefit claims
• Assessing catastrophic impairment where applicable
• Documenting lost income and future financial losses
• Communicating with insurance companies
• Pursuing a claim against an at-fault party where appropriate

Being able to understand the exact wording and coverage of an Auto Insurance Policy is important with the 2026 reforms. If you’ve already had an injury, don’t presume a benefit is available or not just because of general awareness about the new rules. Coverage may vary based on the date of the accident, the policy, optional coverage benefits, who is covered under the policy and the circumstances of the collision.

The accident benefits/car insurance compensation that may be available after a motor vehicle accident in Ontario may apply to your case if you or your family member has been injured. Contact Grillo Law today and arrange a free consultation to discuss the accident benefits and compensation you may be entitled to. Grillo Law advises so that it does not take legal fee unless the case is won or settled.