As of July 1, 2026, Ontario auto insurance moves to a more flexible, choice-driven system*. While some foundational medical and rehab support remain strictly mandatory, many vital income and lifestyle protections are now optional—meaning you must actively choose and pay for them to be covered. Here’s what you need to know when purchasing a new policy, or when
it’s time to renew.
We always advise the broadest available accident benefit (AB) protection but understand that certain circumstances dictate that you may require something other than that recommendation. If you have any questions regarding the information please email or call us to clarify.
What you need to do
If you’re an existing customer: Your policy will renew automatically with your current coverage and limits, unless you agree with your insurer/broker in writing to decline the benefits or to make the changes to them. You can review and update your coverage as needed. Before making changes, check if your personal or work benefits already provide similar coverage.
If you’re a new customer: You can choose which optional accident benefits you would like to purchase. Review the coverage definitions thoroughly, check if your personal or work benefits already provide similar coverage, and ask us for clarification on any of the quoted benefits. Based on your needs, you may want to add optional benefits to your policy.
Payment order changes
As of July 1, 2026, your auto insurance will be the first payor for medical or rehabilitation claims (except medication expenses). If you’re injured in an automobile accident, auto accident benefits will cover your medical or rehabilitation expenses first, allowing you to save your workplace benefits for other life events.
Who is covered under Ontario’s Statutory Accident Benefits Schedule (SABS)?
As of July 1, 2026, the newly optional benefits under your auto policy will only apply to:
- The named insured
- The spouse of the named insured
- Dependants of the named insured and of the named insured’s spouse
- Persons specified in the policy as drivers of the automobile
This means that some people, such as pedestrians, cyclists and certain passengers who may have been previoulsy covered, may no longer be eligible for accident benefits.
What’s staying the same?
The following benefits are automatically included in every policy and remain the same as before:
| Liability | Covers you for things like legal fees and cost of settling a claim if you cause an accident with your vehicle |
| Direct Compensation | Covers you if your vehicle and contents are damaged in an accident that is the fault of another driver |
| Uninsured Motorist | Covers you for damage and injuries if you are in an accident with an uninsured or hit-and-run driver who is at fault |
| 44 Family Protection | Covers you for the difference between the at fault driver’s liability limit and your own liability limit if someone with less liability coverage than you injures you in an accident |
| Medical & Rehabilitation | Covers medical treatments, therapy, and rehabilitation required after an injury |
| Attendant Care | Pays for assistance provided by an aide or nurse |
| Cost of Examinations | Covers the cost of required medical or rehabilitation assessments |
The following benefits are optional but remain the same as before:
| All Perils | Collision + comprehensive + covers you for theft by a person who lives in your household or an employee |
| Collision | Covers you for the the cost of repairs/replacement of your vehicle if you are in an accident that is your fault |
| Comprehensive | Covers you for fire, theft, lightning, vandalism, and flying objects like stone chips or glass repair |
| 20 Loss of Use | Covers you for a rental vehicle, public transit, etc. if your vehicle is stolen, damage or destroyed |
| 27 Liability for Damage | Covers you for damage to a rental vehicle |
| 43 Limited Waiver | Covers you for the loss of value or depreciation of a new car if it is damaged beyond repair, certain conditions apply |
| 35 Roadside Coverage | Usually gives you $50 per emergency service (usually towing) up to 4 times per year |
| Accident Waiver | Coverage that forgives your first at fault accident and will not affect your rate, certain conditions apply |
| Minor Conviction Protection | This protects you from a premium increase on renewal due to a minor conviction like speeding or failing to signal. It only applies to the first conviction and any subsequent convictions will be rated |
What’s changing or becoming optional?
All other Statutory Accident Benefits (AB) can be added, removed, or customized to fit your budget and personal circumstances. While it may reduce your premium, we DO NOT recommend removing or omitting these options because it could leave you responsible for significant unexpected expenses following an automobile accident.
Financial Protection Benefits:
| Income Replacement | Helps replace lost wages that you or another covered person may lose if you are unable to work due to an auto accident |
| Caregiver Benefits | Helps cover caregiving expenses if you or another covered person is injured in an auto accident and can no longer provide care for a household member who needs care, sush as a child or aged parent |
| Non-Earner Benefits | Provides financial support if you or another covered person is a student or unemployed and an auto accident keeps you or them from leading a normal life |
Peace of Mind Benefits:
| Housekeeping & Home Maintenance | This benefit may provide compensation if you and other covered persons suffer a substantial inability to perform the housekeeping and home maintenance services that you or they normally performed before the accident |
| Death Benefit | Provides financial compensation to the spouse and/or dependents of a covered personal in the even of their death dut to an auto accident |
| Funeral Benefits | Helps cover some funeral costs if you or another covered personal passes away due to an auto accident |
| Lost Educational Expenses | Can help cover the costs you have incurred if an automobile accident keeps you or another covered person from completing school or an education program |
| Expenses of Visitors | Helps cover reasonable and necessary expenses of visitors, such as a sibling or parents, if you or another covered person is injured in an auto accident |
| Damage to Personal Items | Helps cover the reasonable expenses to repair or replace personal items worn by you or another covered person that were damaged due to an auto accident |
Before declining any optional benefits, consider how an injury could affect your income, family responsibilities, education, or daily living expenses. We are happy to review these coverages with you and help determine what protection makes sense for your situation.
*This guide is intended as a general overview of the July 1, 2026 Ontario Auto Insurance Reform. Coverage Availability and eligibility may vary by insurer and individual circumstances.
