Ontario auto insurance accident benefits changed on July 1, 2026. If you hold a policy in Ontario, this affects you. Some benefits are still automatic. Others now require you to opt in.
This post breaks down the change in plain language. It’s based on official guidance from the Financial Services Regulatory Authority of Ontario (FSRA). You’ll find both source links at the end.
What Are Statutory Accident Benefits?
Statutory Accident Benefits, or SABs, are built into every Ontario auto insurance policy. They kick in if you’re injured in an accident. It doesn’t matter who caused the crash.
These benefits typically cover medical treatment, rehabilitation, and income support if you can’t work because of your injuries.
What Changed on July 1, 2026
Before July 2026, most accident benefits came included automatically. Only a few were optional add-ons. That changed.
Now, a small core group of benefits stays mandatory. A much larger group became optional. You choose whether to add them.
Why the change? FSRA says the goal is more choice. Drivers can pick coverage that fits their needs and budget, instead of paying for benefits they may already have through work.
Benefits That Are Still Mandatory
Three benefits remain automatic on every Ontario auto insurance policy, no matter who caused the accident:
Standard medical benefits. These cover treatment costs like doctor visits after an accident.
Rehabilitation benefits. This includes therapy and recovery care, such as physiotherapy.
Attendant care benefits. This covers help with daily tasks, like bathing and dressing, if your injuries require it.
These three are considered essential. The optionality changes don’t touch them.
Benefits That Are Now Optional
These benefits used to come standard. As of July 1, 2026, you now choose whether to include them:
Income replacement benefit. Helps replace lost income if you can’t work after an accident.
Non-earner benefit. For students or those unemployed at the time of the accident. It provides support if the crash disrupts your daily life.
Caregiver benefits. Covers the cost of alternate care if you can no longer care for a dependant, like a child or aging parent.
Lost educational expenses. Covers costs if the accident keeps you from attending school.
Expenses of visitors. Covers reasonable costs for family visiting you during recovery.
Housekeeping and home maintenance. Covers tasks you can’t perform yourself because of your injuries.
Damage to personal items. Covers repair or replacement of items like eyewear or hearing aids damaged in the crash.
Death benefits. Compensates certain family members if someone dies because of the accident.
Funeral benefits. Helps cover funeral costs after a fatal accident.
That’s nine benefits shifting from automatic to optional. This is the biggest part of the change, so it’s worth reading your policy closely.
Benefits That Were Already Optional
A few benefits were optional before, and they still are:
Supplementary medical, rehabilitation, and attendant care benefits. These raise your coverage above the standard limits.
Dependant care benefits. Covers extra costs of caring for a dependant, like a child, spouse, or aging parent.
Indexation benefits. Adjusts certain payments and limits each year for cost of living.
One Detail Easy to Miss: Who’s Covered
Here’s something many drivers won’t notice right away. Starting July 1, 2026, the group of people covered under your optional accident benefits is changing. This happens regardless of your renewal date.
Going forward, optional benefits only apply to:
The named insured on the policy.
The named insured’s spouse.
Dependants of the named insured or their spouse.
People specifically listed as drivers on the policy.
That’s a narrower list than some policies covered before. If your policy currently extends benefits to other people, check how this affects you.
What Happens to Your Existing Policy
If you already have a policy, nothing changes automatically. Your policy renews with the same coverage and limits, unless you agree in writing with your insurer to make changes.
There’s one exception: the “who’s covered” rule above applies right away, on July 1, 2026, no matter when your policy renews.
If you’re buying a new policy, or renewing on or after July 1, 2026, you may actively choose your optional benefits at that point.
Why You Should Still Review Your Policy
Nothing about this change is urgent or alarming. But because so many benefits shifted from automatic to optional, it’s possible to end up with less coverage than you expect, especially if a renewal goes through without a second look.
Before adding anything, check what you might already have. Workplace benefits, private health plans, and existing life or disability insurance sometimes cover similar ground.
What to Do Next
FSRA recommends four simple steps:
Review your current policy. Know what you have today.
Check for overlap. See if work or private benefits already cover you.
Think about your situation. Consider who else relies on your coverage.
Talk to your broker or insurer. Ask what makes sense for your specific needs.
Coverage limits and pricing for optional benefits vary by insurer, so this is worth a real conversation, not just a guess.
Sources
This post is based on official information from the Financial Services Regulatory Authority of Ontario (FSRA):
FSRA Fact Sheet: 2026 Accident Benefits Reforms https://www.fsrao.ca/media/29826/download
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
This summary is for general information only. For complete details, refer to Ontario Regulation 34/10 (the Statutory Accident Benefits Schedule), or speak with a licensed insurance professional.
