If you or someone in your family drives in Ontario, mark July 1, 2026 in your calendar. Why? Because the way your car insurance pays for accident benefits is changing significantly.
Many benefits that are currently automatic may no longer be included. Instead, Ontario is moving to a pick-and-pay model, giving you more control to tailor your coverage and potentially lower premiums. However, declining optional benefits could leave you or your family with limited support in the event of an accident.
What Your Policy Covers Today
Currently, Ontario auto insurance policies include a standard bundle of benefits under the Statutory Accident Benefits (SABs), including:
- Medical, rehabilitation and attendant care benefits – doctor visits, treatments, physiotherapy and help with daily living
- Income replacement benefits (IRB) – compensation for lost income if you cannot work
- Caregiver benefits – coverage for expenses if you can no longer provide care for dependents, such as children or aging parents
- Non-earner benefits (NEB) – financial support for students or others without income while recovering
- Lost educational expenses – assistance if an accident prevents you from attending school or other education programs
- Visitors’ expenses – reasonable and necessary costs for visitors, such as a spouse, parents or sibling
- Damage to personal items – repair or replacement of personal items (clothing, prescription eyewear, hearing aids, etc.) damaged in an accident
- Death and funeral benefits – between $10,000-25,000 for eligible family members and up to $6,000 for funeral expenses
What Changes After July 1, 2026
After July 1, 2026, only medical, rehabilitation and attendant care will remain mandatory. All other benefits will be optional, meaning you must actively choose and pay for them to be covered.
Also, eligibility for certain benefits will be limited to:
- The named insured on the policy
- Their spouse and dependants / spouse’s dependants
- Drivers specifically listed on the policy
This means that pedestrians, cyclists or passengers who previously had access to certain benefits may no longer be covered unless optional coverages are purchased.
Positive Changes
One improvement to the system is that auto insurers will now become the first payer for mandatory medical and rehabilitation benefits. Previously, injured parties often had to exhaust workplace or private health benefits before accessing auto insurance. Under the new system, auto insurers will pay benefit up front, streamlining the process and reducing delays.
How the Changes Will Apply
The 2026 changes will apply whether you are renewing your existing policy or purchasing a new policy.
- Existing policies: Your first renewal after July 1, 2026 will be under the new system. Your insurer will provide a list of optional benefits and you must actively select which ones to keep and pay for.
- New policies: Policies purchased after July 1, 2026 will only include mandatory benefits unless optional ones are explicitly chosen.
Essentially, the responsibility shifts to you, the consumer, to understand your coverage and make informed choices.
Steps to Take Now
To protect yourself and your family, take the following steps:
- Review your current coverage – understand which benefits you have in your auto insurance policy today
- Review other coverage – check your workplace, private benefits plan or life and health insurance policies for overlapping benefits
- Speak to your insurer, agent or broker – learn more about your options and carefully consider which optional benefits to select.
Making informed choices could be the difference between financial security and significant hardship in the event of an accident.
Key Takeaway
The choices you make before an accident will determine the protection available to you and your family afterward. Don’t leave it to chance – review your policy, understand your options and ensure your coverage meets your needs.
More information? We’re here to help – injury@wardlegal.ca This WARDS LAWYERS PC publication is for general information only. It is not legal advice, nor is it intended to be. Specific or more information may be necessary before advice could be provided for your particular circumstances.