Ontario Auto Reform

Statutory Accident Benefits (SABS) provide financial support if you are injured in a car accident. These benefits are available regardless of who caused the accident and can cover things like medical treatment, rehabilitation and income if you can’t work because of your injuries.

Standard medical, rehabilitation and attendant care benefits will continue to be included in all auto insurance policies. These benefits help cover essential recovery support after an accident.

You still have the option to purchase additional or increased benefits and coverages, such as supplementary medical, rehabilitation and attendant care, dependant care and indexation benefits.

The following auto insurance accident benefits will become optional:

• Income replacement: Helps replace income you lose because of an accident.
• Non-earner: If you’re a student or unemployed and an accident keeps you from leading a normal life, this provides financial support while you recover.
• Caregiver benefits: Covers caregiving expenses if you or another covered person is injured and can no longer provide care for a household member such as a child or aging parent who needs it. 
• Lost educational expenses: If a car accident keeps you from attending school or an education program, this benefit helps cover the costs you’ve lost.
• Expenses of visitors: Covers reasonable and necessary expenses of visitors if you or another covered person is injured in an accident.
• Housekeeping and home maintenance: Helps cover costs if you or another covered person is unable to perform the housekeeping and home maintenance tasks normally done before the accident.
• Damage to personal items: Covers the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids, etc.) that were damaged in the accident. 
• Death benefits: Compensates some family members if you or a covered person dies due to an accident.
• Funeral benefits: Helps cover some funeral costs. 

Starting July 1, 2026, 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 covered in the past may no longer be eligible for accident benefits unless they are included in the categories listed above.

Some Ontarians already pay for benefits through their employer or private insurance plans. These reforms eliminate a one-size-fits-all approach, and consumers will no longer have to pay for benefits they may already have elsewhere or do not want to buy. 

Starting July 1, 2026, you can tailor your auto insurance to fit your personal situation. That means you will not have to pay for benefits you do not need, and you can choose to add benefits that provide extra protection for you and your family.

Ontario’s is making changes to auto insurance that provide you with more choice and control over your coverage to fit your needs and budget. If you choose to remove benefits that have now become optional from your existing coverage, it may impact your premium.

Before deciding to remove or add optional benefits, you should take the following steps:

• Review your current coverage (if you are an existing customer)
  Know what benefits you already have today through your auto insurance policy.
• Review your workplace or private benefits plan
  You may already have coverage through your employer, private benefits plan, or life and health insurance providers.
• Review your current coverage (if you are an existing customer)
  Consider which coverage is right for you and whether opting out is practical.
• Speak to your insurer, agent or broker to review your current coverage (if you are an existing customer)
  They can help explain your options in relation to your auto insurance coverage.

Make informed decisions; choose the benefits that best fit your needs and budget.

To learn more about optional benefits, speak with your insurer, agent or broker or download our FAQ for more information.

Yes, if you’re a renewing customer, all accident benefits except medical, rehabilitation, and attendant care will become optional. Your current coverage will automatically continue as is, unless you choose to remove or add optional benefits. You can review and update your coverage based on your needs and budget.

Before speaking with your insurer, agent and broker, you should review your current auto insurance policy to better understand what coverage you currently have and think about your needs. Thoroughly review your workplace and private benefits plans to see what other coverage you may already have.

To help you get started, you can view or download our self-assessment checklist.

Customers who are purchasing auto insurance for the first time or who are starting a new policy on or after July 1, 2026, can choose which optional accident benefits they would like to purchase. Ask your insurer, agent or broker which benefits are included in your quote. You may want to add optional benefits to your policy based on your needs.

Please review your auto insurance policy and contact your insurer, agent or broker to discuss making changes to your optional benefits prior to renewal.

If you are shopping for a new policy on or after July 1, 2026, you may choose which optional accident benefits you’d like to purchase. Ask your insurer, agent or broker which benefits are included in your quote. You may want to add optional benefits to your policy based on your needs.

Speak to your insurer, agent or broker to add the optional accident benefits to your auto insurance policy.

Yes, the changes to accident benefits optionality will impact all drivers and auto insurance policies in Ontario, including personal private passenger, commercial, motorcycle, snowmobile and all-terrain vehicle policies.

You may be covered for certain accident benefits coverage when renting a car. Remember to review your auto insurance policy and the rental contract to understand what you’re covered for.

As of July 1, 2026, optional accident benefits coverage will only apply to the named insured, their spouse, dependants of the named insured and of the named insured’s spouse and listed drivers. Passengers injured in an auto accident will not be covered for optional benefits unless they fall into one of these groups under an auto insurance policy that includes optional benefits. However, standard accident benefits will still apply to all passengers.

Standard accident benefits will still apply to uninsured pedestrians and cyclists. Optional accident benefits coverage will only apply to the named insured, their spouse, dependants of the named insured, the name insured’s spouse, and drivers listed in the policy. Pedestrians and cyclists injured in an auto accident will not be covered for optional benefits unless they fall into one of these groups under an auto insurance policy that includes optional benefits.

There is no impact to ongoing claims, the auto insurance coverage you had at the time of the accident applies to your claim.

If you’re injured in an auto accident, you may have coverage through both your auto insurance and your supplementary health insurance plan. Starting July 1, 2026, Ontario is making changes to ensure that auto insurance will pay first for medical or rehabilitation benefits (except for medication costs) for any injury sustained in an auto accident. This means your auto insurance provider will cover these costs before your workplace or private health plan, helping you preserve those benefits for other life events.