Changes to Ontario Automobile Accident Benefits on July 1st, 2026

As of July 1, 2026, Ontario is making auto insurance more flexible. Some accident benefits that were previously included in every auto insurance policy will become optional, giving you more choice to select coverage that fits your needs.

What are Statutory Accident Benefits?

Statutory Accident Benefits (SABs) can provide financial support if you are injured in a car accident. These benefits can be 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.

What’s Staying the Same?

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.

What’s Benefits will now be Optional?

Income replacement: Helps replace income you or another covered person may lose because of an auto accident.
Non-earner: If you or another covered person is a student or unemployed and an auto accident keeps you from leading a normal life, this benefit can provide financial support while you recover.
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, such as a child or aging parent, who needs it.
Lost educational expenses: If an auto accident keeps you or another covered person from attending school or an education program, this benefit can help cover the costs you have lost.
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.
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 an auto accident.
Damage to personal items: Helps cover the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids, etc.) damaged in an auto accident.
Death benefits: Compensates some family members if you or another covered person die due to an auto accident.
Funeral benefits: Helps cover some funeral costs if you or another covered person die due to an auto accident.

What Other Changes will come into Effect on July 1st

Who is covered under an auto policy for optional benefits will change on July 1, 2026, regardless of renewal effective date. Under the new regulation, optional benefits under an auto policy will only apply to:
- - The named insured and their spouse and their dependents
  - 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.

Changes to Caregiver & Housekeeping Coverage – Currently, these benefits are only available if you suffer a “catastrophic impairment”. (e.g., paralysis, severe brain injury). As of July 1st, 2026, you now have the option to purchase coverage that applies to “any impairment” which includes both catastrophic and non-catastrophic injuries. Customers will need to consider if they wish to purchase this option once the new regulations come into effect.
Insurers to Become the ‘First Payor” in an Automobile Accident – In most cases, automobile insurers will become the first payor for medical and rehabilitation benefits. Claimants won’t be required to exhaust collateral (employer or private) benefit plans first.

Resources

FSRA Ontario Automobile Reform Accident Benefits (clickable)

Forms and Legislation (clickable)

The descriptions of the statutory accident benefits in this document is a summary only. Not all provisions are detailed in this summary. For full details, refer to the statutory accident benefits in Ontario Regulation 34/10.