Changes to Accident Benefits Effective July 1, 2026
Beginning July 1, 2026, changes to Ontario’s automobile insurance system will affect the accident benefits included in automobile insurance policies.
Under the new rules, several accident benefits that are currently included automatically will instead become optional coverage.
These changes are intended to provide drivers with greater flexibility when selecting accident benefits coverage while maintaining core protections.
What Are Accident Benefits?
Accident benefits provide financial support if someone is injured in a motor vehicle accident, regardless of who is at fault.
These benefits may help cover medical treatment, rehabilitation, income replacement, and other expenses related to recovery.
Accident Benefits Before July 1, 2026
Prior to July 1, 2026, the following accident benefits are included in all Ontario automobile insurance policies:
• Medical benefits
• Rehabilitation benefits
• Attendant care benefits
• Caregiver benefits
• Housekeeping and home maintenance benefits (catastrophic impairment only)
• Lost educational expenses
• Visitor expenses
• Damage to clothing, glasses, hearing aids, and other personal items
• Death benefits
• Funeral benefits
Accident Benefits Beginning July 1, 2026
Beginning July 1, 2026, Ontario automobile insurance policies will continue to include the following standard accident benefits:
• Medical benefits
• Rehabilitation benefits
• Attendant care benefits
Several benefits that were previously included automatically will instead become optional benefits that may be added to a policy.
Optional accident benefits may include:
• Income replacement benefits
• Non-earner benefits
• Caregiver benefits
• Housekeeping and home maintenance benefits
• Lost educational expenses
• Visitor expenses
• Damage to personal items
• Death benefits
• Funeral benefits
Changes to Certain Optional Benefits
Under the reform, some optional benefits may also be available in different coverage structures or amounts depending on the insurer offering the coverage.
For example, caregiver benefits and housekeeping and home maintenance benefits may be purchased so that they apply to an impairment rather than being limited only to catastrophic impairment.
Coverage availability and limits may vary depending on the insurer and the policy selected.
When These Changes Take Effect
The Ontario auto insurance reform takes effect July 1,2026.
Information regarding these changes will be provided to clients as their automobile insurance policies approach renewal.
Clients will have the opportunity to review available accident benefits and select the coverage that best suits their needs.
Changes to Named Insured Rules
The reform also introduces changes regarding the designation of Named Insureds on an automobile insurance policy.
A Named Insured is the individual who owns and controls the insurance policy and has the authority to make coverage decisions, request changes, and add or remove drivers or vehicles from the policy.
Under the updated rules, insurers may place greater emphasis on ensuring that the primary vehicle owner or principal operator is listed as the Named Insured on the policy.
In some situations, individuals who were previously listed as Named Insureds may instead be listed as drivers if they do not have a direct insurable interest in the vehicle.
For most policyholders, these changes will not affect their day to day coverage. However, insurers may review policy structure at renewal to ensure it reflects the appropriate Named Insured and drivers.
Frequently Asked Questions
Will my coverage automatically change?
For renewing clients, policies will generally renew with existing coverage and limits unless changes are requested and confirmed inwriting.
Do I need to do anything right now?
No action is required at this time. Information regarding the available coverage options will be provided closer to your policy renewal.
Will these changes reduce my premium?
Premiums depend on a number of factors, including the coverages selected and the insurer offering the policy. Optional accident benefits allow drivers to tailor their coverage based on their needs.
Who will optional accident benefits apply to?
Optional accident benefits generally apply to the named insured, the spouse of the named insured, dependants of the named insured or spouse, and drivers listed on the policy.
What should I do if I have questions?
If you have questions about these changes or would like to review your coverage, please contact our office and a member of our team will be pleased to assist.
Additional Information
For more information about Ontario’s auto insurance reform, you may visit the following resources:
Financial Services Regulatory Authority of Ontario (FSRA)
https://www.fsrao.ca
Registered Insurance Brokers of Ontario (RIBO)
https://www.ribo.com/licensee-resources/sabs-changes/
Disclaimer
This page provides a general overview of changes to Ontario automobile accident benefits beginning July 1, 2026. The descriptions of statutory accident benefits are a summary only. Coverage details, eligibility, and available optional benefits may vary depending on the insurer and the policy selected.
Clients should review their coverage with their broker to fully understand the options available to them.
