Major Auto-Insurance Reform Takes Effect July 1, 2026

Ontario is overhauling the accident-benefits portion of every auto-insurance policy. Under Ontario Regulation 383/24, amendments to the Insurance Act introduce "optionality" into the Statutory Accident Benefits Schedule (SABS) effective July 1, 2026. In plain terms: benefits that used to be automatically included in every policy are being split into a mandatory core and a menu of optional add-ons.

This page is a general summary of significant and evolving changes. It is not legal or insurance advice, and the details of how the rules apply can depend on your specific policy and the date of your accident. Confirm your coverage with your broker or insurer, and contact us to understand how the reforms affect a claim.

What Stays Mandatory

Three core benefits remain included in every Ontario auto policy:

  • Medical benefits — essential treatment after a collision.
  • Rehabilitation benefits — recovery and rehabilitation services.
  • Attendant care benefits — help with personal care.

These are the benefits the reforms treat as essential recovery support, and they continue to be part of the standard policy.

What Becomes Optional

Most other benefits that used to be automatically included become optional — available to purchase, but no longer part of the standard coverage unless you choose them. These commonly include:

  • Income replacement benefits
  • Non-earner benefits
  • Caregiver benefits
  • Housekeeping and home-maintenance benefits
  • Death and funeral benefits
  • Dependant care and certain other expense benefits
  • Indexation and various supplementary/increased-limit options

You must opt in — in writing. The newly optional benefits generally require you to agree, in writing, to add them. If you do nothing, you may not have them. This "opt-in" structure increases the risk that injured people will find themselves with less coverage than they expected.

Your Policy Renews With Existing Coverage — Unless You Change It

According to the regulator and industry guidance, existing policies are expected to renew automatically with their current coverage and limits unless you agree, in writing, to decline or change benefits. The change in coverage takes effect when you actively make changes — so review any renewal carefully before agreeing to reduce anything.

The Biggest Risk: Pedestrians, Cyclists, and Certain Passengers

Perhaps the most important consequence is about who is covered for the newly optional benefits. Those benefits generally apply only to the named insured, their spouse, and their dependants. Today, a pedestrian or cyclist struck by a car — or certain passengers — can often claim accident benefits through the involved vehicle's insurer even without their own policy. After July 1, 2026, some of these injured people may no longer be eligible for the newly optional benefits.

If you do not own a vehicle but walk, cycle, or ride as a passenger, this change may significantly affect what benefits are available to you after a collision. Carrying your own optional coverage — and not reducing limits at renewal — is one way many advisors suggest protecting yourself.

Other Notable Changes

  • SABS becomes the "first payer." For accident-related injuries, your auto policy's medical, rehabilitation, and attendant-care benefits are intended to respond before employer group benefits or private health plans. It is worth coordinating with your extended-health provider to understand how the plans interact.
  • Caregiver and housekeeping/home-maintenance benefits are being offered on a non-catastrophic-impairment basis as well, expanding the options available to purchase.
  • The definitions of "impairment" and "catastrophic impairment" are not changed by the July 1, 2026 reforms.

What You Should Do

  • Review your policy and any renewal carefully — do not reduce optional benefits without understanding the consequences.
  • Consider opting in to optional coverage, especially income replacement and caregiver/housekeeping benefits.
  • If you walk, cycle, or rely on others' vehicles, ask how you are protected after these changes.
  • If you are injured, call us — the rules that apply depend on your accident date and the policies involved.

Frequently Asked Questions

What exactly changes on July 1, 2026?
Under Ontario Regulation 383/24, the accident-benefits section of every auto policy is restructured. Medical, rehabilitation, and attendant-care benefits remain mandatory, while most other benefits — such as income replacement, non-earner, caregiver, housekeeping, and death and funeral benefits — become optional add-ons you must choose. This is a general summary; confirm specifics with your insurer.
Will my coverage automatically drop on July 1, 2026?
Industry and regulatory guidance indicates existing policies renew with their current coverage and limits unless you agree in writing to change or decline benefits. The practical risk is at renewal — review it carefully and do not reduce coverage without understanding the consequences.
I don't own a car but I walk and cycle. How does this affect me?
Potentially significantly. The newly optional benefits generally apply only to the named insured, their spouse, and dependants. Some pedestrians, cyclists, and certain passengers who could previously claim through the involved vehicle's insurer may no longer be eligible for those optional benefits after July 1, 2026. We can help you understand your options.
Are the rules for catastrophic injuries changing too?
The definitions of 'impairment' and 'catastrophic impairment' are not changed by the July 1, 2026 reforms. The core medical, rehabilitation, and attendant-care benefits also remain mandatory. The main change is the shift of many other benefits to an optional, opt-in basis.
My accident happened before July 2026 — which rules apply?
Generally, the rules and policy in force at the time of your accident govern your claim, but the interaction can be complex. This page is a summary and not advice — contact us with your accident date and we will confirm how the rules apply to your situation.