After a car accident in Ontario, many injured people expect the no-fault benefits system to carry most of the load. Starting in 2026, that is less true than it used to be. With income loss and several other benefits no longer automatic, more accident victims will need to pursue the at-fault driver in court to be fully compensated.

This post explains Ontario’s two-track injury system, how the 2026 reforms shift more responsibility onto the tort claim, and the key rules (the threshold, the statutory deductible, and the limitation period) that shape those claims. It is general information, not advice about your case.

Key takeaways

  • Ontario auto injury claims run on two tracks: no-fault accident benefits and a tort claim against the at-fault driver.
  • As of July 1, 2026, most accident benefits (including income replacement) became optional under O. Reg. 383/24, so more losses may have to be recovered in court.
  • Pain-and-suffering claims must meet a permanent and serious impairment threshold.
  • In 2026 the general-damages deductible is $47,913.01, with a $159,708.71 threshold above which no deductible applies; the Family Law Act deductible is $23,956.52. These are indexed yearly.
  • A two-year limitation period generally applies to injury lawsuits, so early advice helps.

Ontario’s two tracks: accident benefits and tort

Ontario handles auto injury claims through two systems that can run at the same time:

  • Statutory accident benefits (no-fault). Paid by your own insurer regardless of who was at fault. These benefits are meant to help you recover: medical and rehabilitation treatment, attendant care, and (in the past, automatically) things like income replacement.
  • The tort claim. A lawsuit against the at-fault driver for damages the benefits system does not fully cover, such as pain and suffering and income loss beyond what benefits pay.

For many years, a large share of an injured person’s income loss and other everyday losses was handled inside the accident-benefits track. The 2026 reforms change that balance.

What the 2026 reforms changed

Effective July 1, 2026, under Ontario Regulation 383/24, the standard auto policy changed so that most statutory accident benefits became optional. Medical, rehabilitation, and attendant care benefits stay mandatory. A longer list, including income replacement, non-earner, caregiver, housekeeping and home maintenance, and others, is now optional and must be purchased or opted into in writing.

The choice is opt-in, not opt-out. Renewing policies keep the pre-July-2026 coverage until the consumer agrees in writing to reduce it. The practical result is that some drivers will carry less accident-benefit coverage than the old standard policy provided.

Why this pushes losses into the tort claim

When income replacement and similar benefits are no longer automatic in the accident-benefits track, those losses do not simply disappear. If someone else caused the crash, the injured person can seek to recover them through the tort claim against the at-fault driver.

Because more heads of loss now have to travel that route, commentators expect more of these lawsuits. In short, the reform shifts uncompensated losses from a no-fault benefit toward a fault-based claim in court.

The rules that shape a tort claim

A tort claim for auto injuries in Ontario is subject to some important limits. Three of them come up in almost every case.

The tort threshold

To recover damages for pain and suffering after an auto accident, an injured person generally must meet a legal threshold: broadly, a permanent and serious impairment of an important physical, mental, or psychological function (or death). This threshold is a gatekeeper for pain-and-suffering damages. Whether an injury meets it is a legal question decided on the medical and other evidence.

The statutory deductible

Even when the threshold is met, Ontario applies a statutory deductible to many pain-and-suffering awards. The deductible is a fixed amount subtracted from the award, and it is indexed each year. As of 2026 (indexed by 2.4%, effective January 1, 2026), the figures are:

2026 figure Amount
Pain-and-suffering (general damages) deductible $47,913.01
Monetary threshold (award at or below this has the deductible applied; above it, no deductible) $159,708.71
Family Law Act claims deductible $23,956.52

Here is how it works. If a general-damages award is at or below the monetary threshold, the deductible is subtracted from it. If the award is above the threshold, it is paid in full with no deductible. So a jury award of, say, an amount below the threshold would be reduced by the deductible, while a larger award above the threshold would not be. These amounts are indexed annually, so confirm the current figures with the Financial Services Regulatory Authority of Ontario (FSRA) before relying on them.

The limitation period

Ontario generally sets a two-year limitation period to start a lawsuit for personal injury. Missing that deadline can end a claim before it is heard. Accident-benefit claims have their own, separate and often shorter, deadlines.

Because the clock can start running from the date of the accident (and sometimes from when you knew or ought to have known you had a claim), it is generally wise to get advice well before the two years are up.

What a tort claim involves

A tort claim is more involved than an accident-benefit application. In general terms, it can include:

  1. Investigation and evidence. Gathering the police report, medical records, witness information, and proof of income loss.
  2. Starting the lawsuit. Issuing a claim within the limitation period against the at-fault driver (and sometimes others).
  3. Documentary and oral discovery. Exchanging documents and answering questions under oath about the accident and your injuries.
  4. Medical evidence. Assessments that address the threshold and the extent of your injuries.
  5. Resolution. Many claims settle; some proceed to trial, where a judge or jury decides.

Juries in these cases are generally not told about the statutory deductible when they decide an award, even though it can reduce what is ultimately paid. That is one reason the numbers above matter so much behind the scenes.

Frequently asked questions

Do the 2026 changes mean I have to sue after every accident?

Not necessarily. Whether a lawsuit makes sense depends on your injuries, your coverage, and who was at fault. The point is that, with several benefits now optional, losses like income replacement may no longer be covered automatically through accident benefits. Where someone else caused the crash, the tort claim becomes a more important route to recovering those losses.

Will the deductible always be taken off my award?

Not always. The statutory deductible applies to a general-damages award that is at or below the monetary threshold ($159,708.71 in 2026). If the award is above that threshold, it is paid in full with no deductible. These amounts change each year, so confirm the current figures with FSRA.

How long do I have to start a claim?

Ontario generally applies a two-year limitation period to personal injury lawsuits, though when the clock starts can depend on the facts. Accident-benefit claims have their own separate deadlines that are often shorter. Because these deadlines can be strict, it is generally best to get advice early rather than close to the limit.

Can I pursue accident benefits and a tort claim at the same time?

Yes. The two tracks are designed to work together. You can apply for the accident benefits available under your policy while also pursuing a tort claim against the at-fault driver. What each track covers, and how they interact, depends on your coverage and circumstances.

The 2026 reforms make it more likely that recovering your full losses will involve a claim against the at-fault driver, on top of any benefits you can access. If you have been injured in an Ontario car accident, Azimi Law can walk you through how the two tracks apply to your situation. We cannot promise a particular result, but we can help you understand your options. Please feel free to get in touch.