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:
Investigation and evidence. Gathering the police report, medical records, witness information, and proof of income loss.
Starting the lawsuit. Issuing a claim within the limitation period against the at-fault driver (and sometimes others).
Documentary and oral discovery. Exchanging documents and answering questions under oath about the accident and your injuries.
Medical evidence. Assessments that address the threshold and the extent of your injuries.
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.
Thinking about a claim after a crash?
The 2026 reforms push more losses onto the tort side. Get a clear, plain-language read on how the two tracks apply to you.
This article is general legal information, not legal advice, and does not create a lawyer–client relationship. Laws, benefit amounts, deadlines, and government policies change and depend on your specific circumstances. Please confirm current details with the official source or contact Azimi Law for advice about your situation.
Ontario’s 2026 auto insurance reforms gave drivers something they did not have before: a choice about many of the accident benefits that used to come automatically. As of July 1, 2026, most statutory accident benefits are optional, which means you can now buy back coverage you once received by default.
That choice is useful, but it also puts the burden on you to think about which coverages you would want if you were seriously hurt. This guide walks through the optional benefits and who tends to be most exposed without each one, so you can have a better-informed conversation with your broker.
Key takeaways
As of July 1, 2026, most Ontario accident benefits are optional and must be purchased.
Medical, rehabilitation, and attendant care benefits stay mandatory, so you do not need to buy them.
The most valuable optional benefits depend on your life: earners, caregivers, and families are each exposed differently.
Reducing coverage requires your written opt-in — nothing changes automatically until you sign.
Reviewing your coverage at each renewal, with a broker, is generally the safest habit.
Start with what you cannot lose
Before weighing the options, it helps to know the floor. Medical, rehabilitation, and attendant care benefits remain mandatory in every Ontario auto policy. If you are injured, that core coverage is there regardless of the choices you make about the optional benefits. Everything below is about the coverage you now decide to add on top of that base.
Medical, rehabilitation, and attendant care benefits remain mandatory in every Ontario auto policy. If you are injured, that core coverage is there regardless of the choices you make about the optional benefits.
The optional benefits, one by one
Here is a plain-language look at each optional benefit and the kind of person who is often most exposed without it.
Income replacement
This benefit helps replace a portion of income lost because injuries keep you from working. Sole earners, self-employed people, and anyone whose household depends heavily on their paycheque are usually the most exposed if they skip it. Without it, lost income after a serious injury may have to be pursued through a lawsuit against the at-fault driver instead.
Non-earner benefit
The non-earner benefit is generally aimed at people who were not employed at the time of the crash but suffer a serious injury — for example, some students or those between jobs. If income replacement does not fit your situation, this is the benefit to ask about.
Caregiver
This benefit helps when an injured person can no longer care for dependants they were looking after. Parents and others who are the primary caregiver in a household are the most exposed without it.
Housekeeping and home maintenance
This covers help with household tasks you can no longer do because of your injuries. Anyone who runs their own household, and especially those without family nearby to step in, may feel the gap if they go without it.
Lost educational expenses
This benefit can help recover tuition and related costs when an injury interrupts studies. Students, or parents paying for a child’s education, are the ones most likely to want it.
Visitor expenses
This helps cover costs for family and close friends visiting an injured person during recovery. It tends to matter most when a serious injury leads to a long hospital stay.
Damage to personal items
This covers items damaged in the crash, such as clothing and eyewear. The dollar amounts are usually modest, but for people who rely on expensive prescription glasses or similar items, it can still be worth considering.
Death and funeral benefits
These benefits provide support to family in the event of a fatal crash. Anyone with a spouse or dependants who would face financial strain after a death is the most exposed without this coverage.
Dependant care
This benefit can help with the cost of caring for dependants when an injured person cannot. Families with young children or other dependants are usually the ones who feel its absence most.
Who should consider each optional benefit
Optional benefit
Who is most exposed without it
Income replacement
Sole earners and the self-employed
Non-earner benefit
Students and those not currently working
Caregiver
Primary caregivers of dependants
Housekeeping and home maintenance
Those who run a household without nearby help
Lost educational expenses
Students and parents paying tuition
Visitor expenses
Anyone facing a possible long hospital stay
Damage to personal items
People who rely on costly eyewear or similar items
Death and funeral benefits
Those with a spouse or dependants
Dependant care
Families with children or other dependants
The written opt-in: nothing changes until you sign
An important protection is built into the reform. The system is opt-in, not opt-out. If your policy renews after July 1, 2026, you keep your pre-July-2026 coverage until you agree in writing to reduce it. That means the decision to trim benefits in exchange for a lower premium is yours to make deliberately, not something an insurer does on its own.
Treat any form that reduces coverage as a serious decision. Before you sign, make sure you understand which benefits you would be giving up and picture how each one might matter if you were badly hurt.
Review your coverage at renewal
Because these are now choices rather than defaults, it is generally wise to revisit your coverage each time your policy comes up for renewal. Your life changes — a new job, a new child, a mortgage, aging parents — and the benefits that matter to you can change with it. A broker can walk you through your options and how they fit your circumstances. This article does not quote premium prices, and costs vary, so a broker is the right person to talk about what each option would mean for your budget.
Know your rights if you are later injured
Even with the best coverage choices, disputes can arise about what you are owed after a crash. Knowing that medical, rehabilitation, and attendant care remain mandatory — and understanding which optional benefits you actually bought — puts you in a much stronger position if you ever need to make a claim. If a benefit is denied, there are avenues to challenge that decision, and getting advice early generally helps.
Frequently asked questions
Can I still get income replacement after 2026?
Yes, but it is now an optional benefit you generally have to purchase rather than one that comes automatically. If your household depends on your income, it is worth discussing with your broker.
What happens if I do nothing at renewal?
Because the reform is opt-in, doing nothing generally means you keep your pre-July-2026 coverage. Your coverage should not be reduced unless you agree in writing to reduce it.
How much do the optional benefits cost?
Prices vary by insurer and by your circumstances, and this article does not quote premiums. Your broker can give you accurate figures for your own policy.
Which optional benefit is the most important?
There is no single answer, because it depends on your life. An earner may prioritize income replacement, while a parent may focus on caregiver and dependant care. The point is to match the benefits to your own situation.
Where can I confirm the current rules?
The reforms flow from Ontario’s 2026 auto insurance changes, but details and amounts can be updated. Confirm current information with the official source, FSRA, or speak with a broker or lawyer.
If you would like help understanding your rights after an injury, or you are unsure how the 2026 changes affect the coverage you already have, Azimi Law is happy to talk it through. Reach out for general guidance about your situation — no pressure and no promises, just a straightforward conversation.
Not sure which benefits you should buy?
The 2026 accident-benefit changes put the choice in your hands. Get a clear, plain-language read on your options.
This article is general legal information, not legal advice, and does not create a lawyer–client relationship. Laws, benefit amounts, deadlines, and government policies change and depend on your specific circumstances. Please confirm current details with the official source or contact Azimi Law for advice about your situation.
If you drive in Ontario, the accident benefits you count on after a crash are changing. As of July 1, 2026, most of the benefits that used to come automatically with every auto policy are now optional. That means some coverage you once had by default is only there if you buy it.
This guide explains what changed under Ontario Regulation 383/24, which benefits stay mandatory, which are now optional, and why the shift matters if you are injured. It is general information to help you understand the reform and ask your broker the right questions.
This reform affects new and renewing policies from July 1, 2026 onward. If you walk, cycle, or ride as a passenger, your access to certain benefits may have narrowed — see “Who can access the optional benefits” below.
Key takeaways
As of July 1, 2026, most statutory accident benefits in Ontario become optional under O. Reg. 383/24.
Medical, rehabilitation, and attendant care benefits remain mandatory and are always included.
Income replacement, caregiver, housekeeping, and several other benefits must now be purchased.
The change is opt-in, not opt-out: renewing policies keep the old coverage until you agree in writing to reduce it.
With fewer benefits automatic, more losses may need to be pursued through a tort claim against the at-fault driver.
What changed on July 1, 2026
Ontario’s standard auto insurance policy has long bundled a set of statutory accident benefits, known as SABS. These are the no-fault benefits you can claim after a collision regardless of who caused it. The amending regulation, O. Reg. 383/24, restructures that package so that most of those benefits are no longer automatic. Instead, they are offered as optional coverage you can choose to buy.
The reform took effect July 1, 2026. From that date, optionality is available to all consumers regardless of when their policy renews. The core idea is that a smaller mandatory set stays in place, and the rest becomes a menu of add-ons.
Benefits that stay mandatory
Three benefits remain part of every Ontario auto policy and are always included:
Medical benefits — coverage for reasonable and necessary medical treatment related to the accident.
Rehabilitation benefits — coverage for care aimed at restoring function and easing the effects of injury.
Attendant care benefits — coverage for an aide to help with personal care when injuries require it.
If you are seriously hurt, these three are the backbone of your no-fault coverage, and you do not have to buy them separately.
Benefits that are now optional
The following benefits are no longer automatic. To have them, you generally have to purchase them, or opt into them in writing:
Income replacement
Non-earner benefit
Caregiver
Housekeeping and home maintenance
Lost educational expenses
Visitor expenses
Damage to personal items (such as clothing and eyewear)
Death and funeral benefits
Dependant care
Many of these matter most when someone cannot work, cannot care for their family, or dies as a result of a crash. Because they are now optional, a driver who does not buy them may find those cushions missing at the worst possible time.
Mandatory versus optional at a glance
Benefit
Status as of July 1, 2026
Medical
Mandatory (always included)
Rehabilitation
Mandatory (always included)
Attendant care
Mandatory (always included)
Income replacement
Optional (must be purchased)
Non-earner
Optional (must be purchased)
Caregiver
Optional (must be purchased)
Housekeeping and home maintenance
Optional (must be purchased)
Lost educational expenses
Optional (must be purchased)
Visitor expenses
Optional (must be purchased)
Damage to personal items
Optional (must be purchased)
Death and funeral benefits
Optional (must be purchased)
Dependant care
Optional (must be purchased)
Opt-in, not opt-out: why your renewal matters
One of the most important features of the reform is how the choice is structured. This is an opt-in system, not an opt-out one. If your policy renews after July 1, 2026, you generally keep your pre-July-2026 coverage until you agree in writing to reduce it. In other words, no insurer should be quietly stripping benefits from your policy without your written agreement.
Read your renewal paperwork closely. If you sign a form to reduce coverage in exchange for a lower premium, you may be giving up protection you would want after a serious injury. Ask your broker to explain, in plain terms, exactly what you would keep and what you would give up.
Who can access the optional benefits
Eligibility for the optional benefits is also narrower than before. Generally, the optional benefits are available to the named insured, their spouse, their dependants, and listed drivers. As a result, pedestrians, cyclists, and some passengers who previously had access to certain benefits may no longer qualify. If you often walk or cycle, this is an important gap to understand, because you may not be covered under someone else’s optional benefits the way you might expect.
The shift toward tort claims
Ontario’s injury system has two tracks: no-fault accident benefits from your own insurer, and a tort claim against the driver who caused the crash. When benefits like income replacement are no longer automatic, more of those losses may have to be recovered through the tort side instead.
In practice, that can mean more injured people needing to sue the at-fault driver to be made whole for lost income and similar losses. Commentators expect more lawsuits as a result. Keep in mind that tort awards for pain and suffering are also reduced by a statutory deductible that is indexed each year, so the tort track has its own rules and limits. If you want the current deductible figure, you can confirm it with FSRA.
Frequently asked questions
Do I still have medical coverage after a crash in 2026?
Yes. Medical, rehabilitation, and attendant care benefits remain mandatory and are always included in an Ontario auto policy, so this core coverage is not something you have to buy separately.
Will my benefits automatically be cut at renewal?
Generally no. The reform is opt-in, not opt-out. A renewing policy keeps its pre-July-2026 coverage until you agree in writing to reduce it. Read any renewal forms closely before signing anything that lowers your coverage.
I was hurt as a pedestrian. Am I still covered?
It depends. Optional benefits are generally limited to the named insured, spouse, dependants, and listed drivers, so some pedestrians and cyclists may no longer qualify for benefits they once could access. This is a good situation to get individual advice about.
Should I buy the optional benefits?
That is a personal decision based on your income, your family, and your budget, and this article cannot tell you what to choose. Speaking with your broker about your own situation is generally the best starting point.
Have these figures been finalized?
The July 1, 2026 changes come from O. Reg. 383/24, but benefit amounts and thresholds are indexed and can change. Always confirm current details with the official source, FSRA, before relying on a specific number.
If you have been injured in a crash and are unsure which benefits apply to you, or you are trying to make sense of your coverage after the 2026 changes, Azimi Law would be glad to talk through your situation. Reach out for general guidance about your options — there is no pressure and no promises, just a plain-language conversation about where you stand.
Not sure what your policy still covers?
The 2026 accident-benefit changes are significant. Get a clear, plain-language read on your options after an injury.
This article is general legal information, not legal advice, and does not create a lawyer–client relationship. Laws, benefit amounts, deadlines, and government policies change and depend on your specific circumstances. Please confirm current details with the official source or contact Azimi Law for advice about your situation.