Your Rights After a Car Accident in Ontario

Most people who are involved in a motor vehicle accident in Ontario know they can make an insurance claim. Far fewer understand that they likely have two separate legal entitlements running at the same time — each with its own rules, timelines, and financial implications. Missing either one, or managing them in isolation, often results in leaving significant compensation on the table.

This page was written to change that. In plain language, it explains the no-fault accident benefits system that pays for your medical care and lost income, the tort claim that can compensate you for pain, suffering, and losses beyond what benefits cover, and the major reforms coming into effect July 1, 2026 that will change what is automatically included in every Ontario auto policy.

Whether you have just been injured, are reviewing your coverage before renewal, or simply want to understand what Ontario law provides, this page gives you a clear, honest picture. The law in Ontario is genuinely protective of injured people — knowing how to use it makes all the difference.

Chapter 01 Two Legal Claims, One Accident

Ontario runs a hybrid auto insurance system. Every person injured in a motor vehicle collision — driver, passenger, pedestrian, or cyclist — is funnelled into two parallel processes that must be managed together. Understanding the difference is the single most important step in protecting your compensation.

Who Is Covered

Eligibility for both tracks is broader than most people realize. It is not limited to the driver who was struck. Ontario law extends accident benefits and tort rights to:

• Drivers and passengers in any vehicle involved in the collision, regardless of who was at fault. See our car accident claims page.
• Pedestrians struck by a vehicle — including on sidewalks, in crosswalks, and in parking lots. A strict 10-day notice period may apply if a municipality is involved. Read more on our pedestrian accident page.
• Cyclists involved in a collision with a motor vehicle, including dooring incidents. Details on our bicycle accident page.
• Motorcyclists, who claim SABS through the insurer of any involved automobile or their own policy — see our motorcycle accident page.
• Rideshare and transit passengers, where layered commercial insurance policies (Uber, Lyft, TTC) can apply in addition to standard SABS coverage — see our rideshare accident page and TTC & transit accident page.
• Occupants of commercial vehicles and those struck by transport trucks, where multiple corporate defendants and higher policy limits often apply — see our commercial truck accident page.

Chapter 02 Your Accident Benefits (SABS)

Statutory Accident Benefits are the medical and financial supports your own insurer must pay after a collision, regardless of fault. Eligibility extends to drivers, passengers, pedestrians, and cyclists struck by a motor vehicle. If you do not own a vehicle or hold your own policy, you can typically claim through a household member's policy or, as a last resort, through the insurer of the vehicle involved.

Three Categories of Injury

How your injury is classified determines how much support is available and is one of the most heavily contested areas in the accident benefits system.

How Insurers Dispute Your Claim — And How the LAT Works

Insurers routinely dispute the extent of a claimant's injuries because it directly controls their exposure. The most common battleground is the MIG designation — insurers frequently classify legitimately serious injuries as "minor" to cap benefits at $3,500, even where the medical evidence does not support it. A properly documented claim, with early and consistent treatment records, is the best defence against this.

When an insurer denies, delays, or reduces a benefit, the dispute is resolved at the Licence Appeal Tribunal (LAT), not in court. The process generally unfolds as follows:

1. Insurer denial — you receive an explanation of benefits (EOB) denying or capping the claim.
2. Application to the LAT — a dispute is filed with the Tribunal, triggering case management.
3. Case conference & mediation — the parties attempt to resolve the dispute before a hearing.
4. Hearing — if unresolved, an adjudicator hears evidence, including medical expert opinion, and issues a binding decision.
5. Appeal to the Divisional Court — a LAT decision can be appealed on a question of law within 30 days of the decision, or challenged by judicial review in more limited circumstances.

Glossary — The OCF Forms You Will Encounter

Chapter 03 Your Tort Claim

A tort claim is a civil lawsuit against the at-fault driver for damages not covered by accident benefits — pain and suffering, full income losses, future care, housekeeping, and Family Law Act claims. In motor vehicle cases it is constrained by two statutory barriers: the verbal threshold and the monetary deductible.

The Verbal Threshold

Under s. 267.5(5) of the Insurance Act, pain-and-suffering damages are not available unless the injury caused death, permanent serious disfigurement, or permanent serious impairment of an important physical, mental, or psychological function. Established through medical evidence and specialist opinions.

The Statutory Deductible — 2026 Figures

Even when the threshold is met, Ontario applies a statutory deductible to pain-and-suffering awards. Re-indexed each January 1 by the FSRA. In 2026, the deductible and threshold increased by 2.4%.

Family Law Act Claims

When a person is seriously injured or killed, their close family members may have an independent claim under s. 61 of the Family Law Act for loss of care, guidance, companionship, and — where applicable — grief. Eligible claimants include the spouse, children, grandchildren, parents, grandparents, and siblings of the injured or deceased person. These claims are subject to their own deductible, separate from the injured person's own award.

Chapter 04 The July 2026 Reforms

Narrowed Eligibility — Who Can Claim Optional Benefits

After July 1, 2026, optional benefits apply only to the named insured, their spouse, dependants of the named insured or their spouse, and any listed drivers. Pedestrians, cyclists, and passengers outside this group are limited to the mandatory medical, rehabilitation, and attendant care benefits — they cannot access optional coverage even if the at-fault driver purchased it.

What To Review Before Your Next Renewal

• Read your renewal package. Existing coverages carry over unless you remove them in writing.
• Inventory your other coverage. Group LTD, extended health, CPP-D — what gaps remain? See our long-term disability page if you carry group LTD.
• Weigh the real cost. Opting out saves roughly 5% on premium but can mean losing tens of thousands of dollars in benefits if you're seriously injured.
• Put changes in writing. The regulation requires written consent to remove or modify optional coverage.

Chapter 05 Protecting Your Claim

The steps taken — and not taken — in the hours and days after a collision have a direct impact on the strength of your claim. Evidence is time-sensitive, deadlines are firm, and the decisions made early in the process shape everything that follows. Here is a clear, practical roadmap.

Common Mistakes That Cost Claimants Compensation

How Azimi Law Works With Clients

Reference Key Terms, Plain English