Ontario Auto Insurance
Changes in 2026
What Drivers and Their Families Need to Know
Why This Matters to You in 30 Seconds
Ontario auto insurance is changing after July 1, 2026. Here's the quick overview:
- Certain accident benefits may no longer be automatically included in every policy
- Optional benefits will generally apply only to named insureds, spouses, dependants, and listed drivers
- Standard accident benefits will continue to apply more broadly
- Your policy will still renew, but reviewing coverage is increasingly important
- This is a great opportunity to review your overall liability protection to help ensure you have sufficient financial coverage
Taking a few minutes now to understand these changes can help you feel more prepared at renewal.
What Are Statutory Accident Benefits?
Statutory Accident Benefits are designed to provide financial and recovery support if you are injured in a motor vehicle accident, regardless of who caused the collision.
After July 1, 2026, core accident benefits will continue to be included in all auto insurance policies, while some additional benefits may become optional or apply only to certain insured individuals.
What Will Continue to Be Included in All Policies
Coverage for necessary medical treatment after an accident. Provides a limit of $65,000 for Non-Catastrophic injuries and $1 million for Catastrophic injuries.
Support for therapy and recovery services such as physiotherapy, included within the Medical & Rehabilitation limits.
Assistance with daily personal care needs following an injury, included within the core coverage limits.
What Accident Benefits Will Become Optional?
Beginning July 1, 2026, several additional accident benefits will become optional coverage choices. Reviewing these with your broker can help ensure your coverage continues to provide the level of financial protection you expect.
Replaces lost income if you're unable to work due to an accident.
Typical limits: $400, $600, $800, or $1,000/week
Financial support for individuals not employed (students, retirees, unemployed) who are unable to lead a normal life.
Typical limits: Insurer specific; designed for basic living expenses
For full-time caregivers — covers expenses if you can't provide care for a household member.
Typical limits: Up to $250/week (first dependant), $50/week (additional), for non-catastrophic injuries only
Covers costs if you can't perform usual household tasks.
Typical limits: Up to $100/week
Covers costs if you can't attend school or educational programs due to an accident.
Typical limits: Insurer specific; tuition, books, education costs
Reasonable transportation and lodging for family members visiting during recovery.
Typical limits: Insurer specific; travel, accommodation, etc.
Repair or replacement of personal items damaged in the accident.
Typical limits: Insurer specific; e.g. clothing, eyewear, hearing aids
Financial compensation to family and help covering funeral costs if you or a covered person dies due to an accident.
Typical limits: Death: $25,000 spouse, $10,000 dependant (optional increased: $50,000/$20,000). Funeral: $6,000 or $8,000
If you are employed — covers expenses for caring for dependants (child, spouse, aging parents).
Typical limits: $75/week (first dependant), $25/week (additional), up to $150/week
Adjusts benefits annually for inflation (CPI), ensuring benefits keep pace with cost of living.
Typical limits: Insurer specific
Expenses beyond standard limits for medical, rehab, and attendant care — for those who want higher coverage than the mandatory core.
Typical limits: Option 1: Increase Non-Catastrophic to $130,000 or $1M. Option 2: Increase Catastrophic to $2M. Option 3: Combined $3M total for all injuries.
* Coverage options may vary by insurance company.
Who Will Be Covered Under Optional Benefits?
Optional accident benefits under your auto policy will only cover the following individuals:
- The named insured
- The spouse of the named insured
- Dependants of the named insured and the named insured's spouse
- Persons specified in the policy as drivers of the automobile(s)
Standard accident benefits will continue to apply more broadly.
Auto Insurers Will Become the First Payor
In many situations, your auto insurance policy will become the first payor for eligible medical and rehabilitation costs (excluding prescription medications). This means your auto coverage will respond before workplace or private health plans, which may help preserve those benefits for other healthcare needs.
Your MIB broker can help explain how this coordination of benefits may apply to your personal situation.
What This Means For You
Existing Customers
- Your policy will renew with your current coverage and limits unless you request changes
- Certain optional benefits may apply differently starting July 1, 2026
- Reviewing your policy before renewal can help ensure your protection still reflects your needs
New Policies
- Drivers purchasing a new policy effective July 1, 2026 and onward may have more flexibility in choosing optional benefits
- Your MIB broker can help you assess how these options align with your employment, caregiving responsibilities, and financial priorities
- Consider how existing workplace or private insurance coverage may affect your needs
New Coverage Bundles
- Insurance companies may offer optional benefits individually or as part of bundled coverage options
- Bundles are intended to provide greater flexibility and a level of protection that aligns with your lifestyle
- Available options and bundle structures will vary by insurer — your MIB broker can help you compare
Reviewing Your Liability Protection
When reviewing your Accident Benefits, it is also a good opportunity to take a broader look at your Third-Party Liability protection. Liability coverage helps protect you financially if you are found responsible for injuries to others or damage to property following an accident.
In today's environment — where medical costs, legal expenses, and settlement amounts continue to rise — many drivers are choosing to reassess whether their current liability limits still reflect their financial reality. Increasing liability limits may help provide additional reassurance that your personal savings, home equity, investments, and future income are better protected if a serious claim arises.
Read: The Case for $2 Million Third Party Liability Coverage →Strengthening Your Financial Safety Net
Beyond standard liability limits, some individuals choose to explore Excess Liability or Personal Umbrella coverage as part of their overall financial protection strategy. These coverages provide an additional layer of protection once the liability limits on your primary auto or home insurance policy have been reached, and may also help cover legal defense costs associated with complex claims.
Questions to Consider Before Your Next Renewal
As your renewal approaches, it may be helpful to reflect on the following. These questions are intended to help you make thoughtful, informed decisions about your protection — not just for today, but for the future.
Do you have short-term or long-term disability coverage through your employer or a private plan?
If not, the Income Replacement Benefit may play an important role in helping you maintain financial stability after an accident.
Do you provide care for children, aging parents, or other dependants?
Caregiver or Dependant Care benefits may help cover the cost of alternative care arrangements if you are injured.
Are you employed while also supporting dependants who rely on you?
The Dependant Care Benefit can help offset caregiving expenses during your recovery period.
Do you currently rely on workplace group insurance coverage?
Some group plans have limits. Reviewing increased Medical and Rehabilitation limits can help provide additional financial support if needed.
Are you self-employed or without disability coverage?
Income Replacement Benefits may help provide financial continuity if an injury affects your ability to earn income.
Have you considered the needs of other drivers listed on your policy?
Coverage choices may affect the level of protection available to listed drivers as well. It can be helpful to review their circumstances when selecting optional benefits.
Real-Life Scenarios
These examples illustrate how different optional benefits may support individuals and families after an accident.
If an injury prevents you from working, everyday expenses such as rent, mortgage payments, or groceries may still continue. A self-employed professional may need to rely on personal savings during recovery, or a single-income household may face financial pressure if earnings stop unexpectedly. Income Replacement Benefits can help provide financial continuity while you focus on recovery.
Individuals who are not currently earning income — such as students, retirees, or those between jobs — may still experience financial challenges after an injury. A student may be unable to attend classes or complete coursework, or a retiree may need assistance managing daily routines. Non-Earner Benefits can help support basic living expenses if injuries affect normal daily functioning.
Some individuals provide essential care to children, aging parents, or family members. If an injury prevents a primary caregiver from fulfilling those responsibilities, alternative care arrangements may be needed. Caregiver Benefits can help offset those additional costs during your recovery period.
An injury may make it difficult or impossible to manage household tasks such as cleaning, cooking, or home maintenance. Housekeeping & Home Maintenance Benefits can help cover the cost of services needed to keep your home running during recovery.
Ready to Review Your Coverage?
Our brokers are here to help you navigate these changes with clarity and confidence.
Frequently Asked Questions
- What are Statutory Accident Benefits (SABS)?
- When do these changes take effect?
- Will my policy automatically change on July 1, 2026?
- Who is covered under optional accident benefits?
- What if I already have disability coverage through work?
- How do I make changes to my coverage?