Starting July 1, 2026, Ontario is introducing changes to auto insurance that will give drivers more choice and control over their auto insurance coverage.

While certain essential accident benefits will remain mandatory, several others will become optional. Some accident benefits that were previously included automatically in every auto insurance policy will now become optional, giving policyholders the flexibility to choose coverage based on their individual needs.

The Ontario Automobile Policy wording has also been updated effective July 1, 2026.

What Are Statutory Accident Benefits?

Statutory Accident Benefits, often called SABs, provide financial support if you are injured in an auto accident — regardless of who caused the accident.

These benefits can help cover expenses related to:

• Medical treatment
• Rehabilitation
• Attendant care
• Income replacement
• Other accident-related expenses

They are designed to help support your recovery and provide financial assistance during a difficult time.

What’s Staying the Same?

Standard medical, rehabilitation, and attendant care benefits will continue to be included in all Ontario auto insurance policies.

These benefits are available regardless of who caused the accident and help cover essential recovery support after an auto accident.

Drivers will also continue to have the option to purchase additional or increased benefits, including:

• Supplementary medical, rehabilitation, and attendant care benefits
• Dependant care benefits
• Indexation benefits

What’s Becoming Optional?

Beginning July 1, 2026, several accident benefits will no longer be automatically included in every policy and will instead become optional accident benefits.

These include:

• Income replacement benefits
• Non-earner benefits
• Caregiver benefits
• Lost educational expenses
• Expenses of visitors
• Housekeeping and home maintenance benefits
• Damage to personal items
• Death benefits
• Funeral benefits

Optional benefits may apply to you and other covered persons listed under your policy.

This means drivers will need to decide whether they would like to add these optional accident benefits to their policy.

Changes to Who Is Covered

Another important change involves who is eligible for these newly optional accident benefits.

As of July 1, 2026, these benefits will only apply to:

• The named insured
• The spouse of the named insured
• Dependants of the named insured and their spouse
• Drivers specifically listed on the policy

As a result, some individuals who may have previously been eligible for coverage — such as pedestrians, cyclists, and certain passengers — may no longer qualify for these accident benefits.

What This Means for Existing Customers

If you already have an auto insurance policy, your coverage will automatically renew with your current limits and benefits unless you agree in writing to decline benefits or make changes to them.

However, the new eligibility rules surrounding who is covered under optional benefits will still take effect on July 1, 2026, regardless of your policy renewal date.

Before making changes, it is important to review whether your workplace benefits, private insurance plans, or life and health insurance policies already provide similar coverage.

This is a great opportunity to review your coverage and determine whether it still meets your needs.

What This Means for New Customers

If you purchase a policy on or after July 1, 2026, you will have the option to choose which optional accident benefits you would like included in your coverage.

Before making decisions, it’s important to understand:

• Which benefits are included in your quote

• What optional accident benefits are available

• Whether you already have similar protection through workplace or private benefits plans

Commercial Policies and Employees

If you own a business or manage employees who drive for work purposes, these reforms may also impact your commercial auto coverage and employee protection.

Speaking with your insurance agent can help ensure you understand how these changes apply to your business operations and coverage needs.

Steps You Can Take

Review Your Current Coverage

Take time to understand what accident benefits are currently included in your auto insurance policy.

Review Other Benefits Plans

You may already have similar coverage through workplace benefits, private insurance plans, or life and health insurance policies.

Consider Your Household’s Needs

Every household is different. Think about what level of protection is right for you and your family.

Speak With Your Agent

Your agent can help explain your coverage options, answer your questions, and help you choose the benefits that best fit your needs.

We’re Here to Help

Auto insurance can feel complicated — especially when changes are introduced. Understanding your coverage is one of the best ways to make informed decisions and ensure you have the protection that matters most to you.

Talk to your agent to learn more about your coverage options.

If you have questions about Ontario’s auto insurance reforms or your current coverage, please contact your agent.

Disclaimer

The descriptions of the statutory accident benefits in this blog are a summary of the statutory accident benefits in Ontario Regulation 34/10, the Statutory Accident Benefits Schedule. Do not rely on this summary alone. For full details, refer to the Statutory Accident Benefits Schedule or speak with your agent.

For more information about Ontario’s auto insurance reforms and optional accident benefits, please visit: salusmutual.ca/autoreform/