Auto Reform

More choice, more control: Ontario's auto insurance reforms put you in the driver's seat

Starting July 1, 2026, Ontario is making auto insurance more flexible. Some accident benefits that were previously included in every auto insurance policy will become optional, giving you more choice to select coverage that fits your needs.

What are Statutory Accident Benefits?

Statutory Accident Benefits, often called SABs, can provide financial support if you are injured in a car accident. These benefits may be available regardless of who caused the accident and can help with things like medical treatment, rehabilitation, and income replacement if you cannot work because of your injuries.

What's staying the same?

Standard medical, rehabilitation, and attendant care benefits will continue to be included in all auto insurance policies. These benefits help cover essential recovery support after an accident.

You will still have the option to purchase additional or increased benefits and coverages, such as supplementary medical, rehabilitation and attendant care, dependant care, and indexation benefits.

What's becoming optional?

The following auto insurance accident benefits will become optional:

• Income replacement: Helps replace income you or another covered person may lose because of an auto accident.
• Non-earner benefit: If you or another covered person is a student or unemployed and an auto accident keeps them from leading a normal life, this benefit can provide financial support while they recover.
• Caregiver benefits: Helps cover caregiving expenses if you or another covered person is injured in an auto accident and can no longer provide care for a household member, such as a child or aging parent, who needs it.
• Lost educational expenses: If an auto accident keeps you or another covered person from attending school or an educational program, this benefit can help cover the costs you have lost.
• Expenses of visitors: Helps cover the reasonable and necessary expenses of visitors, such as a sibling or parent, if you or another covered person is injured in an auto accident.
• Housekeeping and home maintenance: Helps cover costs if you or another covered person is unable to perform the housekeeping and home maintenance tasks normally completed before an auto accident.
• Damage to personal items: Helps cover the cost to repair or replace personal items, such as clothing, prescription eyewear, hearing aids, etc., damaged in an auto accident.
• Death benefits: Compensates certain family members if you or another covered person dies due to an auto accident.
• Funeral benefits: Helps cover some funeral costs if you or another covered person dies due to an auto accident.

Who is covered under Statutory Accident Benefits?

Starting July 1, 2026, the newly optional benefits under your auto policy will only apply to:

• 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

This means that some people, such as pedestrians, cyclists, and certain passengers who may have been covered in the past may no longer be eligible for these accident benefits.

What this means for you

If you're an existing customer

Your policy will renew automatically with your current coverage and limits unless you agree in writing to decline benefits or make changes to them.

However, who is covered under your policy for newly optional benefits will change on July 1, 2026, regardless of your renewal effective date, as described above.

You can review and update your coverage based on your needs. Before making changes, check whether your personal, workplace, life, or health benefits already provide similar coverage.

If you're a new customer

Customers who purchase a policy on or after July 1, 2026, can choose which optional accident benefits they would like to purchase.

Ask your agent which benefits are included in your quote. You may want to add optional benefits to your policy based on your needs.

If you're a commercial customer or employee

Speak to your agent to learn more about how these changes may impact you, your business, or your employees.

What steps should I take?

Review your current coverage

Know what benefits you already have today through your auto insurance policy.

Review your workplace or private benefits plan

You may already have similar coverage through your workplace benefits plan, private benefits plan, or life and health insurance providers.

Think about your needs

Consider which coverage is right for you and your household.

Speak to your agent

Your agent can help explain your options so you can make informed decisions and choose the benefits that best fit your needs.

Need help?

If you have questions about your auto insurance coverage or how these changes may affect you, please contact your agent.

Disclaimer

The descriptions of the statutory accident benefits in this document 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.

Downloadable resources

Use the resources below to learn more about Ontario's auto insurance reforms and how they may affect you.