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 (SABs) can provide financial support if you are injured in a car accident. These benefits can be available regardless of who caused the accident and can cover things like medical treatment, rehabilitation and income if you can’t 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 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.
Who is covered under Statutory Accident Benefits (SABS)?
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 of 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 accident benefits.
Disclaimer
The descriptions of the statutory accident benefits in this document is a summary of the statutory accident benefits in Ontario Regulation 34/10 (the “SABS”). Do not rely on this summary alone. For full details, refer to the SABS or speak with your broker.
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 with your insurer in writing to decline the benefits or to make changes to them. However, who is covered under your policy for newly optional benefits will change on July 1, 2026, regardless of renewal effective date, as described in the list above. You can review and update your coverage based on your needs. Before making changes, check if your personal or work benefits already provide similar coverage.
If you’re a new customer
Customers who are purchasing or renewing a policy on or after July 1, 2026, can choose which optional accident benefits they would like to purchase. Ask your broker 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 broker to learn more about how this change impacts you or your employees.
Frequently Asked Questions
Not necessarily. Making certain accident benefits optional gives you the chance to reduce coverage (and potentially lower your premium), but any savings are often modest. Premiums are influenced by many factors, including claims history, driving record, vehicle type, and overall market conditions. If you keep the same level of coverage you have now, your premium will not automatically drop because of the reform. Speak with your broker to see what the actual impact would be for your specific policy.
If you are an existing customer, your policy will generally renew with the same coverage and limits you currently have, unless you and your insurer agree in writing to decline or change any benefits. However, starting July 1, 2026, the people covered by the newly optional benefits are limited to the named insured, their spouse, their dependants, and listed drivers—regardless of your renewal date. New or renewing policies on or after July 1, 2026, will only include the mandatory benefits (medical, rehabilitation, and attendant care) by default, so you will need to actively choose any optional benefits you want.
It depends on your personal situation. Workplace or private disability insurance may cover income loss, but it often has waiting periods, different definitions of disability, lower benefit amounts, or exclusions that do not apply to auto accident benefits. Auto insurance benefits are no-fault and specifically designed for injuries from motor vehicle accidents. Many people find that the two types of coverage complement each other rather than fully replace one another. Review both your group benefits booklet and your auto policy with your broker so you can decide what level of protection makes sense for you and your family.
Passengers, pedestrians, and cyclists who are injured in an accident involving your vehicle will still have access to the mandatory benefits (medical, rehabilitation, and attendant care) under your policy. However, they will generally no longer be eligible for the optional accident benefits (such as income replacement, caregiver benefits, housekeeping, death, or funeral benefits) under your policy. Those optional benefits now apply only to the named insured, their spouse, their dependents, and listed drivers. Passengers may have coverage under their own auto policy (if they have one) or through other sources.
? Contact your broker. For existing policies, any changes to optional benefits usually need to be made in writing and may take effect at renewal or mid-term depending on your insurer’s process. For new policies or renewals on or after July 1, 2026, you will be asked which optional benefits you want when you purchase or renew coverage. Your broker can walk you through the available options, explain the cost of each, and help you compare them against any other coverage you already have (for example, workplace benefits).
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