ACCIDENT BENEFITS
Ontario Accident Benefits Are Changing July 1, 2026
Important changes are coming to Ontario’s auto insurance system.
Several accident benefits that were once automatically included will become optional.
You’ll have a choice — but it’s important to understand what’s at stake.
What’s Changing?
Starting July 1, 2026, many accident benefits will no longer be included in every auto insurance policy.
These benefits will become optional, giving you the flexibility to choose the coverage that fits your needs — and your budget.
Medical, Rehabilitation & Attendant Care remains mandatory and will continue to be included in every Ontario auto policy.
Starting July l, 2026, Ontario is introducing changes under the Insurance Act (Ontario) that will provide Ontario drivers with more choice and control over their Statutory Accident Benefits (SABs) coverage under Ontario auto insurance policies.
Some SABs will become optional when you buy or renew your automobile insurance policy on or after July l, 2026. Because you now have more choice, it’s important to review your SABs coverage to make sure it fits your unique needs. SABs are “no-fault” which means they’re available regardless of who caused the auto accident.
Before you consider making changes to your SABs coverage, it’s important to review your personal and workplace benefits policies (as applicable), as they may provide similar coverage. Opting out of certain optional SABs might save you money in the short-term, but if you’re in an auto accident, opting out of certain SABs may cost you more money in the long run. It’s important to weigh these short-term savings against the potential long-term costs of opting out.
Although existing auto insurance policies will renew with the same coverage and limits, who is covered under policies for newly optional accident benefits will change on July l, 2026, regardless of an auto insurance policy’s renewal effective date. As a result, optional accident benefits under your auto policy will only cover the following individuals:
• The named insured
• The spouse of the named insured
• Dependents of the named insured and of the named insured’s spouse
• Persons specified in the policy as drivers of the automobile
Optional Accident Benefits (Effective July 1, 2026)
| Benefit | Coverage | Mandatory or Optional | If You Opt Out |
|---|---|---|---|
| Medical, Rehabilitation & Attendant Care | Covers medical expenses, therapy and personal care for injuries from an accident, including doctor visits and physiotherapy. | Mandatory | Included in every auto insurance policy. |
| Income Replacement | Helps replace lost income if you, or someone else covered under the auto policy, is injured and loses income from not being able to work. | Optional after July 1, 2026 | No lost income support — you may need to rely on Employment Insurance Sickness Benefits, Canada Pension Plan Disability Benefits, workplace disability coverage or other financial resources. |
| Caregiver | 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. | Optional after July 1, 2026 | Excluded from your policy. |
| Non-Earner | If you or another covered person is a student or unemployed and an auto accident prevents that person from leading a normal life, this benefit may provide financial support during recovery. | Optional after July 1, 2026 | Excluded from your policy. |
| Lost Educational Expenses | Reimburses certain education expenses incurred by you or another person covered under the policy when an auto accident prevents attendance at college, university or another educational program. | Optional after July 1, 2026 | Excluded from your policy. |
| Visitor Expenses | May cover reasonable and necessary travel and lodging expenses for visitors, such as parents or siblings, while you or another covered person is receiving treatment or recovering from accident-related injuries. | Optional after July 1, 2026 | Excluded from your policy. |
| Housekeeping & Home Maintenance | Helps cover costs when you or another covered person cannot perform the housekeeping and home maintenance tasks normally completed before an auto accident. | Optional after July 1, 2026 | Excluded from your policy. |
| Damage to Personal Items | Covers the cost of repairing or replacing personal items such as clothing, prescription glasses or hearing aids that were damaged in an auto accident. | Optional after July 1, 2026 | Excluded from your policy. |
| Death | May provide compensation to certain family members if you or another person covered under the policy is killed as a result of an auto accident. | Optional after July 1, 2026 | Excluded from your policy. |
| Funeral | May help pay certain funeral expenses if you or another person covered under the policy is killed as a result of an auto accident. | Optional after July 1, 2026 | Excluded from your policy. |
Why This Matters
Life is Unpredictable
A serious accident can impact your health, income and family.
Costs Add Up Quickly
Recovery often comes with unexpected expenses beyond medical bills.
Protect What Matters
The right coverage can make all the difference when you need it most.
Your Choice, Your Coverage
We’ll help you understand your options so you can make an informed decision.
Make an Informed Choice
Opting out of these benefits may lower your premium, but it could leave you paying thousands out of pocket if you’re injured in an accident.
Our team will walk you through each optional benefit, explain the pros and cons, and help you choose the coverage that’s right for your life.
- Clear explanations
- Personalized advice
- Coverage that fits your needs
- Peace of mind for you and your family
Self-assessment checklist:
do you need optional accident benefits?
Optional AB Definitions & Checklist
Renewing Your Auto Insurance Policy
Your auto insurance policy will renew automatically with your current coverage and limits ( unless you agree with your insurer in writing to decline certain SABs or make changes to them). Starting July l, 2026, if you purchase or renew an automobile insurance policy you can chose to remove SABs that became optional from your insurance policy, but it’s important to consider how removing these benefits could impact you.
Before making any changes to your SABs coverage, speak with a licensed Ontario Broker to understand what changes to your SABs coverage may be right for you and how changes in your personal circumstances (starting a new job, going back to school, or taking on caregiving responsibilities) may impact what SABs coverage you need.
Key Considerations
If you found yourself unable to work as a result of an accident, where would your income come from?
Income Replacement is optional. Without a disability or workplace plan, you could lose your income if you can’t work.
Are you the primary caregiver for a dependent such as a child, elderly parent or a person with a disability?
Caregiver benefits are no longer automatic. Opt in to help cover care costs if you become injured in an accident.
If you had a complete inability to carry on a normal life, what costs would you be unable to recover?
Non-Earner benefits provide support if you’re a student or are unemployed and can’t manage everyday tasks after an accident.
If you became impaired from an accident, would you need to hire someone to do your house cleaning, shovelling and yard work?
Housekeeping & Home Maintenance benefits help with cleaning and household tasks if you can’t carry them out yourself.
If you’re looking for insurance near you, we’re here to help.
Contact Kenny Insurance Brokers today for a free consultation and quote tailored to you.
Accident Benefits FAQ
Accident benefits provide financial support if you are injured in a motor vehicle accident, regardless of who is at fault. Coverage may include medical and rehabilitation expenses, attendant care, income replacement, caregiving expenses, housekeeping assistance, and other benefits that help you recover after an accident.
Beginning July 1, 2026, several accident benefits that were previously included in standard Ontario auto insurance policies become optional coverage. Drivers will have the choice to purchase or decline certain benefits, including income replacement, caregiver benefits, non-earner benefits, housekeeping assistance, visitor expenses, and other protections.
The right decision depends on your personal circumstances, employment situation, family responsibilities, and financial resources. While opting out may reduce your premium, it could leave you without important financial support following a serious accident. Speaking with an insurance broker can help determine which benefits are appropriate for your needs.
Without income replacement benefits, you may need to rely on other programs such as Employment Insurance (EI) Sickness Benefits, Canada Pension Plan (CPP) Disability Benefits, workplace disability plans, or personal savings. These programs may not provide the same level of coverage or support as accident benefits available through your auto insurance policy.
The best coverage depends on factors such as your employment status, family responsibilities, existing disability coverage, and financial situation. A licensed insurance broker can review your circumstances and explain the benefits, limitations, and costs of each available option so you can make an informed decision.
Yes. Medical, rehabilitation, and attendant care benefits remain mandatory and are included in every Ontario auto insurance policy. These benefits help cover treatment, therapy, and personal care costs resulting from injuries sustained in an accident.
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