A guide to Ontario's 2026 auto insurance accident benefits reform
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Alyssa Prizzon, Content Marketing Strategist
The Financial Services Regulatory Authority of Ontario (FSRA) announced new changes to Ontario’s auto insurance reform that will go into effect on July 1, 2026 – and while they appear to provide drivers with more options, it’s important that policyholders are aware of the implications.
Many of the upcoming changes were proposed in Ontario’s 2025 budget, echoing similar sentiments to those in 2024’s budget. For instance, offering drivers more choice in their auto insurance coverage by making some statutory accident benefits (SABS) optional.
Let’s explore the announced changes and what they mean for Ontario drivers.
Key takeaways
- All accident benefits in Ontario will become optional, except for standard medical, rehabilitation, and attendant care benefits.
- Ontario will eliminate the one-size-fits-all approach by allowing drivers to personalize coverage plans and utilize benefits they already have.
- Auto insurance providers will become the primary payor for medical and rehabilitation claims, allowing Ontarians to reserve their workplace benefits for future needs.
- Review your policy in depth to learn what you’re covered for before deciding which benefits to add or opt out of.
Changes to Ontario’s accident benefits reform
1. More consumer choice
According to the FSRA, Ontario’s accident benefits will become more consumer-focused by enabling greater choice and flexibility. While specific benefits, such as standard medical, rehabilitation and attendant care, remain mandatory, all other accident benefits will become optional.
The goal is to let drivers determine which coverage is right for them, while continuing to ensure that essential care, like doctor visits and physiotherapy, is provided to anyone injured in an accident.
The table below outlines the benefits that will be optional starting July 1, 2026.
| Optional Benefits | What it Covers |
| Income replacement | Helps replace income lost due to an accident. |
| Non-earner | Provides financial support to students or unemployed individuals affected by an accident. |
| Caregiver benefits | Provides support for caregiving expenses if you can no longer care for a household member due to injuries. |
| Lost educational expenses | Provides financial support to cover costs lost if you can no longer attend school. |
| Expenses of visitors | Covers the expenses of visitors if you are injured in an accident. |
| Housekeeping & home maintenance | Covers expenses if you can no longer perform your regular housekeeping and maintenance tasks. |
| Damage to personal items | Provides financial support to repair or replace personal items that were damaged in an accident. For example, hearing aids or clothing. |
| Death benefits | Provides compensation to family members if you pass away due to a car accident. |
| Funeral benefits | Helps pay for funeral costs. |
The following table outlines the current optional accident benefits that will remain optional add-ons.
| Optional Benefit | What it Covers |
| Supplementary medical, rehabilitation and attendant care benefits | Covers expenses for medical benefits beyond the standard limits. |
| Dependent care benefits | Financial support to cover costs associated with caring for dependants, such as a child. |
| Indexation benefits | Ensures the income replacement benefit is adjusted to reflect inflationary changes in the cost of living. |
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2. Personalized coverage plans
In addition to providing more consumer choice, the FSRA changes will eliminate the one-size-fits-all approach to accident benefits in Ontario, making them more customizable. Many Ontario drivers already have benefits through their employer or private plans. So, instead of paying for them through auto insurance, drivers can choose to remove them from their coverage and utilize their existing benefits.
3. Protecting workplace benefits
Lastly, the auto reform changes will make auto insurance providers the first payor for medical and rehabilitation claims (excluding medication expenses) in the event of an accident. This means insurers will cover those costs before workplace benefits, allowing policyholders to save them for future needs.
Next steps for Ontario drivers
These changes will take effect on July 1, 2026. However, you can start to review your policy now to understand your current coverage and decide on any benefits you may want to opt out of.
- Review your existing auto insurance policy and become familiar with what you’re covered for.
- Review other insurance policies you may have, either through group benefits or private plans and confirm your coverage.
- Identify any gaps in coverage and what you need to have in place for proper protection.
- Connect with your auto insurance broker or agent to learn about your options.
Your policy will renew with your current coverage, but you will have the chance to remove or add any optional accident benefits once the changes go into effect.
The bottom line
Changes are coming to Ontario’s accident benefits reform. Drivers will have more choice in their coverage as certain benefits become optional. They will also have more opportunities to utilize the benefits they already have, rather than paying for them through their auto premiums. Drivers will also be able to preserve workplace benefits, as insurers will become the primary payor for claims.
Before making changes to your coverage, review your policy in depth to learn what you’re covered for and decide which benefits are necessary for your unique situation.
To find affordable coverage, compare Ontario auto insurance quotes online today at Ratehub.ca.