Ontario Auto Accident Benefit Changes: What You Need to Know

Starting July 1, 2026, Ontario is changing how auto insurance accident benefits work. Some benefits that were automatically included in every policy are becoming optional. Here’s what that means for you, in plain language.

What are statutory accident benefits?

Statutory Accident Benefits (SABs) are financial protections built into every Ontario auto insurance policy. If you’re injured in a car accident, they can help cover things like medical care, rehabilitation, and lost income — regardless of who caused the accident.

Before July 1, 2026, most of these benefits were automatically included. After July 1, many of them become optional, meaning you can keep them, add more, or in some cases remove them from your policy.

What’s staying in every policy?

STAYS STANDARD - Medical, rehabilitation and attendant care

Covers doctor visits, physiotherapy, and personal care support after an injury (like help with bathing, dressing, and daily activities). Available no matter who caused the accident.

Standard limits: $65,000 for non-catastrophic injuries and $1,000,000 for catastrophic injuries (5-year time limit). Higher limits are available.

STAYS STANDARD - Examinations

Cost of examinations is also still included as a standard benefit.

What's becoming optional?

These benefits were previously included automatically. After July 1, 2026, they’re still available — you’ll just need to actively choose to keep or add them.

• Income Replacement

  Replaces up to 70% of your gross income (up to $400/week base) if you can’t work after an accident.

• Non-earner Benefit

  Provides $185/week if you’re a student or not working and an accident prevents you from living your normal life.

• Caregiver Benefit

  Helps cover the cost of caring for a child or dependent adult if your injury means you can’t provide that care.

• Housekeeping and Home Maintenance

  Up to $100/week if an injury means you can’t keep up with household tasks.

• Death Benefit

  Provides financial support to a surviving spouse ($25,000 base) and dependants ($10,000 base) if a covered person dies as a result of an accident.

• Funeral Benefit

  Up to $6,000 to help cover funeral costs.

• Lost Educational Expenses

  Up to $15,000 if an accident prevents you or a covered person from completing a school program.

• Expense of Visitors

  Covers reasonable travel costs for family members visiting you while you recover.

• Damage to Personal Items

  Covers repair or replacement of clothing, prescription glasses, hearing aids, or other medical devices damaged in an accident.

Dependant Care Benefits and Indexation (which adjusts your benefits for inflation over time) were already optional before July 1 and remain optional.

Who the optional benefits apply to

This is one of the more significant changes. Before July 1, optional benefits generally covered a broader group of people involved in an accident. After July 1, optional benefits only apply to a specific list of people connected to the policy.

• Covered for optional benefits
• Standard benefits only

Standard accident benefits (medical, rehabilitation, and attendant care) still apply to everyone involved in an accident in Ontario, including pedestrians and cyclists. The narrowing applies only to optional benefits. If you have adult children, a partner’s family member, or others who regularly use your vehicle and don’t have their own policy, it’s worth a conversation with your agent or broker.

Before and after: a quick comparison

Here’s how the key benefits change on July 1, 2026.

Things worth thinking about before making any changes

The government’s intent is to give drivers more flexibility, including the option to reduce coverage if they already have protection elsewhere. That can make sense for some people. But “optional” doesn’t mean “not important.”

• Do you have workplace benefits that cover income loss?

  If you have sick days, short-term disability, or long-term disability through work, that’s worth reviewing. If purchased, auto insurance income replacement acts as a top-up or fills gaps when workplace benefits run out or don’t apply.

• Does your household depend on your ability to earn?
  Income replacement and non-earner benefits exist because accidents can sideline you for months. Without them, the financial pressure lands directly on your household.
• Do you care for someone who depends on you?
  Caregiver benefits matter most for people looking after children, aging parents or other adult dependants. If that’s your situation, it’s worth making sure you have coverage if an accident takes you out of commission.
• Have you thought about the people who ride in your vehicle?
  After July 1, passengers who don’t have their own auto policy won’t have access to optional benefits through yours. For frequent passengers who aren’t listed on a policy, this is worth discussing with your agent or broker.

The information in this document is a summary of Ontario’s statutory accident benefit changes effective July 1, 2026. It’s based on Ontario Regulation 34/10 (the Statutory Accident Benefits Schedule). Don’t rely on this summary alone for coverage decisions. For full details, refer to the SABS directly or talk with your agent or broker.