2026 Ontario Auto Reform
Upcoming 2026 Ontario Auto Reform Changes
More choice, more flexibility: Ontario’s auto insurance reforms put you in the driver’s seat
Effective July 1, 2026, some important changes are coming to auto insurance in Ontario. These improvements will provide you with more options and control over your accident benefits coverage to best meet your needs.
What are Statutory Accident Benefits and what will stay the same?
Statutory Accident Benefits (SABS) provide financial support if you are injured in a car accident. These benefits are 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’ll 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?
Starting July 1, 2026, the following benefits will no longer be automatically included. You can choose to add them based on your needs:
- Income replacement offers compensation for lost wages due to an accident.
- Non-earner: if you're a student or unemployed and an accident keeps you from leading a normal life, this provides financial support while you recover.
- Caregiver benefits offers caregiving expenses if you or another covered person is injured and can no longer provide care for a household member such as a child or aging parent who needs it.
- Lost educational expenses provides coverage if you have a car accident and can’t attend school or an education program.
- Visitor expenses covers reasonable and necessary expenses of visitors if you or another covered person is injured in an accident
- Housekeeping and home maintenance helps cover costs if you or another covered person is unable to perform the housekeeping and home maintenance tasks.
- Damage to personal items covers the repair or replacement of personal items damaged in an accident (e.g., clothing, prescription eyewear, hearing aids, etc.) that were damaged in the accident.
- Death benefits: compensates family members if you or a covered person dies due to an accident.
- Funeral benefits helps cover some funeral costs.
Who is covered under Statutory Accident benefits (SABS)?
Starting July 1, 2026, 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 unless they are included in the categories listed above.
What this means for you
- If you’re an existing customer your current coverage will automatically continue as it is today unless you notify your insurance broker that you’d like to make any changes to your auto insurance policy.
- If you’re a new customer starting July 1, 2026, you can choose which optional accident benefits you would like to purchase. Talk to your insurance broker to see which benefits suit your needs and budget.
What steps should I take?
- Review your current coverage (if you are an existing customer) with your Insurance Broker
- Review your workplace or private benefits plan to avoid overlap. You may already have coverage through your workplace, private benefits plan, or life and health insurance providers.
- Think about the coverage that is right for you and your budget.
- Discuss and explain options with your Insurance Broker.
Download our fact sheet for more information:
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Need help?
Contact your Insurance Broker if you have any questions.