The Ontario auto insurance changes that took effect on July 1, 2026 left only medical, rehabilitation and attendant care benefits mandatory. Income replacement, caregiver, housekeeping, death and funeral, and the other accident benefits are now optional. If you already had a policy, it renews with your old benefits unless you agree in writing to remove them. Once you remove them, you cannot get the pre-2026 versions back.
That last point is the one most drivers miss. Removing a benefit to save on your premium is a one-way door, so it is worth ten minutes of review before you sign anything at renewal.
What are the Ontario auto insurance changes in 2026?
Ontario’s Statutory Accident Benefits Schedule (SABS) pays for injuries from a car accident no matter who caused it. Until July 1, 2026, every policy included the same package. The Ontario auto insurance changes split that package into three mandatory benefits and a menu of optional ones.
| Benefit | Status since July 1, 2026 | Standard amount on pre-2026 policies |
|---|---|---|
| Medical, rehabilitation and attendant care (non-catastrophic) | Mandatory | $65,000 combined; buy-up to $130,000 or $1,000,000 |
| Medical, rehabilitation and attendant care (catastrophic) | Mandatory | $1,000,000; buy-up to $2,000,000 |
| Income replacement | Optional | 70% of gross income, up to $400/week |
| Non-earner | Optional | Set by the SABS |
| Caregiver | Optional | Up to $250/week for the first dependant plus $50 per additional dependant (catastrophic injuries only) |
| Housekeeping and home maintenance | Optional | Up to $100/week (catastrophic injuries only) |
| Death benefits | Optional | $25,000 to an eligible spouse; $10,000 per dependant |
| Funeral benefits | Optional | Up to $6,000 |
| Lost educational expenses, expenses of visitors, damage to personal items | Optional | Set by the SABS |
For new policies, insurers now set their own limits for the optional benefits, so two quotes can offer different amounts for the same benefit. Caregiver and housekeeping benefits also changed shape: the new standard version covers all impairments, not just catastrophic ones.
The three benefits that were already optional (supplementary medical, dependant care and indexation) remain optional.
Does my current policy change at renewal?
Not automatically. The Ontario auto insurance changes do not rewrite an existing policy on their own. FSRA, Ontario’s insurance regulator, requires existing policies to renew with the same accident benefits and limits until you agree in writing to change them. There is no deadline; you can keep renewing on your current coverage indefinitely.
The catch is what happens if you opt out. FSRA has confirmed that a customer who removes a benefit moves onto the post-July 2026 options, limits and bundles their insurer offers. You cannot later buy back the pre-2026 version you gave up.
If you do make changes, your insurer adds a new endorsement called the OPCF 47R to your policy, which records the optional benefits you have chosen. You can change your selections midterm as well as at renewal, but only the coverage in force on the day of an accident applies to that claim.
Who is no longer covered after the Ontario auto insurance changes of 2026?
This part applied to everyone on July 1, 2026, regardless of renewal date. Optional accident benefits on your policy now cover only:
- the named insured
- the named insured’s spouse
- dependants of the named insured and of the spouse
- people listed as drivers on the policy
Passengers who are not family or listed drivers, and pedestrians or cyclists struck by your vehicle, no longer get your optional benefits. They still receive the mandatory medical, rehabilitation and attendant care benefits. Anything beyond that has to come from their own policy, if they have one.
Two practical steps follow. Make sure every regular driver in the household is listed on the policy, including a teen with a G2. And if someone in your home cycles or walks to work and has no car policy of their own, talk to your broker about how they would be covered.
Should I drop income replacement if I have work benefits?
Maybe, but check the details first. The income replacement benefit is the most expensive optional benefit to lose, because it replaces wages while you cannot work.
Before removing it, compare it with your workplace or private disability coverage on four points:
- Waiting period. How many days or weeks before payments start?
- Amount. What percentage of your income does it pay, and is there a monthly cap?
- Duration. Does it stop after a set number of weeks, or when you can do any job rather than your own?
- Portability. Does it end if you change jobs or are laid off?
Some drivers have no workplace coverage at all. That includes the self-employed, gig and delivery drivers, commission-based workers, and many part-time employees. For them, income replacement through auto insurance may be the only wage protection they have after a crash. A separate disability insurance policy covers illness and injury from any cause, not just car accidents, so it is worth pricing alongside.
The same logic applies to other benefits. A parent who cares for young children should look hard at the caregiver benefit. A student or someone between jobs should look at the non-earner benefit. A household with dependants should think twice before dropping death benefits unless life insurance already covers that need.
What does “first payer” mean for my workplace health plan?
Since July 1, 2026, your auto insurer pays first for accident-related medical and rehabilitation expenses. Previously you often had to use up your workplace or private health plan before auto insurance paid. The exception is medication, which your other plans may still pay first.
This matters for the “I’m covered at work” argument. Your workplace plan’s physiotherapy or massage allowance now stays available for other needs, because auto insurance covers accident treatment first. That makes the mandatory medical benefits more valuable, but it does nothing for lost income, caregiving or funeral costs. Those are exactly the benefits that became optional.
How much will removing optional benefits save?
Savings from the Ontario auto insurance changes depend on your insurer, and FSRA has not published an official average for consumers. FSRA requires quotes to show the premium for each optional coverage or bundle clearly, so ask for an itemized quote before deciding.
Weigh the saving against the risk. A small monthly saving is easy to see; a year of lost wages after a serious crash is not. [Organisational observation, confirm or replace with a real anonymised example: the question Aaxel brokers hear most often at renewal since July.]
Insurers may also sell optional benefits as bundles rather than one by one. FSRA allows this, but you must always be able to decline the higher-cost coverages. If a bundle includes benefits you do not need, ask whether they are available separately.
How to review your policy after the Ontario auto insurance changes in 2026
Use this checklist to see how the Ontario auto insurance changes affect your household before your next renewal:
- Find your current accident benefits and limits on your policy documents or pink slip package.
- Pull your workplace or private benefits booklet and note disability, life and health coverage.
- Confirm every regular driver in the household is listed on the policy.
- Identify anyone who relies on your income, your caregiving, or your housekeeping.
- Ask for an itemized quote showing the cost of each optional benefit.
- Remember that removing a pre-2026 benefit cannot be undone.
- Put any change in writing, and keep a copy.
FSRA publishes a self-assessment checklist and a fact sheet that walk through the same questions.
This rule change is separate from shopping on price. If you are also comparing insurers at renewal, our guide on how to compare auto insurance quotes in Ontario properly explains how to make sure each quote carries the same accident benefits. For the rest of your policy, such as liability limits and collision coverage, see what auto insurance coverage you really need in Ontario. That guide predates the Ontario auto insurance changes, so this article replaces its accident benefits section.
These rules apply to Ontario policies only. Aaxel also places auto insurance in Alberta, British Columbia and Nova Scotia, where accident benefits work differently.
As an independent broker working with more than 60 insurers, Aaxel can show you side by side how each one prices and bundles the optional benefits. Book a coverage review or learn more about our Ontario auto insurance options.
4. FAQ (publish, with FAQPage schema)
Each answer is self-contained so it can be lifted into a snippet. Mark up only these questions in FAQPage schema.
What changed in Ontario auto insurance on July 1, 2026? Under the Ontario auto insurance changes, most statutory accident benefits became optional. Only medical, rehabilitation and attendant care benefits remain mandatory in every Ontario auto policy. Income replacement, non-earner, caregiver, housekeeping, death, funeral and several smaller benefits must now be chosen to be included.
Which accident benefits are still mandatory in Ontario? Medical, rehabilitation and attendant care benefits. The standard limit is $65,000 combined for non-catastrophic injuries and $1,000,000 for catastrophic injuries, with higher limits available to buy.
Do the Ontario auto insurance changes apply to my existing policy? Your existing policy renews with the same accident benefits and limits unless you agree in writing to change them. However, the narrower rules on who is covered by optional benefits applied to all Ontario policies from July 1, 2026, whatever your renewal date.
Can I get my old accident benefits back after removing them? No. According to FSRA, a customer who opts out of pre-2026 coverage moves to the post-July 2026 options and limits their insurer offers. The earlier coverage cannot be bought back.
Are passengers and pedestrians still covered by my accident benefits? They still receive the mandatory medical, rehabilitation and attendant care benefits. Your optional benefits now cover only you, your spouse, your dependants and drivers listed on your policy, so other passengers, pedestrians and cyclists do not receive them.
What is the OPCF 47R? It is the Ontario policy endorsement that records the optional accident benefits you have chosen and the order in which insurers pay. It is added to your policy when you make changes to optional benefits or at renewal.
Does auto insurance now pay before my workplace health plan? Yes. Since July 1, 2026, auto insurance pays first for accident-related medical and rehabilitation expenses, except medication. That preserves your workplace or private health plan for other needs.
Should I remove income replacement if I have disability coverage at work? Compare the waiting period, the percentage of income paid, how long payments last, and whether the coverage ends if you change jobs. Self-employed and gig workers usually have no workplace coverage, so income replacement may be their only wage protection after a crash.
How much money will I save by removing optional accident benefits? Savings vary by insurer, and there is no official average figure for consumers. Ontario rules require quotes to show the cost of each optional coverage or bundle, so ask for an itemized quote before deciding.
Can I change my optional accident benefits later? Yes, you can change them at renewal or midterm. Only the coverage in force on the date of an accident applies to that claim, so review your choices when your job, family or caregiving situation changes.
Sources
- FSRA: Changes in Statutory Accident Benefits coverage on July 1, 2026 supports which benefits stay mandatory and the OPCF 47R endorsement.
- FSRA: Auto reform accident benefits optionality Q&A for insurers supports the all-customers application, who is covered, renewal in writing, no time limit, no buy-back after opting out, bundling rules, itemized quote pricing, and the caregiver/housekeeping changes.
- FSRA fact sheet: 2026 Accident Benefits Reforms supports the renewal rule, who-is-covered timing and “limits vary by insurer”.
- FSRA: Customize your liability and accident benefits coverage supports the standard limits in the table.
- FSRA: Optional and extra coverage supports the definitions of each optional benefit and links the self-assessment checklist.
- FSRA: What is in a standard auto insurance policy? supports the mandatory benefits for new policies.
- IBAO: Ontario Auto supports the first-payer rule and the renewal default.
- Intact Insurance: 2026 Ontario Auto Insurance Reform supports the medication exclusion from first payer and changing selections midterm.
Disclaimer
This article provides general information about Ontario’s statutory accident benefits as of September 2026. It is not legal, financial or insurance advice for your situation. Coverage, limits and prices vary by insurer and are governed by your policy wording and Ontario Regulation 34/10 (the Statutory Accident Benefits Schedule). Speak with a licensed insurance broker before adding, removing or changing any coverage.
