If you’re in a serious car accident, you don’t want to be worrying about fine print. But starting July 1, 2026, some of the protections Ontario drivers have relied on for years will no longer come automatically with your auto insurance. With this upcoming change in the Summer, Ontario will make its Statutory Accident Benefits Schedule (SABS), making only a few benefits mandatory. These include medical, rehabilitation and attendant care benefits.
Come Summer, drivers purchasing new policies must opt into any optional auto accident benefits. Some examples include income replacement, caregiver benefits, housekeeping expenses, and death and funeral benefits. Those who plan to renew an older policy will be able to opt out of these optional auto accident benefits if they already have them. Here’s how the changes to Ontario Accident Benefits affect you, why it matters, and how to prepare.
The Big AB Change: From Standard to Optional
Right now, most accident benefits are automatically included in every Ontario auto insurance policy. These benefits encompass income replacement, caregiver expenses, non-earner benefits, death and funeral expenses, and other benefits.
As of July 1, 2026, only three types of benefits will be guaranteed:
- Medical benefits (treatment and healthcare costs after an accident)
- Rehabilitation benefits (services to help you recover)
- Attendant care benefits (support if you need daily help due to injuries)
Everything else becomes optional. That means you’ll need to decide — and pay extra — for benefits like income replacement or caregiver support.
Why the Change?
The Ontario government states that its goal is to provide drivers with more choice and flexibility. If you already have workplace benefits or don’t feel you need certain protections, you could decline them and potentially lower your premiums. But industry experts warn there’s a catch. As Adam Mitchell, CEO of Mitch Insurance, put it: “Giving people the easy-door option to opt out of a coverage… could be a pretty slippery slope, because you’re just transferring the coverage from the policy over to their visa statement.” In other words, skipping coverage may save you a few dollars now, but could leave you with high out-of-pocket costs later.
Optional Auto Accident Benefits Offer More Flexibility
Steven Harris, a LowestRates.ca expert and licensed insurance broker, recently spoke to The Canadian Underwriter on the topic. He believes the change will offer more flexibility for consumers. With this in mind, there are some areas of concern with the release of optional auto accident benefits. Consumers will need to understand what exactly they are giving up. This way, they don’t unintentionally remove protections they may end up requiring after a collision.
“Many of these benefits that are becoming optional are the ones that people rely on most during recovery,” Harris says. “If someone is injured and unable to work, or if their family needs support after a serious collision, opting out of these protections could create significant financial strain.”
A major concern is that people may tend to opt out of optional auto accident benefits to save money on their premiums. Although this may be the case for a while, a serious accident without these premiums can create financial issues much larger than the initial premiums they were paying.
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Who Will It Impact the Most?
Ontarians’ entitlement to statutory accident benefits will be reduced from a robust system of coverage, in place since 1990 in various incarnations, to medical, rehabilitation, and attendant care benefits only. The changes voted in last October will also revoke expenses for damage to personal items, death benefits, and funeral benefits.
While all drivers should pay attention to these changes, certain groups may be particularly vulnerable, including:
- Pedestrians
- Cyclists
- Occupants of vehicles who are otherwise underinsured
- Self-employed individuals who rely on consistent income and do not have workplace disability benefits.
- Stay-at-home parents and caregivers perform unpaid yet essential roles.
- Students and new graduates who are not yet earning full-time incomes or do not have access to group insurance.
In the end, people who are not insured under their own policies will have significantly less funding if they’re injured in a car accident. Starting this summer, if you do not have the right coverage in place, the financial impact of an accident could be devastating.
What Accident Benefits Cover: Now vs. After July 1, 2026
| Benefit | What It Means in Real Life | Included Now (2025) | After July 1, 2026 |
| Medical & Rehabilitation | Covers treatment costs like physiotherapy, chiropractic care, and counselling | ✅ Mandatory | ✅ Mandatory |
| Attendant Care | Pays for help with daily personal care if you’re seriously injured | ✅ Mandatory | ✅ Mandatory |
| Income Replacement | Helps replace your paycheque if you can’t work after an accident | ✅ Mandatory | ❌ Optional |
| Non-Earner Benefit | Provides financial support if you’re a student, unemployed, or can’t carry on with everyday life | ✅ Mandatory | ❌ Optional |
| Caregiver Benefit | Helps cover costs if you need to hire someone to care for dependents | ✅ Mandatory | ❌ Optional |
| Housekeeping & Home Maintenance | Covers help with cleaning, yard work, or household chores you can’t do while injured | ✅ Mandatory | ❌ Optional |
| Death & Funeral | Provides a lump-sum payment to your family and covers funeral costs | ✅ Mandatory | ❌ Optional |
| Education Expenses | Covers lost tuition or other education costs if you can’t continue school | ✅ Mandatory | ❌ Optional |
| Visitor Expenses | Reimburses family members visiting you during recovery | ✅ Mandatory | ❌ Optional |
| Damage to Personal Items | Replaces personal items damaged in the crash (e.g., glasses, clothing) | ✅ Mandatory | ❌ Optional |
What This Means for You
According to Harris, there are several areas in which drivers should pay attention to as Ontario transitions to an Optional Auto Accident Benefits form of coverage. These are as follows:
- Income replacement and non-earner benefits: This coverage provides financial support to a driver if they are unable to work after an injury and do not have any form of employment income. These benefits play an important role in maintaining household stability during the recovery process. Once the new model takes effect, customers must decide whether losing this income would create financial strain.
- Death, funeral, dependent, caregiver, and housekeeping support: These optional auto accident benefits will assist families with any final arrangements. On top of this, it provides help with dependents, caregiving responsibilities and any household tasks. Serious injuries tend to make daily living difficult. Without these benefits, families may face high out-of-pocket costs for services they need during the recovery process.
- Home maintenance and education benefits: This coverage will cover costs such as home upkeep and any expenses that may be school-related. Let’s face it, school and maintaining your home can be pricey. Though these benefits may appear secondary at first glance, removing them can create a financial burden.
- Indexation: Indexation ensures benefits keep pace with inflation during any long recovery periods. When a customer opts out of this option, it may reduce the real value of any financial support over time.
Key Ontario Accident Benefits Changes and Why They Matter
- Insurance pays first for medical care: Your auto insurer will now cover mandatory medical and rehab costs right away, instead of you having to use workplace or private benefits first.
Why it matters: You’ll get faster access to treatment after an accident.
- Risk of not having enough coverage: Many benefits will become optional. Some drivers may reduce coverage to save money, but discover after a crash that they don’t have enough protection.
Why it matters: You could be left without income support or help paying expenses when you need it most.
- Impact on people without their own insurance: Pedestrians, cyclists, and passengers will no longer automatically get many benefits. Their coverage will depend on whether the driver bought optional benefits.
Why it matters: If you don’t own a car, your protection may rely on someone else’s insurance choices.
- More lawsuits likely: With fewer benefits included automatically, more accident victims may sue the at-fault driver to get compensation.
Why it matters: Lawsuits can slow down claims, make them more stressful, and may drive up premiums for everyone.
- More responsibility on drivers and brokers: Drivers will need to review their options closely, and brokers will need to explain the risks of opting out of coverage.
Why it matters: It’s up to you to choose the proper protection — don’t assume you’ll be automatically covered.
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What You Should Do
When your auto policy renews after July 1, 2026, take time to:
- Review your options – Don’t assume your coverage stays the same. Many benefits will disappear unless you opt in.
- Assess your needs – Think about your lifestyle. Do you have dependants? Do you work freelance or rely on one income?
- Compare costs vs risk – Premiums may be lower if you opt out, but weigh the short-term savings against the long-term financial risk.
- Ask questions – Talk to your insurance broker about what’s included, what’s optional, and what’s recommended for your situation.
Work With Your Broker
According to Harris, his biggest piece of advice is to slow down and ask any questions you may have. As always, clients should work with their brokers to understand what each benefit consists of and the consequences of going without.
“Optional accident benefits make up only about 5% of the premium, so the savings are modest,” he says. “Drivers need to consider whether saving that small amount is worth the risk of being underinsured after a collision. For most people, it’s simply not worth it.”
Colin Simpson, the CEO of the Insurance Brokers Association of Ontario (IBAO), touched on the topic last October during a panel discussion at IBAOcon. According to him, the optionality will save drivers in Ontario at most $100 per year.
2026 Ontario Accident Benefits Changes: Final Word
Insurance is about preparing for the unexpected. With these changes, it’s more important than ever to understand your policy and make informed choices. Before you renew, ask yourself: If I were in an accident tomorrow, what protection would I want in place? Not sure where to start? An isure representative can walk you through the options, explain what each benefit means in real-life terms, and help you balance coverage with affordability.
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