As of July 1st, some upcoming changes to Ontario’s accident benefits will reduce drivers’ ability to access accident benefits coverage, something many take for granted. These changes bring significant changes to the benefits available to Ontarians and their insurance policies. So, what exactly do these changes entail? Who will they affect? We dive in below.
What Are Ontario Accident Benefits?
Under Ontario’s Statutory Accident Benefits Schedule (SABS), anyone injured in a motor vehicle accident—regardless of who caused it—is entitled to specific supports through their auto insurance policy. These benefits are intended to help cover recovery and financial losses, including:
- Attendant Care, Medical and Rehabilitation Benefits
- Income Benefits in the event you are injured and unable to work
- Caregiver benefits if you are unemployed and are unable to carry on an everyday life
- Death benefits for your family in the event you pass away from the accident
- Funeral benefits to assist your family in the event you pass away from the accident
- Benefits of lost items, such as clothing, eyewear, hearing aids, etc
- Visitor expenses for your family in the event they visit you in the hospital following the collision
These changes will restrict optional benefits to the following:
- The named insured
- The named insured’s spouse
- Dependents of the named insured and the named insured’s spouse
- Any people specified in the policy as drivers of the insured vehicle
So, what exactly is changing? Let’s take a look at some of the changes to Accident Benefits in Ontario.
What’s Changing in 2025?
As of July 1, 2025, the only mandatory accident benefits that must be included in your Ontario auto insurance policy will be:
Medical, Rehabilitation, and Attendant Care Benefits
Everything else—including income replacement, caregiver benefits, and death and funeral benefits—will become optional. To maintain the current level of coverage, you will now need to pay extra and opt in.
These changes are part of Ontario Regulation 383/24, passed in October 2024, which aims to offer more “consumer choice” and potentially lower base insurance premiums. However, many are worried it will result in Ontario motorists being left without essential benefits during rehabilitation. This is also because the risk for damages transfers to the at-fault tort system, or the public purse via OHIP, welfare, or ODSP.
Who Will Optional Benefits Cover?
The accident benefits changes also restrict who can be covered under optional benefits. These will only apply to:
- The named insured
- The spouse of the named insured
- Any dependents of the named insured or their spouse
- Listed drivers on the insurance policy
That means friends, extended family members, or unlisted household members may no longer qualify for coverage, even if they’re injured in your vehicle.
The Push for Affordability—and the Risks
This regulatory change is designed to reduce auto insurance premiums, particularly for Ontarians seeking affordable options. However, many drivers—especially those purchasing insurance online—may not fully understand what coverage they’re losing by default.
With the rise in digital quote tools, Ontarians often choose the lowest-cost policy without consulting a broker. As a result, many people could find themselves underinsured when it matters most.
How will pedestrians be affected?
Pedestrians will likely be at a greater risk than ever before. This includes cyclists, pedestrians, and individuals in vehicles who are otherwise uninsured. If a party strikes them without optional benefits, they will be stuck without a source of income. This is the case despite not being at fault for a collision.
The financial hardship for pedestrians and collision victims is heightened by the fact that the court system is overburdened. This will result in deserving claimants having their cases delayed for years. The concern here is that victims may face financial difficulties as a result of a crash they were not responsible for.
What Should You Do Regarding These Accident Benefits Changes?
The 2025 Ontario Accident Benefits changes make it more important than ever to review your auto insurance policy with a broker. Understanding what’s included—and what’s no longer guaranteed—can protect you and your family from unnecessary financial risk in the event of a collision.
Key Takeaways:
- As of July 1, 2025, only Medical, Rehabilitation, and Attendant Care Benefits are mandatory.
- All other benefits (like income replacement, caregiver, and death benefits) are optional add-ons.
- Coverage is now limited to the named insured, spouse, dependents, and listed drivers.
- Pedestrians and uninsured individuals are at greater risk of going without support.
- Consult with your broker to ensure you have the necessary protection.
Ontario Accident Benefits Changes: Conclusion
All in all, contacting your insurance broker once these changes are made is crucial to making sure you remain covered in the event of an accident. As always, staying safe on the road is the best thing you can do to avoid accidents and any pricey insurance premiums. If you have any questions regarding auto insurance, don’t hesitate to reach out to us at isure! Contact us or request a quote today!
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