Thinking of dropping income replacement? Check your workplace plan first
Income replacement is now optional on Ontario auto policies. A checklist for comparing it with your workplace or private disability coverage before you decide.
By Monteiro Insurance Brokers. . 4 minute read.
Since July 1, 2026, income replacement is an optional benefit on Ontario auto policies. Some drivers will be fine without it because they have strong disability coverage elsewhere. Others will be left with a gap they did not know about.
Before you remove it, pull out your workplace benefits booklet or private disability policy and check these points.
Your disability coverage checklist
- Do you have short-term and long-term disability? Many plans have one but not the other.
- How long is the waiting period? Some long-term plans do not start paying for months.
- How much does it pay? Look for the percentage of income and any monthly maximum.
- How long does it pay? A few weeks, two years or to age 65 make a big difference.
- How is disability defined? Some plans pay if you cannot do your own job; others only if you cannot do any job.
- Does it cover injuries from a car accident? Most do, but check for exclusions or rules about other coverage.
- What happens if you leave your job? Group coverage usually ends when your employment does.
- Are you self-employed or between jobs? If so, you may have no disability coverage at all.
When income replacement may matter most
- You are self-employed, a contractor or work without benefits
- Your household depends heavily on your income
- Your workplace plan has a long waiting period or a low maximum
- You expect to change jobs or retire soon
We can look at both sides
Most property and casualty brokers can explain your auto options but have to refer you elsewhere for disability and life questions. At Monteiro, Paul, Carlos and Susy hold life licences as well, so they can review both sides with you.
This article is general information, not advice for your situation. Call 519-623-7031 to review your coverage with a licensed broker.
Sources
This article is general information about insurance in Ontario and is not advice for your specific situation. Your coverage depends on your policy wording.