Ontario’s July 2026 auto insurance changes: what is optional now, and how to decide

On July 1, 2026, the biggest change to Ontario auto insurance in years took effect. Accident benefits, the part of your policy that helps you if you are hurt in a collision, now work differently. Some protection is still mandatory. A lot of it is now your choice.

Here is what changed, in plain language, and the questions to ask before you change anything.

What is still mandatory

Every Ontario auto policy still includes medical, rehabilitation and attendant care benefits. If you are injured, these help pay for treatment, therapy and care. You can still buy higher limits than the standard amount.

What is now optional

Insurers must offer these benefits, but you decide whether to buy them:

• Income replacement, if you cannot work after a collision
• Non-earner benefits, for people who were not working
• Caregiver benefits, if you cared for someone and can no longer do so
• Housekeeping and home maintenance
• Death and funeral benefits
• Lost educational expenses, expenses of visitors, damage to personal items, dependant care and indexation

Who optional benefits cover

This is the change people miss. Optional benefits cover the named insured, their spouse, their dependants and drivers listed on the policy. A passenger or pedestrian who is not part of your household can only claim optional benefits through their own policy.

So if someone in your home drives but is not listed, now is the time to fix that.

Your auto insurer now pays first

For collisions on or after July 1, 2026, your auto insurer is the first payer for medical and rehabilitation costs (medication is the exception). You no longer have to use up your workplace or extended health plan first. This applies whether or not you change anything on your policy.

How to decide

1. Check what you already have. Look at disability coverage through your employer, union or a private plan. How much of your income does it replace, for how long, and does it end if you change jobs?
2. Think about who depends on you. If your household relies on your income, or you care for children or a family member, income replacement and caregiver benefits may matter more.
3. List every driver. Make sure everyone who drives your vehicles is on the policy so they can access optional benefits.
4. Ask what each option costs. How optional benefits are priced varies by insurer, so ask your broker what adding or removing each one would change.
5. Talk it through. Do not remove coverage just to lower your premium without knowing what you would give up.

Three of our brokers, Paul, Carlos and Susy, are also licensed life insurance advisors, so they can look at the disability and life side of this decision in the same conversation.

Every situation is different. Call us at 519-623-7031 and we will go through your policy with you, line by line.

Sources

• FSRA: Optional and extra coverage
• O. Reg. 383/24 (amendments to the Statutory Accident Benefits Schedule)
• RIBO: Ontario auto insurance reforms industry FAQ

This article is general information about insurance in Ontario and is not advice for your specific situation. Your coverage depends on your policy wording.