Accident benefits are changing in Ontario in 2026

Don’t Navigate the 2026 Insurance Changes Alone

With Ontario’s auto insurance shifting to an à la carte system, your coverage needs are about to change. At Thinkinsure, our licensed brokers work for you, not the insurance companies. We’ll help you review your coverage and ensure you don't lose vital protection.

Get Started

What will become optional?

Many insurance benefits that are currently included by default will soon transition to optional endorsements or riders, commonly known as "add-ons." It's essential to understand these changes and decide whether to opt in or opt out of these benefits, which include:

• Income replacement benefit: If you cannot work after an accident, this benefit compensates you for a portion of your lost income. The standard benefit covers 70% of your gross weekly income, up to a maximum of $400 per week.
• Caregiver benefit: If you are a full-time caregiver for dependents and are unable to continue due to catastrophic injuries, this benefit reimburses you for the costs associated with hiring help.
• Housekeeping and home maintenance: This benefit assists with expenses related to managing your household duties if your injuries prevent you from doing so. It is typically available only for catastrophic injuries.
• Death and funeral benefit: This benefit provides a lump sum payment to your spouse and dependents, along with financial assistance for funeral expenses, if you die due to an auto accident.
• Non-earner benefit: If you're not employed but are fully unable to live a normal life after an accident (for instance, if you're a student or retiree), this benefit offers $185 per week for up to two years.

With these changes, the default, least expensive policy will provide significantly less coverage than the current options, while achieving only a 5% cost reduction.

Consequently, drivers may risk losing critical protections for minimal savings. It’s crucial to carefully review these changes and consider your coverage options to ensure financial security and adequate support in the event of an accident.

The dangers of being under-insured

The insurance reforms are framed as a way to offer consumers more choices in spending, rather than as a means of achieving significant savings.

However, savings from opting out of coverages are often minimal compared to the significant financial risks of being underinsured. While lower premiums may seem attractive, inadequate coverage can lead to devastating costs.

An example of the risks of being under-insured

In 2026, a self-employed tradesperson earning $1,800 per week (totalling $93,600 annually) could face a significant financial loss if a collision prevents them from working for 6 months. Specifically, they may lose $46,800 in income during this period. With standard benefits, they would only receive $10,400 due to a weekly benefit cap of $400. This results in a shortfall of $36,400, making it difficult to cover bills and mortgage payments.

If they decide to opt out of income replacement to save on premiums, they would receive $0, further worsening their financial situation.

Even the standard $400 weekly benefit could provide essential relief, and enhanced coverage is available to alleviate some of the financial burden.

Ultimately, the risks of being underinsured far outweigh the short-term savings from opting for lower premiums. The decision may be yours, but understanding the potential consequences is crucial for making an informed choice.

Are You Paying Too Much for Ontario Auto Insurance?

The cheapest policy in 2026 might leave you dangerously underinsured. Compare quotes from over 50 of Canada's top providers in just minutes. We’ll show you the most affordable rates for the exact level of protection your family needs.

Get Started

Who is most at risk for these changes?

While opting out of insurance saves money immediately, the financial risks must be understood. This choice carries risk for everyone, but unexpected events can be devastating for those with limited financial flexibility.

• Self-employed individuals and gig workers: Often lacking workplace disability plans, these individuals depend entirely on their ability to work for income. E-bikes and scooters, commonly used for work, add financial risks if accidents occur without adequate coverage.
• Students and retirees: The non-earner benefit protects these groups, but accidents can disrupt studies or deplete retirement savings. E-bike and scooter riders here face less protection than car drivers.
• Stay-at-home parents: Their essential unpaid labour means that caregiver and housekeeping benefits can be crucial if they are injured. Those using e-bikes and scooters may find themselves at greater risk with less coverage available.
• Low-income earners: While tempted to lower premiums, this group has the least capacity to absorb injury costs. E-bike and scooter riders might be particularly vulnerable due to insufficient protection.
• E-bike and scooter riders to receive fewer protections: Currently, riders in collisions with vehicles can access no-fault benefits. Post-2026 reforms, these protections will only apply to insured individuals and their families, leaving e-bike and scooter riders with only medical coverage. This creates significant gaps without litigation or additional coverage.

Don't compromise your financial future for minimal short-term gain

The move to optional accident benefits in Ontario shifts the responsibility for maintaining adequate protection firmly onto the consumer. While the allure of lower premiums is real, the financial security provided by comprehensive accident benefits far outweighs the small monthly savings.

Use these changes as motivation to compare auto insurance quotes today and ensure your policy includes the essential accident benefits to fully protect yourself and your family against the unexpected.