Ontario’s auto insurance reforms: Everything you need to know

2026 Ontario auto insurance reform

As of July 1, 2026, Ontario’s Statutory Accident Benefits Schedule (SABS) will undergo several important updates. The SABS outlines the accident benefits - or insurance coverage - included in Ontario auto insurance policies. These updates stem from province wide reforms introduced by the Ontario government. As a result, certain accident benefits that were once mandatory and automatically included will become optional.

Policies will automatically renew with the same SABS coverage, but customers will have the opportunity to make changes if they wish. While the Ontario government’s reforms offer more choice, reviewing your coverage carefully is essential to ensure it meets your needs.

What are Statutory Accident Benefits?

Statutory Accident Benefits (also referred to as accident benefits) provide financial support if you’re injured in a car accident - no matter who caused it. These benefits may help cover medical care, rehab and even income if you can’t work because of your injuries.

What’s staying the same?

Every auto insurance policy will still include standard medical, rehabilitation and attendant care benefits. These help support your recovery after an accident.

You’ll continue to have the option to buy additional or increased benefits, such as supplementary medical, rehabilitation and attendant care benefits.

What’s changing?

1. Starting July 1, 2026, the following auto insurance accident benefits will become optional:

• Income replacement: This benefit may compensate you and other covered persons for lost income.
• Non-earner benefits: This benefit may provide compensation if you and other covered persons are completely unable to carry on a normal life.
• Caregiver benefits*: This benefit may provide compensation for some expenses incurred if a covered person has been injured and cannot continue as the main caregiver for a member of the household who is in need of care.
• Housekeeping and home maintenance*: This benefit may provide compensation if you and other covered persons suffer a substantial inability to perform the housekeeping and home maintenance services that you or they normally performed before the accident.
• Lost educational expenses: This benefit may provide compensation if you and other covered persons are unable to continue a program of elementary, secondary, postsecondary or continuing education as a result of an accident.
• Expenses of visitors: This benefit may provide compensation for reasonable and necessary expenses incurred by visitors if you and other covered persons sustain an impairment as a result of an accident.
• Damage to personal items: This benefit may provide compensation if you and other covered persons sustain damage to clothing, prescription eyewear, dentures, hearing aids, prostheses and other medical or dental devices that were lost or damaged as a result of the accident.
• Death benefits: This benefit may pay money to some members of the family if you or other covered persons has been killed.
• Funeral benefits: This benefit may pay for some funeral expenses.

*Note: Customers may select between coverage in the case of “catastrophic impairment” or “an impairment.” Speak with your broker to determine which options are best for you.

2. Who is covered under Statutory Accident Benefits (SABS)

Starting July 1, 2026, the newly optional benefits under your auto policy will only apply to:

• The named insured
• The spouse of the named insured
• Dependants of the named insured and of the named insured’s spouse
• Persons specified in the policy as drivers of the insured automobile

Note: Changes to optional accident benefit coverage made by the named insured will extend to all individuals covered by the policy. Prior to updating coverage, it’s important to review these benefits and understand how adjustments could affect everyone insured.

Who will not be covered?

Individuals like pedestrians, cyclists and some passengers will no longer be eligible for optional accident benefits unless they have their own auto insurance policy with optional coverage in place.

What does “First Payor” mean and why is it important?

Starting July 1, 2026, your auto insurer will be responsible for paying medical and rehabilitation costs first, ahead of workplace or private health coverage. This helps minimize administrative steps and allows you to access treatment faster.

What this means for you

Your policy will renew with the same coverage you have today unless you choose to decline or change your benefits. You have the availability to make these changes effective July 1, 2026 onward.

If you’re thinking about changing your optional accident benefits coverage, your broker can walk you through the available options and help you decide what’s best for your needs.

The new accident benefits take effect July 1, 2026. Until then, take time to review your coverage and consider whether it still meets your needs. Also check whether your workplace or private benefits already offer similar protection.

If you’re a commercial customer

Check with your broker to understand how these changes may affect you, your employees and your business.

Quick links

• Statutory Accident Benefits Legislation
• OAP1-N3

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Disclaimer The descriptions of statutory accident benefits contained in these documents provide only a summary of the benefits set out in Ontario Regulation 34/10 (the “SABS”). Do not rely solely on this summary; for complete details, refer directly to the SABS and discuss with your broker.