More choice, more control: Ontario’s auto insurance reform put you in the driver’s seat

Starting July 1, 2026, Ontario is making auto insurance more flexible. Some accident benefits that were previously included in every auto insurance policy will become optional, giving you more choice to select coverage that fits your needs and budget.

What are Statutory Accident Benefits?

Statutory Accident Benefits (SABS) provide financial support if you are injured in a car accident. These benefits are available regardless of who caused the accident and can cover things like medical treatment, rehabilitation and income if you can’t work because of your injuries. 

What is staying the same?

Standard medical, rehabilitation and attendant care benefits will continue to be included in all auto insurance policies. These benefits help cover essential recovery support after an accident.

You still have the option to purchase additional or increased benefits and coverages, such as supplementary medical, rehabilitation and attendant care, dependant care and indexation benefits.

What is becoming optional?

The following auto insurance accident benefits will become optional: 

• Income replacement: Provides financial support if an accident prevents you from working and earning income.

• Non-earner benefit: Provides financial support if you are unemployed or a student and an accident prevents you from carrying on a normal life while you recover.

• Caregiver benefits: Helps cover caregiving expenses if you or another covered person is injured and unable to care for a dependant, such as a child or aging parent.

• Lost educational expenses: Helps cover certain educational expenses if an accident prevents you from continuing your studies or participating in an education program.

• Visitor expenses: Covers reasonable and necessary expenses incurred by visitors while you or another covered person is recovering from injuries sustained in an accident.

• Housekeeping and home maintenance: Helps cover housekeeping and home maintenance expenses if you or another covered person is unable to perform these tasks due to injuries from an accident.

• Damage to personal items: Helps pay to repair or replace personal belongings damaged in an accident, such as clothing, prescription glasses, or hearing aids.

• Death benefits: Provides financial support to eligible family members if you or another covered person dies as a result of an accident.

• Funeral benefits: Helps cover eligible funeral expenses.
   

Who is covered under Statutory Accident Benefits (SABS)?

Starting July 1, 2026, 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 automobile.

This means that some people, such as pedestrians, cyclists, and certain passengers who may have been covered in the past may no longer be eligible for accident benefits unless they are included in the categories listed above.

What does this mean for you:

If you are an existing customer:
Your current coverage will automatically continue unless you let your broker know you would like to make specific changes to your auto insurance policy. You will need to review and decide whether you would like to keep, add, or remove coverage.

If you are a new customer:
Starting July 1, 2026, new customers may choose which optional accident benefits they would like to purchase. Ask your broker which benefits are included in your quote. You may want to add optional benefits to your policy based on your needs.

If you are a commercial customer or employee:
Speak to your broker to learn more about how this change impacts you or your employees. 
 

What steps should I take? 

1. Review your current coverage (if you are an existing customer):
   Know what benefits you already have today through your auto insurance policy

    

2. Review your workplace or private benefits plan:
   Avoid duplication, you may already have coverage through your workplace, private benefits plan, or life and health insurance providers. 

    

3. Think about your needs:
   Consider which coverage is right for you 

    

4. Speak to your broker:
   They can help explain your options 

Make informed decisions; choose the benefits that best fit your needs.

Quick links

• Statutory Accident Benefits Legislation 

• OAP-1