Ontario Auto Insurance Reform 2026

⚠️ Warning – Some Accident Benefits Become Optional on July 1, 2026 in Ontario.

Starting July 1, 2026, 12 Accident Benefits will become ‘Top-Up’ options for Ontario auto policy holders. On average these ‘Top-Up’ accident benefits will add an additional $1 to $3* dollars per coverage, per month to insurance premiums.

Whether you choose to ‘Top-it-Up’ OR ‘Give-it-Up’ it’s important to be aware of how these optional coverages can each impact your personal finances and recovery if you’re injured in an automobile accident.

Top it Up

Opt-In and keep specific Accident Benefits.

Give it Up

Choose some Accident Benefits to drop.

Take Our Online ‘Top it Up’ or ‘Give it Up’ Check-up

A simple way to determine what coverage matters most to you.

Take the check-up
Take the Check-up
Scenerio 1

Quiz Instructions

+


Mouse over and click on "Top it Up" and/or "Give it Up" to see what either option does. Then select the option that feels right for you. There are 12 questions, one for each of the optional accident benefits.

 


This is an example of what topping it up looks like

 

 


This is an example of what happens if you give it up

TAKE THE CHECK-UP
Take the Check-up

On the spot knowledge. Down-to-earth guidance. Zero confusion.

Accident Benefits

(As of July 1, 2026)

2 Mandatory Benefits

  • Attendant care benefits help pay for a caregiver or aide if your injuries prevent you from caring for yourself. This support may be provided at home or in a care facility and can include assistance with activities such as bathing, dressing, mobility, and daily living tasks. These benefits ensure you receive necessary personal care during recovery.

  • Medical and rehabilitation benefits help pay for treatment and recovery expenses after an accident. This may include services such as physiotherapy, chiropractic care, occupational therapy, medical equipment, and certain prescriptions that are not covered by OHIP or other health plans. The goal is to help you regain mobility, independence, and function during recovery.

12 Optional Benefits

  • Income replacement benefits may provide weekly payments if injuries prevent you from working after an automobile accident. The benefit helps replace a portion of your lost income while you recover and are unable to perform your job duties. This benefit is particularly important for individuals who rely on employment income.

  • Non-earner benefits provide financial support for individuals who are not employed but are unable to maintain their normal daily activities due to injuries.

    This benefit may apply to students, unemployed individuals, stay-at-home parents, or retirees whose lifestyle is significantly affected by the accident.

  • Caregiver benefits help cover the cost of replacing caregiving responsibilities if the injured person is the primary caregiver for dependants. This may include arranging childcare or assistance for an aging parent or family member with special needs who relies on the injured person for care.

  • This benefit helps pay for household services that the injured person cannot perform due to their injuries. Examples may include cleaning, laundry, yard work, or other basic home maintenance tasks.

  • Dependant care benefits help cover additional expenses for employed individuals who care for children, a spouse, aging dependants, or someone with special needs. If injuries make it difficult to manage caregiving responsibilities outside work hours, this benefit can help offset those extra costs.

  • This benefit helps cover certain education-related costs if a student must withdraw from or delay a program due to accident-related injuries. It may help offset tuition or program costs that are lost because studies must be postponed.

  • Visitor expenses help cover certain costs for family members or loved ones visiting an injured person during extended treatment or recovery. This may include travel or accommodation costs in situations where recovery requires ongoing medical care away from home.

  • This benefit helps cover damage to personal belongings caused by the accident.

    Examples may include glasses, mobility devices (such as wheel chairs and walkers), hearing aids, clothing, phones, or other items damaged during the collision.

  • Death benefits provide a lump-sum payment to eligible surviving family members if an insured person dies as a result of a motor vehicle accident. The benefit is intended to provide immediate financial support during a difficult time.

  • Funeral benefits help cover certain funeral and final expenses related to a fatal motor vehicle accident. This can reduce the financial burden on surviving family members when arranging final services.

  • Drivers may increase the standard limits for medical treatment, rehabilitation, and attendant care. Higher limits provide additional protection in the event of a serious injury requiring extended treatment or long-term care.

  • Indexation benefits adjust certain weekly payments and coverage limits over time to reflect inflation. This helps maintain the real value of benefits if recovery extends over a longer period.

mythsign

“Opting out of Accident Benefit coverage options will save me a lot of money, and the risk is small.”

facesign

Ontario’s Auto Reform shifts more responsibility onto the driver to select their own coverage – often only saving them a few dollars per month – while increasing the real possibility of financial hardship after a serious auto accident.

mythsign

“If I’m seriously injured in a car accident, the at-fault driver pays.”

facesign

Ontario operates under a no-fault Accident Benefits system. This means you are only covered for the benefits you pay for on your policy, regardless of who caused the accident.

mythsign

“I don’t need any of the optional Accident Benefits because I have OHIP.”

facesign

OHIP will not cover income replacement, and many other rehabilitation services, home modifications, or attendant care following an auto accident. Optional accident benefits can help cover some of these expenses.

mythsign

“Mandatory Medical and Rehabilitation Benefits mean all related recovery costs are fully covered.”

facesign

Not true.

Mandatory Medical and Rehabilitation coverage limits are capped. Extended and specialized care may require increased coverage limits. Talk to a broker if you’d like to increase your limits.

mythsign

<em>“When I add Income Replacement Benefits – my full paycheck will be covered if I’m injured in a car accident.”</em>

facesign

<strong>Not necessarily.</strong>

Income Replacement Benefits have payout limits so it is important to double check your coverage.

There are options to pay for increased levels of income replacement for an additional premium.

Frequently Asked Questions

Overview

  • Ontario Auto Reform is a provincially mandated change to how accident benefits are structured in auto insurance policies. It moves Ontario toward a choice-based model in which many benefits can be added or removed based on an auto policy holder’s needs.

  • The reforms are expected to take effect on July 1, 2026. Policies written or renewed after that date may reflect the new optional benefit structure. We recommend reviewing your coverage with a broker to avoid surprises at renewal and make sure your coverages reflects your needs.

  • The province’s goal is to introduce a more flexible, choice-based model. This allows drivers to tailor their coverage to their situation and avoid paying for benefits they feel are irrelevant, or coverages they may already have through workplace private plans. The reforms are overseen by the Financial Services Regulatory Authority of Ontario (FSRA).

  • No, three accident benefits will remain mandatory after the July 1st changes: medical, rehabilitation, and attendant care coverage. However, the majority of accident benefits will now be optional for Ontario auto policy holders.

  • Medical and rehabilitation benefits remain mandatory, covering treatment expenses such as physiotherapy, prescriptions, and other recovery-related costs not covered by OHIP. Attendant care benefits also remains mandatory, helping cover the cost of a home or facility-based aide or caregiver if you’re unable to care for yourself following an auto accident.

  • Accident benefits that become optional after July 1, 2026, include income replacement, non-earner benefits, caregiver benefits, lost educational expenses, housekeeping and home maintenance, damage to personal items, dependent care benefits, visitor expenses, funeral benefits, death benefits, and indexation benefits.

  • If you choose not to add optional accident benefits, you will not receive those protections (or any associated payments) after an accident. Choosing minimum coverage options means accepting greater personal financial responsibility in the event of an auto accident.

Cost & Premium Savings

Decision Support

  • Review how much income your employer plan replaces, and for how long. Many workplace plans replace 60–70% of income and may include waiting periods. If there’s a delay before benefits begin or a coverage cap, accident benefits can help bridge that gap.

  • Drivers who are self-employed, paid hourly, or on commission, or in single-income households, should seriously consider keeping income replacement benefits. If your income depends directly on your ability to work, removing wage protection increases your financial risk after an accident.

  • Possibly. Workplace plans vary. Some don’t cover certain therapies, have benefit caps, or exclude caregiving support. Accident benefits can supplement workplace coverage rather than duplicate it. A short review of your coverage can help prevent overlap or gaps.

  • The safest option is to keep or enhance your accident benefits coverage, so income and care support remain available after a serious injury. It may cost slightly more per month, but it reduces financial uncertainty during recovery.

  • Failing to review accident benefit options could mean losing protections unintentionally. We strongly encourage you to speak with a licensed insurance broker before opting to remove any optional accident benefit coverages from your policy.

  • Ask yourself three simple questions:

    1. If I couldn’t work for 3-6 months, how would I pay my bills?
    2. If I needed help at home, who would provide it?
    3. Do I have savings to cover unexpected recovery costs?

    Your answers will help determine your accident protection priorities.

Technical Clarifications

  • No. The reform does not change third-party liability coverage. Liability coverage continues to protect you if you are legally responsible for injuring someone else or for damaging their property.

  • No. Collision and comprehensive coverages are not affected by the 2026 Ontario Auto Reform.

    Those coverages relate to damage to your vehicle, not injury-related accident benefits.

  • Yes. The reform applies to Ontario auto insurance policies province-wide. However, the impact of this change depends on the coverage options you decide to select or remove following July 1.

  • Not entirely. While who is covered by your insurance policy will automatically change on July 1, 2026, the accident benefits that you have on your policy will remain the same unless you decide to remove them or modify your coverage limits.

  • The reform is intended as a long-term structural shift toward a choice-based model. Future governments or regulators could introduce adjustments, but the July 2026 framework is designed to remain in place unless formally amended.

  • No. The reform focuses on accident benefits, which are no-fault benefits paid by your insurer. Your legal rights regarding liability claims remain governed by Ontario’s existing auto insurance laws.

  • No. Policyholders can choose to remove optional accident benefits from their policies beginning July 1st. They do not need to wait until policy renewal to make these changes, as long as it is after July 1st. Additionally, who is covered under your auto policy will change automatically on July 1st.

  • Yes, in most cases you can adjust optional accident benefits at renewal or mid-term, subject to underwriting rules.

‘Top it Up’ OR ‘Give it Up’

Check-up

  • A Simple Online Tool
  • Lifestyle Questions & Scenarios
  • Automated Coverage Recommendations

Chat with a

Broker

  • On the spot knowledge.
  • Down-to-earth guidance.
  • Zero confusion.

*Cost savings referenced on this page are estimates provided for illustrative purposes only and are not guaranteed. Actual premiums and potential savings will vary by insurer, coverage selections, and individual circumstances. Pricing information is subject to change as insurers finalize their rates. Optional accident benefit coverages can provide valuable financial protection in the event of a serious loss. We recommend speaking with a licensed insurance professional before making any decisions about your coverage.