Ontario's Accident Benefits Changed on July 1, 2026: What Every Driver Should Know

If you drive in Ontario, the accident benefits section of your auto insurance policy is not what it was a few months ago. On July 1, 2026, a package of reforms changed which benefits every policy must include and which ones you now have to choose — and pay for — yourself. Most drivers will not notice anything until a renewal notice arrives, or, worse, until after a collision. Here is what changed and what it means for you.

First, what accident benefits actually are

Accident benefits are the part of your own auto policy that pays for your recovery after a collision, regardless of who caused it. They are separate from any lawsuit against an at-fault driver, and they are governed by a regulation under the Insurance Act called the Statutory Accident Benefits Schedule, or SABS. That basic structure has not changed. What changed is how much of it is automatic.

What is still in every policy

Three benefits remain mandatory in every Ontario auto policy: medical benefits, rehabilitation benefits, and attendant care. These cover the treatment OHIP does not — physiotherapy, chiropractic care, psychological treatment, assistive devices — and, where injuries are serious, the cost of someone to help with personal care. Anyone injured by a motor vehicle can still access these, including passengers, pedestrians and cyclists.

The nine benefits that became optional

Everything else in the accident benefits package is now something you opt into. As of July 1, 2026, these coverages are optional:

• Income replacement — replaces part of the income you lose because you cannot work.

• Non-earner benefit — support if you are a student or not working and the accident keeps you from your normal life.

• Caregiver benefit — helps pay for the care of a child, aging parent or other dependant you normally look after.

• Lost educational expenses — tuition, books and similar costs if you cannot continue your studies.

• Expenses of visitors — reasonable costs for close family who visit you while you recover.

• Housekeeping and home maintenance — help with the household tasks you can no longer do.

• Damage to personal items — clothing, prescription eyewear or hearing aids damaged in the crash.

• Death benefits — compensation for certain family members if a covered person dies.

• Funeral benefits — help with some funeral costs.

Income replacement is the one to think hardest about. If you are working and an accident keeps you off the job for months, that is the coverage that pays the mortgage, and nothing else on the list does the same job. Supplementary medical, rehabilitation, attendant care, dependant care and indexation benefits remain available as buy-ups, as they were before.

A quieter change: who the optional benefits cover

Even if you buy every optional benefit, they now reach a narrower group of people. Optional accident benefits apply only to the named insured, that person's spouse, dependants of the named insured or the spouse, and anyone listed in the policy as a driver of the vehicle.

That is a real narrowing. A passenger who is not a family member or a listed driver, and a pedestrian or cyclist struck by a car, can still claim the mandatory medical, rehabilitation and attendant care benefits — but not the optional ones. If someone regularly drives your car, it is worth confirming they are actually named on the policy.

Your existing policy does not change on its own

If you already had a policy, it renews with the same coverages and limits you had before, unless you agree in writing to change them. Nothing is quietly stripped out at renewal. The reverse is also true: if you are offered a lower premium in exchange for dropping coverages, that is a decision with real consequences, and it deserves more than a quick yes on the phone.

If you have an open claim from an accident that happened before July 1, 2026, these changes do not affect it. The coverage in place on the day of the accident is the coverage that applies — which is also why any change you make now only matters for accidents that happen afterwards.

Auto insurance now pays before your work benefits

One more shift is easy to miss. For medical and rehabilitation costs arising from an auto accident, your auto insurer now pays first, ahead of a workplace or private health plan, with medication costs the exception. That preserves your group benefits for other things — but it also means you should report treatment to your auto insurer rather than quietly running it through work coverage.

After a collision: the deadlines that matter

Report the accident to your insurer, agent or broker within seven days. Your insurer will then send you an application package for accident benefits, with its own return deadline printed on it. Fill it in promptly, keep a copy of everything, and do not wait to see whether you feel better first — late notice is one of the most common avoidable problems in these claims.

If your insurer says no

Insurers do refuse or stop benefits. When they do, they must give you written notice with reasons. If you disagree, you can apply to the Licence Appeal Tribunal's Automobile Accident Benefits Service, and you have two years from receiving that written denial to file. The tribunal can sometimes extend the deadline, but it is not something to rely on — treat two years as a hard line. The filing fee is $106.

That tribunal decides entitlement to accident benefits only. It does not deal with damages for pain and suffering, damage to your vehicle, or who was at fault in the collision. Those are separate claims with separate deadlines of their own.

A short checklist before your next renewal

• Find the accident benefits page of your policy and read what you actually have.

• Check your workplace or private health plan so you are not paying twice for the same thing.

• Consider income replacement on its own terms — a private plan rarely fills that gap.

• Confirm that everyone who regularly drives the car is listed on the policy.

• Ask your broker what each optional coverage costs before you decline it. Some are inexpensive.

• Revisit the choice when your life changes — a new job, a baby, a parent moving in.

Ken Wise & Associates acts for people making accident benefits claims and disputing denials at the Licence Appeal Tribunal.

This article is general information only and is not legal advice. Reading it does not create a solicitor-client relationship. Every situation turns on its own facts — speak with a qualified Ontario lawyer or licensed paralegal about yours.