Are Accident Benefits Optional in Ontario Now?
Until now, drivers have not had to consider which accident benefits were covered under their automotive insurance policy. This is about to change with the new 2026 Ontario Auto Insurance Reform. Starting July 1, 2026, most benefits that were previously included in every policy will become optional, giving drivers more control over their personal coverage.
This shift changes Ontario’s auto insurance from a standardized package to more of an “à la carte” model, where drivers can choose which protection they want to include, and which they don’t.
Benefits That Remain Mandatory
After July 1, 2026, only a few core SABS will automatically be included in every auto insurance policy in Ontario. These benefits remain mandatory because they provide essential support for accident recovery:
Medical Benefits
Coverage for medical treatment related to injuries from a car accident.
Rehabilitation Benefits
Covers therapy, rehabilitation programs, and recovery services after an accident.
Attendant Care Benefits
Provides financial support to caregivers assisting a person seriously injured in a collision.
What Accident Benefits Should You Keep?
Starting in July 2026, many accident benefits that were previously included by default will become optional add-ons. However, removing them solely because they are optional might not be the best choice. Many drivers may prefer to keep certain benefits, as they offer vital financial protection in case of a serious accident.
These benefits will only apply to the named insured, their spouse, and dependents, as well as any other individuals specified as drivers on the policy. People without their own policies, including pedestrians, cyclists, and even your own passengers, might be left without coverage should they be involved in an accident.
Optional Accident Benefits Ontario:
- Income Replacement Benefits (IRB) – Replaces up to 70% of lost income (up to $400 per week) if you cannot work after an accident.
- Non-Earner Benefits – Provides weekly payments for people who are unable to carry on normal activities due to injuries but are not employed (such as students or retirees).
- Caregiver Benefits – Helps cover the cost of childcare or caregiving if the injured person normally provides care to dependents.
- Housekeeping and Home Maintenance – Covers costs of help for household tasks that injuries prevent you from completing.
- Lost Educational Expenses – Provides support for students who must pause their studies due to an accidental injury.
- Visitor Expenses – Covers travel and accommodation costs for family visiting an injured person.
- Damage to Personal Items – Reimburses items like clothing, glasses, or hearing aids damaged in an accident.
- Death and Funeral Benefits – Provides financial support to family members if an accident results in death.
How This Reform Affects Your Insurance Premium
The Ontario accident benefits changes are intended to provide flexibility and potential premium savings by allowing you to remove benefits you may already have through workplace insurance or disability plans.
Actual savings may be relatively small compared to the protection they could provide. This is why it is even more important to speak with your trusted insurance broker to weigh your options.
What Drivers Should Do Before Their 2026 Renewal
If you have an existing policy that will renew after July 1, 2026, it will renew with the same coverage and limits unless change requests are made in writing. New policies will be quoted with the mandatory benefits and optional benefits. It is important to be prepared so that you can make the right choices for your needs:
- Review your Ontario car insurance coverage to learn about your accident benefit coverage and premiums.
- Understand what coverage you might lose if you opt out.
- Consider other protections you may have through workplace or disability insurance plans.
Speaking with an Ontario auto insurance broker can help ensure you’re not sacrificing essential protection for small savings. It is more important than ever to work with a broker who will thoroughly review your coverage before you opt out of anything, including comparing the cost of keeping the accident benefits to the potential financial risk of removing them, if additional coverage isn’t available.
Reach out to one of Duliban’s insurance advisors today to discuss your coverage and ensure you’re protected where it matters most.
