Reviewed September 8, 2026 | Ontario
Your Ontario auto insurance renewal arrives, and this time there is a new question behind the price: which accident benefits do you actually want on your policy? Since July 1, 2026, Ontario has made most statutory accident benefits optional.
But there is an important detail that can easily get lost in the headlines. If you already had an Ontario auto policy, your existing accident-benefit coverage does not simply disappear at renewal. Your current coverage and limits continue unless you and your insurer agree in writing to change them.
What Changed July 1?
Ontario changed the Statutory Accident Benefits Schedule, commonly called SABS, on July 1, 2026. These benefits can provide support after an auto accident regardless of who caused it.
Under the new structure, only standard medical, rehabilitation and attendant care benefits remain mandatory. Other accident benefits can now be selected based on the policyholder’s needs.
Medical, rehabilitation and attendant care benefits remain part of Ontario auto policies.
Income replacement and most other accident benefits can now be selected or declined.
| Accident Benefit | After July 1, 2026 | What It Can Help With |
|---|---|---|
| Medical, Rehabilitation & Attendant Care | Mandatory | Treatment, rehabilitation and certain personal-care needs after an accident. |
| Income Replacement | Optional | Income lost when an eligible covered person cannot work because of an auto accident. |
| Non-Earner | Optional | Financial support for certain eligible people who cannot carry on a normal life after an accident. |
| Caregiver | Optional | Certain caregiving expenses when an eligible covered person can no longer provide care. |
| Lost Educational Expenses | Optional | Certain education costs lost because an accident prevents attendance. |
| Visitor Expenses | Optional | Certain reasonable expenses incurred by qualifying visitors after an injury. |
| Housekeeping & Home Maintenance | Optional | Certain costs when an eligible covered person cannot perform usual household tasks. |
| Damage to Personal Items | Optional | Certain damaged items such as clothing, prescription eyewear or hearing aids. |
| Death & Funeral | Optional | Certain payments to eligible family members and certain funeral expenses. |
Supplementary medical, rehabilitation and attendant care coverage, dependant care and indexation can also be optional coverage choices. Exact limits, combinations and available options can vary by insurer.
You can review the current list directly on the FSRA optional coverage page.
Renewal vs New Policy
This is where the 2026 change becomes much easier to understand. Existing customers and people starting new policies are not in exactly the same position.
Existing Policy
If your policy renews on or after July 1, 2026, your existing coverages and limits continue at renewal unless you and your insurer agree in writing to remove or change them.
In other words, doing nothing does not automatically strip the optional benefits you already had.
New Policy
If you start a new Ontario auto policy on or after July 1, 2026, only the mandatory accident benefits must automatically form part of the policy.
Ask which optional accident benefits and limits have been included in every quote you compare.
Important: FSRA says existing policies must renew with the same coverage and limits as the expiring policy unless the customer agrees to changes in writing.
Who Is Covered?
The July 2026 reform changed more than which benefits are optional. It also changed who can receive those optional benefits under an Ontario auto policy.
Optional accident benefits now apply to:
- The named insured.
- The named insured’s spouse.
- Dependants of the named insured or their spouse.
- People specifically listed on the policy as drivers of the insured vehicle.
This matters for passengers, pedestrians and cyclists. Mandatory accident benefits can still apply, but optional benefits may not be available through a particular policy unless the injured person falls within one of the groups above.
The transition rule is set out in Ontario Regulation 383/24.
Before Removing Coverage
The fact that a benefit is optional does not mean it is unnecessary. It means Ontario drivers now have more decisions to make.
Your workplace benefits, private insurance, income, family responsibilities and existing policy can all affect what coverage makes sense for you. The useful question is not simply, “Can I remove this?” It is, “What happens financially if I need this benefit after an accident?”
Income Replacement
Income replacement can provide support when an eligible covered person loses income because of injuries from an auto accident.
Before changing it, check:
- Whether you have workplace or private disability coverage.
- How that coverage coordinates with auto accident benefits.
- The waiting period and duration of your other coverage.
- The weekly limit included in the auto quote.
- Whether your income or employment situation could change.
Non-Earner
The non-earner benefit is not simply a general payment for anyone who happens to be unemployed. Eligibility is defined by the SABS and includes specific conditions, including the effect the accident has on the person’s ability to carry on a normal life.
Ask your insurer or broker what non-earner coverage is being offered, what amount applies and who could qualify under your policy.
Caregiver & Housekeeping
These benefits may matter if an injury leaves you unable to provide care or perform household responsibilities you handled before the accident.
Think about children, aging parents, other dependants and whether you would have to pay someone else to take over those responsibilities.
Death & Funeral
Life insurance and auto accident death or funeral benefits are different coverages with different rules. Having one should not automatically be treated as proof that the other has no value.
Review who could receive the auto benefit, what amount your insurer is offering and what other financial protection your household already has before deciding.
Other Expenses
Lost educational expenses, visitor expenses and damage to certain personal items may look smaller than income replacement or medical coverage, but they address different costs.
Compare what each benefit covers against the actual premium difference rather than assuming that removing several benefits automatically produces meaningful savings.
Mandatory Still Has Limits
Medical, rehabilitation and attendant care benefits remain mandatory, but “mandatory” does not mean unlimited.
FSRA currently lists a standard limit of $65,000 for non-catastrophic medical, rehabilitation and attendant care benefits and $1 million for catastrophic impairments. Higher limits can be available as optional coverage.
Why this matters: You should separate two questions when reviewing your policy. First, which accident benefits are included? Second, what limit applies to each benefit?
See FSRA’s current accident-benefit limits and options before comparing policies.
Will You Save Money?
Possibly, but there is no reliable province-wide dollar amount you can subtract from your premium for removing a particular optional benefit.
Insurers can structure optional benefits, limits and bundles differently, subject to FSRA filings and approval. The premium impact therefore depends on the insurer, policy, coverage selections and available product options.
Be cautious with any claim that removing income replacement, non-earner or death benefits will automatically save every Ontario driver a fixed amount each year. Compare the actual premium with and without the coverage.
When comparing quotes, make sure you are comparing the same benefits and limits. A lower quote may simply include less accident-benefit coverage.
Another July Change
One less-publicized change also took effect for accidents occurring in Ontario on or after July 1, 2026.
Ontario auto insurers are now generally the first payers for medical and rehabilitation benefits, even when an insured person has a supplementary workplace or private health plan. Medication expenses are treated differently and are excluded from this first-payer rule.
This change comes from Ontario Regulation 58/25.
Your Renewal Checklist
You do not need to become an insurance expert before your renewal. You do need enough information to compare the choices properly.
- Open your current policy. Write down the accident benefits and limits you already carry.
- Check workplace benefits. Review disability, health, life and other coverage available through work or a private plan.
- Think about your household. Consider income, dependants, caregiving responsibilities and who regularly drives the vehicle.
- Ask for the full quote. Do not compare only the total premium. Ask which optional accident benefits and limits are included.
- Compare like for like. A quote with fewer benefits is not directly comparable with one that includes broader coverage.
- Ask before opting out. Have your insurer, agent or broker explain what changes when you remove or alter a benefit.
Can You Change Later?
Yes. The July 2026 reform does not limit optional-benefit decisions to one renewal date each year.
Optional benefits can generally be changed after July 1, subject to the policy and insurer’s process. What matters after an accident is the coverage that was actually in force when that accident happened.
That also means a change in your life can be a reason to review your choices. Starting a new job, becoming self-employed, having a child or taking responsibility for an aging parent can change the kind of financial protection you need.
Compare the Whole Policy
The 2026 changes make headline premium comparisons less useful if two quotes include different accident benefits.
For example, Quote A may look cheaper than Quote B. But if Quote A leaves out income replacement, caregiver and death benefits while Quote B includes them, the premium alone does not tell you which offer provides better value for your situation.
The same principle matters when a claim appears on your insurance history even without a payout. If you are reviewing your renewal after a claim, see our explanation of how a $0 insurance claim can affect your record in Canada.
How BMI Helps
Beat My Insurance gives Canadian insurance buyers a way to compare broker proposals without contacting brokers one by one.
When reviewing Ontario auto insurance after the July 2026 changes, look beyond the headline premium. Compare which accident benefits are included, the limits attached to them and any differences brokers identify in their proposals.
You can then ask questions before choosing who you want to work with instead of selecting a quote based only on price.
Compare Ontario Insurance Options
Tell brokers what you need and compare proposals before deciding who you want to work with.
Sources Checked
This article was reviewed against current Ontario insurance rules and regulator guidance available as of September 8, 2026.
Frequently Asked Questions
What changed July 1, 2026?
Medical, rehabilitation and attendant care benefits remain mandatory in Ontario auto insurance. Most other statutory accident benefits, including income replacement, non-earner, caregiver, housekeeping, death and funeral benefits, are now optional.
Will existing coverage disappear?
No. FSRA says an existing policy must renew with the same coverages and limits as the expiring policy unless the customer agrees with the insurer in writing to decline or change those benefits.
Is income replacement mandatory?
No. Income replacement became an optional accident benefit on July 1, 2026. Whether it is appropriate for you depends on your circumstances and other available coverage.
Will opting out save money?
It may affect your premium, but there is no universal Ontario savings amount. The price difference depends on the insurer, policy, limits and coverage options. Compare the actual quotes before making a decision.
Can I change coverage later?
Optional benefits can generally be added, removed or changed after July 1, 2026, subject to the insurer’s process and applicable policy rules. The coverage in force when an accident happens is what matters for that claim.
Who gets optional benefits?
After July 1, 2026, optional accident benefits generally apply to the named insured, their spouse, their dependants and their spouse’s dependants, plus people specifically listed on the policy as drivers.
Do ongoing claims change?
No. The July 2026 changes do not change the coverage that applied to an accident that already occurred. The policy and accident benefits in force at the time of the accident govern that claim.
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