Starting July 1, 2026, Ontario is making significant changes to accident benefits available under your auto insurance policy. These changes will affect what financial support you receive if you are injured in a motor vehicle accident—and may leave gaps in coverage if you are not careful.
When you renew, check to make sure your policy includes the optional benefits you need. This is especially important when comparing quotes from insurers! Optional benefits may no longer apply to pedestrians, cyclists and certain passengers who would have been covered under auto policies purchased before July 1, 2026.
This guide explains what is changing and what steps you should take now to protect yourself.
What is changing?
Ontario is moving away from a standard package of accident benefits. As of July 1, 2026:
- Only medical, rehabilitation, and attendant care benefits will remain mandatory
- All other benefits — including income replacement — will become optional
- Optional benefits will not apply to pedestrians, cyclists and certain passengers
The key benefits most Ontarians rely on in real life will need to be purchased as optional benefits:
- Income replacement: up to $400/week (70% of income, maximum $1,000 per week)
- Non‑earner benefit: ~ $185/week
- Caregiver benefit: $250/week + $50/additional dependant
- Housekeeping: up to $100/week
- Death benefit: $25,000 (spouse); $10,000 per dependant
- Funeral expenses: ~$6,000–$8,000
You will not receive any of the above unless you choose to purchase them. Optional benefits will not apply to passengers, only to those listed as drivers on the policy (named insureds), spouses or dependents.
Why this matters
Accident benefits were designed to provide immediate, no‑fault financial support after an accident. Historically, these included income replacement benefits, caregiver support and housekeeping help.
Under the new system, these are no longer included unless you pay extra to opt in by purchasing:
- you will not receive income replacement if you cannot work;
- you may need to pay for caregiving or household support out-of-pocket;
- your family may have limited financial protection in serious or fatal accidents.
A practical self‑assessment
Sample Client Checklist: Are You Protected?
Use this checklist before your next renewal. If you check YES to any of the below, you should strongly consider keeping or adding that coverage.
Income Protection
☐ I rely on my income to support myself or my family
☐ I do NOT have strong disability coverage through work or private insurance
✅ You likely need: Income Replacement Benefits
Caregiving Responsibilities
☐ I care for children, parents, or other dependants
☐ Someone would need to replace me if I were injured
✅ You likely need: Caregiver Benefits
Household Support
☐ I handle cleaning, cooking, or home maintenance
☐ I would need to hire help if injured
✅ You likely need: Housekeeping / Home Maintenance Benefits
Students / Non‑Earners
☐ I am a student, unemployed, or not eligible for income replacement
☐ An injury would disrupt my ability to study or function
✅ You likely need: Non‑Earner Benefits + Education Coverage
Family Financial Protection
☐ My family depends on my income or contributions
☐ They would struggle with funeral or sudden expenses
✅ You likely need: Death & Funeral Benefits
Medical Needs
☐ I have pre-existing health issues
☐ I do not have extended health benefits
✅ You should consider: Increased Medical/Rehab Limits
Global Risk Check
☐ I have not reviewed my auto insurance in the last 1–2 years
☐ I assumed my coverage “stayed the same”
☐ I chose my policy mainly based on price
✅ If you checked any of these, you may be underinsured under the new system.
What should you do now?
1. Review your coverage before your next renewal
Do not assume your current policy will continue to provide the same protection.
2. Understand your existing benefits
Workplace disability or health benefits may fill some gaps—but rarely all of them.
3. Have a focused conversation with your broker – make an informed decision based on risk, not just cost
The premium savings from reduced coverage are often modest. The financial consequences of being underinsured can be significant. Ask specific questions:
- What benefits will I lose if I do nothing?
- How would I be covered if I cannot work?
- What risks am I taking by opting out?
The bottom line- don’t assume you’re covered
After July 1, 2026, many of the benefits people rely on most — like income replacement benefits — will no longer be automatic. Make an informed decision and include optional benefits.
If you don’t actively choose the benefits you need, you won’t have them when you need them.
We can help
If you have questions about how these changes may affect you or your family, our personal injury team can help you understand your options and risks.
This article is intended for general information purposes only and does not constitute legal advice. For advice specific to your situation, please contact our office.
*This post was developed with the assistance of AI as a tool to enhance accessibility and clarity, and has been reviewed and refined by the author.