2026 Ontario Auto Insurance Reform

Every policyholder can add or remove optional accident benefits from their policy.

Some Ontarians already pay for benefits through their employer or private insurance plans. These reforms eliminate a one-size-fits-all approach, and consumers will no longer have to pay for benefits they may already have elsewhere or do not want to buy.

Ontario is making changes to auto insurance that puts consumers in the driver’s seat, providing you with more choice and control over your coverage to fit your needs. If you choose to remove benefits that have now become optional from your existing coverage, it may impact your premium.

Before speaking with your insurance representative, you should review your current auto insurance policy to better understand what coverage you currently have and think about your needs. Thoroughly review your personal or work benefits to see if they already provide similar coverage.

You may need to change your optional Accident Benefits if your situation changes, such as starting a new job, having children, or taking on caregiving responsibilities. You can change your optional benefits at any time, but only the coverage in place at the time of an auto accident will apply to your claim. To update your coverage, contact your insurance representative to review your options and make sure your policy reflects your current needs.

Yes, the changes to Accident Benefits optionality will impact all drivers and auto insurance policies in Ontario, including personal private passenger, commercial/public, and recreational vehicle policies.

You may be covered for certain Accident Benefits coverage when renting a car. Remember to review your auto insurance policy and the rental contract to understand what you’re covered for.

As of July 1, 2026, optional accident benefits coverage will only apply to the named insured, their spouse, dependants of the named insured and of the named insured’s spouse and listed drivers. Passengers injured in an automobile accident will not be covered for optional benefits unless they fall into one of these groups under an auto insurance policy that includes optional benefits. However, some Accident Benefits will still apply to all passengers.

Standard Accident Benefits will still apply to uninsured pedestrians and cyclists. Optional Accident Benefits coverage will only apply to the named insured, their spouse, dependants of the named insured, the named insured’s spouse, and listed drivers. Pedestrians and cyclists injured in an automobile accident will not be covered for optional benefits unless they fall into one of these groups under an auto insurance policy that includes optional benefits.

There is no impact to ongoing claims, the auto insurance coverage you had at the time of the accident applies to your claim.

If you are injured in an automobile accident, you may have coverage through both your auto insurance and your supplementary health insurance plan. Starting July 1, 2026, Ontario is making changes to ensure that auto insurance will pay first for medical or rehabilitation benefits (except for medication costs) for an injury sustained in an automobile accident. This means your auto insurance provider will cover these costs before your workplace or private health plan, helping you preserve those benefits for other life events.

If you are injured and do not have coverage under your auto insurance, some expenses may be covered by the Ontario Health Insurance Plan (OHIP), other medical or benefit plans or other types of insurance plans you may have purchased (e.g., life or disability). You may have to pay out of pocket if you are not otherwise covered.

Visit https://www.fsrao.ca/consumers/auto-insurance for the details directly from the Financial Services Regulatory Authority of Ontario (FSRA) and https://www.ontario.ca/laws/regulation/100034 for the Statutory Accident Benefits Schedule (SABS).