Ontario Auto Insurance Changes

Medical, rehabilitation and attendant care benefits will remain mandatory to ensure everyone has access to essential recovery support.

To provide vehicle owners with more choice and flexibility, all other accident benefits will become optional, including:

• Income replacement: Helps replace income you may lose because of an auto accident.

• Non-earner: If you are a student or unemployed and an auto accident impacts your daily activities, this coverage can provide financial support while you recover.

• Caregiver benefits: This benefit covers caregiving expenses if you, or another person covered by your policy, is injured in an auto accident and can no longer provide care for a dependant. This may include a child, an aging parent or another adult in your household who relies on you for daily care.

• Lost educational expenses: If an auto accident keeps you from attending school or an education program, this benefit can help to cover the costs you have incurred, such as tuition and books.

• Expenses of visitors: Covers reasonable and necessary expenses for certain visitors who visit you after you are injured in an auto accident. These visitors could include a spouse, child, grandchild, parent, grandparent or sibling. 

• Housekeeping and home maintenance: Helps pay for housekeeping or home maintenance services if you, or another person covered by your policy, are unable to perform these tasks because of auto accident-related injuries.

• Damage to personal items: Helps cover the cost to repair or replace personal items damaged in an auto accident, such as clothing, prescription eyewear and hearing aids.

• Death benefits: Provides financial compensation to certain family members if you, or another covered person, dies as a result of an auto accident.

• Funeral benefits: Helps cover the cost of some funeral expenses if you, or another covered person, die due to an auto accident.

Supplementary medical, rehabilitation and attendant care benefits, indexation and dependant care benefits will continue to be optional.

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

Starting July 1, 2026, optional benefits under your auto policy will only apply to:

• The named insured

• The spouse of the named insured

• Dependants of the named insured and the named insured’s spouse

• Persons specified in the policy as drivers of the automobile.

If you choose to remove benefits that have now become optional from your existing coverage, it may impact your premium.

Before deciding to remove or add optional benefits, take the following steps:

• Step 1 - Review your current auto insurance coverage (if you are an existing customer) to understand what benefits you currently have.

• Step 2 - Review your workplace and/or private benefits plan to see if you already have coverage through your employer, private benefits plan, or life and health insurance.

• Step 3 - Consider which coverage is right for you and whether opting out is practical.

• Step 4 - Speak to your insurance representative.

To learn more about optional benefits, speak with your insurance representative when purchasing a new policy or at renewal.

You need to review your current auto insurance policy to understand what coverage you currently have and think about what you may need. Thoroughly review your workplace and/or private benefits plans to see what other coverage you may already have.

Yes, if you’re a renewing customer, all accident benefits except medical, rehabilitation and attendant care will become optional. Your current coverage will automatically continue as is, unless you choose to remove or add optional benefits. You can review and update your coverage as needed.

Customers purchasing auto insurance for the first time or who are starting a new policy on or after July 1, 2026, can choose which optional accident benefits they would like to purchase. Ask your insurance representative which benefits are included in their quote. You may want to add optional benefits to your policy based on your needs.

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 after July 1, 2026, but only the coverage in place at the time of an auto accident will apply to your claim. To update your coverage, contact your insurer, agent or broker to review your options and ensure your policy reflects your needs.

Yes, you can remove or update your auto insurance coverage at any time. Before deciding to remove or add coverage, review your current policy to understand what you’re covered for, think about your needs and thoroughly review other workplace and/or private plans to see if they cover you. Speak to your insurance representative to explore your options.

Review your auto insurance policy and contact your insurance representative to discuss making changes to your optional benefits prior to renewal.

Speak to your insurance representative to add optional accident benefits to your auto insurance policy.  

Yes, the changes to accident benefits will impact all drivers and auto insurance policies in Ontario, including those for private passenger vehicles, commercial vehicles, motorcycles, snowmobiles and all-terrain vehicles.

You may be covered for certain accident benefits coverage when renting a car. It’s best 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 auto 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, mandatory accident benefits will still apply to all passengers.

Mandatory 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 and of the name insured’s spouse, and the drivers listed in the policy. Pedestrians and cyclists injured in an auto 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.

These changes have no impact on ongoing claims. The auto insurance coverage you had at the time of the accident applies to your claim.

Starting July 1, 2026, in Ontario, auto insurance will pay first for medical and rehabilitation benefits (except for medication costs) for any injury sustained in an auto 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.