Important Considerations for Newly Optional Accident Benefits
Starting July 1, 2026, Ontario will make more accident benefits optional, including income replacement and caregiver benefits. However, we don’t recommend opting out of any of these newly optional benefits unless you have equal or greater coverage under another insurance policy. Early market research has shown that there is very little cost savings by removing accident benefits. According to Canadian Underwriter, the savings would amount to less than $6.60 per month on most policies. That’s less than $80 a year, plus the risk of losing the protection of important accident benefits.
This information will help you decide which optional benefits protect you and others covered under your policy. You may add or remove these benefits based on your needs. For example, if you have private or workplace benefits, you may already have coverage for some benefits. Before changing optional benefits on your auto insurance policy, review your existing plans or speak with your benefits advisor to confirm appropriate coverage.
Medical, rehabilitation, and attendant care coverages will stay mandatory on your policy – as these provide important protections if you require medical care after an accident.
We strongly recommend keeping all accident benefits. Not having enough auto insurance coverage can significantly affect your finances after an accident, and many people lack similar protection from other benefits plans. The small premium savings rarely justify losing this coverage.
How to use the self-assessment
Read each optional benefit carefully.
If any statement under the “We recommend this coverage if” column, is true for you or others covered under your policy, it is important to have this coverage/benefit on your policy, or you will be left unprotected.
Speak to Cheep’s Support team if you have questions about accident benefits or other coverages.
Cheep’s insurance brokers offer personalized coverage advice and help designing custom auto insurance policies. You can request a quote, or contact us at 1-866-922-4337 or [email protected] to explore custom insurance solutions with our licensed brokers.
Disclaimer
*The descriptions of the statutory accident benefits in this assessment summarize the statutory accident benefits in Ontario Regulation 34/10 (the “SABS”). Do not rely on this summary alone. For full details, consult the SABS or contact your broker.
| Optional benefit* | What it covers* | We recommend this coverage if: |
|---|---|---|
| Income replacement benefit | Replaces income you or another covered person lose due to an auto accident. | You rely on your employment income to support yourself or others. AND/OR You do not have access to disability benefits through your employer benefits or private disability insurance. |
| Non-earner benefit | If you or another covered person is a student or unemployed and an auto accident disrupts your normal life, this benefit provides financial support during recovery. | You are a student, unemployed, or retired. AND/OR An injury would affect your ability to live independently or pursue education. |
| Caregiver benefit | Covers caregiving expenses if you or another covered person is injured in an auto accident and cannot care for a household member who needs your support such as a child or aging parent. | You’re a primary caregiver for children, aging parents, or disabled family members. AND/OR You’re a single parent. |
| Lost educational expenses | If an auto accident prevents you or another covered person from attending school or an education program, this can help cover the costs you have lost. | You’re a full- or part-time student. |
| Expenses of visitors benefit | Covers reasonable expenses for family visitors, like siblings or parents, if you or another covered person is injured in an auto accident. | Your family members live far away. AND/OR Your family would need to visit you if you were seriously injured. |
| Housekeeping and home maintenance benefit | Covers costs if you or another covered person cannot perform housekeeping and home maintenance tasks you handled before an auto accident. | You would need to hire someone to take over housekeeping duties if you were injured. |
| Damage to personal items benefit | Helps cover the cost to repair or replace personal items (such as: clothing, prescription eyewear, hearing aids, etc.) if they were damaged in an auto accident. | You regularly carry valuable items such as glasses, hearing aids, or mobility devices. AND/OR Replacing these items would be costly if damaged in an accident. |
| Death benefit | Compensates certain family members if you or another covered person dies in an auto accident. | Your family would need financial support to cover ongoing expenses if you passed away in an auto accident. AND/OR You don’t have life insurance or other coverage for funeral expenses. |
| Funeral benefit | Covers some funeral costs if you or another covered person dies in an auto accident. | Your family would struggle to cover funeral or burial expenses. |
| Supplementary medical, rehabilitation and attendant care benefits | Covers medical expenses beyond standard accident benefit limits. | You think the standard coverage for medical, rehabilitation or attendant care may not be enough to meet your needs. AND/OR You have a high-risk lifestyle, underlying health conditions, or limited access to care through other plans. |
| Dependant care benefit | Covers reasonable, necessary expenses for caring for dependents such as a child, spouse, or aging parent. | You have children or dependants who rely on you for daily care. AND/OR An injury would prevent you from working and caring for your dependants at the same time. |
| Indexation benefit | Helps adjust weekly payments and monetary limits annually to reflect cost of living changes. | You are concerned about the cost of living reducing the value of your benefits over time. |
Cheep’s Additional Resources
To learn more about the changes to optional accident benefits, what each benefit includes and who is covered visit our Accident Benefits Reforms blog and FAQ page:
Most policies insured with Cheep Insurance are Agency Bill/IFS financed policies. You can determine who manages your payments by following the directions below. If you are still not sure who manages your payments, call our team as funds paid directly to the insurance company when they should go to IFS will cause large delays.