What changes are coming to accident benefits on July 1, 2026?
Starting July 1, 2026, Ontario will change auto insurance options. Drivers can choose benefits that fit their needs. 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. All other accident benefits, like income replacement, will become optional. Coverage eligibility for these optional benefits will also change.
What optional accident benefits does Cheep recommend?
Our team strongly recommends keeping all accident benefits on your policy. The price difference is relatively small (about $80/year), especially when compared to the effect on your finances and quality of life should an injury or accident occur.
Who is covered?
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 their spouse
· Persons specified as drivers in the policy
Who is no longer covered?
Starting July 1, 2026, optional benefits under your auto policy will no longer apply to anyone not specifically named on your policy including:
- Passengers
- Pedestrians and cyclists
- Drivers and passengers of other vehicles involved in a collision
Which accident benefits will remain mandatory?
Standard medical, rehabilitation, and attendant care benefits will continue in all auto insurance policies. These benefits apply regardless of fault and cover medical expenses, therapy, and personal care assistance, including doctor visits, physiotherapy, and help with daily activities like bathing and dressing.
Medical benefit: Includes hospital care and surgeries as well as psychological, dental, eye and hearing care expenses deemed reasonable and necessary. Medication and assistive devices are also included.
Rehabilitation benefit: Includes expenses for goods and services like home and vehicle modifications, as well as vocational and family counselling,
Attendant care benefit: Includes aide or attendant care and long-term care facility, home or chronic care hospital.
All of these benefits include transportation to and from benefits services listed if they are not covered by other accident benefits.
You can learn more about what’s included in standard medical, rehabilitation, and attendant care benefits from Ontario’s STATUTORY ACCIDENT BENEFITS SCHEDULE.
Which accident benefits will become optional?
All other accident benefits will be optional, including:
· Income replacement: Helps replace income lost due to an auto accident.
· Non-earner: Provides financial support if a student or unemployed person cannot lead a normal life after an accident.
· Caregiver benefits: Covers caregiving expenses if an injured person can no longer care for a household member.
· Lost educational expenses: Covers costs if an accident prevents attendance at school or education programs.
· Expenses of visitors: Covers reasonable expenses of visitors if the insured is injured.
· Housekeeping and home maintenance: Covers costs if the insured cannot perform usual household tasks.
· Damage to personal items: Covers repair or replacement of personal items damaged in an accident.
· Death benefits: Compensates some family members if the insured dies due to an accident.
· Funeral benefits: Helps cover funeral costs if the insured dies due to an accident.
Supplementary medical, rehabilitation, attendant care benefits, dependant care benefits, and indexation will remain optional.
Why would someone choose to add, remove, or decline optional benefits?
Some Ontarians have private health or insurance plans other than their auto policy that may provide some of the same coverage. We strongly recommend keeping all accident benefits on your auto policy, however, you may review private coverages with your benefit provider if you are unsure.
How does removing optional benefits affect my insurance premiums?
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 a month on most policies.
What steps should I follow to determine which optional benefits suit my needs and confirm if I have appropriate coverage?
Before changing optional benefits, take these steps to make informed decisions with a trusted insurance expert to choose benefits that fit your needs.
Review your current coverage.
Know your current auto insurance benefits.
Review your workplace or private benefits plan.
Check if you already have coverage through your employer, private plan, or life and health insurance.
Consider your needs.
Decide which coverage suits you and whether opting out is practical.
Speak to your broker.
Where can I find more information about optional insurance coverage?
To learn more, speak with your broker. You can contact us at 1-866-922-4337 or [email protected] to explore custom insurance solutions with our licensed brokers.
For more information, read our additional resources:
Cheep’s Guide to What Ontario Drivers Need to Know about 2026 Accident Benefits Reforms
2026 Accident Benefits Reforms: Will You Need the Newly Optional Accident Benefits?
What information do I need before speaking to my broker?
Before speaking with your broker, review your current auto insurance policy to understand your coverage and consider your needs.
Thoroughly review your personal or work benefits to see if they provide similar coverage.
To help you start, take this Auto Reform SABS Opt Self-Assessment quiz to learn which accident benefits to keep for best protection.
Will these changes affect me if I have an existing policy?
Yes, for renewing customers, all accident benefits except medical, rehabilitation, and attendant care will become optional.
Your policy will renew with current coverage and limits unless you agree in writing to decline or change benefits.
You can review and update coverage based on your needs. Check if your personal or work benefits provide similar coverage before changes.
Although your policy renews with the same coverage, who is covered for optional benefits will change on July 1, 2026, regardless of renewal date.
How will this impact me if I’m buying insurance for the first time or starting a new policy on or after July 1, 2026?
Customers buying or renewing policies on or after July 1, 2026, can choose optional accident benefits. Ask your broker which benefits are in your quote. You may add optional benefits based on your needs.
Can I change my optional benefits after selecting them?
Yes. You may need to change optional benefits if your situation changes, like starting a new job, having children, or caregiving. You can change benefits anytime, but only coverage in place at the accident time applies to claims. Contact your broker to update coverage.
Request an auto insurance quote online, or call us at 1-866-922-4337 to learn about coverage options.
Can I remove or add optional benefits when starting a new policy?
If shopping for a new policy on or after July 1, 2026, you can choose optional accident benefits. Ask your broker which benefits your quote includes. You may add optional benefits based on your needs.
How can I add optional benefits to my policy?
Speak to your broker to add optional accident benefits to your policy.
Will these changes affect all drivers and auto insurance policies?
Yes, these changes will affect all drivers and auto insurance policies in Ontario, including personal, commercial, motorcycle, snowmobile, and all-terrain vehicle policies.
Do accident benefits apply when renting a car?
You may have coverage for certain accident benefits when renting a car. Review your auto insurance policy and rental contract to understand your coverage.
Will passengers in my car be covered if I opt out of certain coverages?
As of July 1, 2026, optional accident benefits apply only to the named insured, their spouse, dependants, and listed drivers.
Passengers injured in an accident won’t be covered for optional benefits unless they fall into these groups under a policy with optional benefits. Standard accident benefits still apply to all passengers.
What happens to uninsured pedestrians and cyclists?
Standard accident benefits still apply to uninsured pedestrians and cyclists. Optional benefits apply only to the named insured, their spouse, dependants, and listed drivers.
Pedestrians and cyclists injured in an accident won’t be covered for optional benefits unless they fall into these groups under a policy with optional benefits.
What if I have an ongoing claim when the changes take effect?
Ongoing claims are unaffected; coverage at the accident time applies to your claim.
If I have both auto and supplementary health insurance, which do I claim first after an accident?
If injured in an auto accident, you may have coverage through both auto and supplementary health insurance.
Starting July 1, 2026, auto insurance will pay first for medical or rehabilitation benefits (except medication costs) for injuries from an auto accident.
Your auto insurer covers these costs before your workplace or private health plan, preserving those benefits for other events.
Disclaimer
This document summarizes statutory accident benefits in Ontario Regulation 34/10 (the “SABS”). Do not rely on this summary alone. For full details, refer to the SABS or speak with your broker.
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.