Cheep’s Guide to Statutory Accident Benefits Changes
Statutory Accident Benefits (SABs) are a key part of your auto insurance policy. Starting July 1, 2026, Ontario will make more accident benefits optional, including income replacement and caregiver benefits. Medical, rehabilitation, and attendant care benefits will still be mandatory to ensure access to essential recovery support.
Who is covered for optional benefits under your policy will change. Optional accident benefits will no longer apply to pedestrians, cyclists, and passengers unless specifically included on an auto insurance policy with these benefits.
Cheep’s SABs Recommendation
When these benefits become optional, we strongly recommend keeping all accident benefits. The financial burden of an accident can significantly affect your quality of life, and many people lack similar protection elsewhere. The small premium savings (estimated to be less than $6.60 per month) rarely justify losing this coverage.
We recommend talking to your insurance provider about these changes to ensure you’re prepared and protected in Ontario’s new auto insurance landscape. This article provides the facts you need to make informed decisions about your coverage options.
If you have questions or need advice from a licensed broker, our insurance experts are happy to evaluate your coverage needs and design a customized policy for you!
What are Statutory Accident Benefits?
Statutory Accident Benefits provide financial support if you are injured in an auto accident. These benefits apply regardless of fault and cover medical treatment, rehabilitation, and income if you cannot work due to injuries from the accident.
How are SABs Changing in Ontario?
Starting July 1, 2026, Ontario drivers will face new choices for car insurance coverage. Some essential benefits remain mandatory, while others become optional and can be added or removed when buying or renewing your policy.
If you’re an existing customer, your policy will renew with the same coverage and limits unless you agree in writing with your insurer to decline or change benefits. We strongly recommend keeping the newly optional benefits unless you have similar coverage through other programs. Check if your personal or work benefits already provide similar coverage before making changes.
Customers purchasing or renewing a policy on or after July 1, 2026, can select which optional accident benefits to buy.
Who is covered under Ontario’s newly optional accident benefits?
Although existing policies will renew with the same coverage and limits, who is covered under newly optional accident benefits will change on July 1, 2026, regardless of renewal date.
Passengers and pedestrians involved in an accident with your vehicle will no longer qualify for your policy’s optional benefits unless they are specifically named on your policy.
Optional accident benefits under your auto policy will cover only the following individuals:
The named insured
The named insured’s spouse
Dependants of the named insured and spouse
Persons specified in the policy as drivers of the automobile
Standard accident benefits will still apply to uninsured passengers, pedestrians, and cyclists.
Are some accident benefits still mandatory?
Yes, essential accident benefits are still mandatory. Standard medical, rehabilitation, and attendant care benefits remain mandatory in all auto insurance policies. These benefits apply regardless of fault and cover medical expenses, therapy, and personal care for accident injuries, including doctor visits, physiotherapy, and assistance with daily activities like bathing and dressing.
Which benefits become optional in Ontario on July 1, 2026?
The following auto insurance accident benefits will become optional.
| Optional benefit* | Coverage Summary* |
|---|---|
| Income replacement | Helps replace income lost by you or another covered person due to an auto accident. |
| Non-earner | If you or another covered person is a student or unemployed and an auto accident prevents you from living normally, this benefit provides financial support during recovery. |
| Caregiver benefits | Covers caregiving expenses if you or another covered person is injured in an auto accident and cannot care for a household member who relied on your support, such as a child or aging parent. |
| Lost educational expenses | If an auto accident prevents you or another covered person from attending school or an education program, this benefit can cover your lost costs. |
| Expenses of visitors | Covers reasonable and necessary expenses for visitors, like siblings or parents, if you or another covered person is injured in an auto accident. |
| Housekeeping and home maintenance | Covers costs if you or another covered person cannot perform housekeeping and home maintenance tasks you were responsible for before an auto accident. |
| Damage to personal items | Covers the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids) if they are damaged in an auto accident. |
| Death benefits | Compensates certain family members if you or another covered person dies in an auto accident. |
| Funeral benefits | Covers some funeral costs if you or another covered person dies in an auto accident. |
Which benefits that will remain optional?
You can still choose to add the following benefits to your policy:
Optional benefit* | What it covers* |
|---|---|
Supplementary medical, rehabilitation and attendant care benefits | Covers medical expenses beyond standard limits. |
Dependant care benefits | Covers reasonable and necessary extra expenses for caring for dependents such as a child, spouse, or aging parent. |
Indexation benefits | Ensures weekly benefit payments and monetary limits adjust annually to reflect cost of living changes. |
Benefits Descriptions Disclaimer
*The descriptions of statutory accident benefits on this page summarize the benefits in Ontario Regulation 34/10 (the “SABS”). Do not rely on this summary alone. For full details, consult the SABS or speak with your broker.
What Steps Should I Take to Ensure I Have the Best Auto Insurance Coverage for My Needs?
Review your current auto insurance coverage to understand your benefits.
Check coverage from your workplace, private benefits plan, or life and health insurers.
Consider your needs and which coverage suits you.
Review our frequently asked questions guide and self-assessment to learn which accident benefits to keep for your protection.
Consult your broker to explore your options.
Remember, the extra cost of optional accident benefits are relatively small compared to the crucial protection they can provide if you need to file a claim.
Need help navigating your Ontario car insurance options?
We can help with expert broker advice!
Cheep’s team of insurance experts is always happy to help ensure you make informed decisions and choose the benefits that best fit your needs and budget.
You can request a quote, or discus custom insurance solutions with advice from our licensed brokers. Call us at 1-866-922-4337 or email us at [email protected].
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.