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Ontario drivers: Some insurance coverages become optional July 1. Learn what’s changing.

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Ontario auto insurance reform: What drivers need to know 

Starting July 1, 2026, the Ontario auto insurance system is changing to give drivers more flexibility and choice in their coverage. A number of Statutory Accident Benefits will become optional, allowing drivers to customize their policy based on their needs.

This guide explains what’s changing, what it means for you, and what to consider when reviewing your policy. 

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Key takeaways  

  • The Ontario auto insurance reform takes effect on July 1, 2026. 
  • Several Accident Benefits will become optional. 
  • Existing policyholders will retain their current coverage unless they choose to make changes. 
  • Removing optional coverages may lower premiums but could increase out-of-pocket costs after an accident. 
  • Reviewing your policy before renewal is recommended. 

 

What is the Ontario auto insurance reform? 

The Ontario auto insurance reform refers to new regulatory changes to Ontario’s auto insurance system, effective July 1, 2026. The reform is intended to modernize the system and give drivers greater flexibility in choosing and managing their coverage. 

The changes are designed to help: 

  • Improve affordability for Ontario drivers: The province has historically had some of the highest auto insurance premiums in Canada.  
  • Reduce duplication in coverage: Some drivers may already have certain benefits covered through workplace or private plans. 
  • Provide more flexibility in coverage choices: Drivers can tailor certain coverage options to their individual needs.  

Ontario auto insurance reform at a glance

Before July 1, 2026

After July 1, 2026 

All Accident Benefits are mandatory 

A number of Accident Benefits become optional

Drivers may be paying for benefits already covered by workplace or private plans 

Drivers can opt out of certain benefits based on coverages they already have  

Existing coverage remains in place 

Existing coverage remains in place unless you choose to make changes 

What changes for Ontario drivers?

Ontario drivers will see significant changes to Statutory Accident Benefits coverage. While some core protections will remain mandatory, several Accident Benefits will become optional. Existing policyholders will automatically keep these newly optional coverages unless they choose to make changes.

Which Accident Benefits will still be mandatory?  

The following benefits will continue to be mandatory in standard Ontario auto insurance policies. 

Medical    

Helps cover medical expenses related to injuries sustained in an auto accident, including treatment and recovery-related care. 

Rehabilitation   

Covers rehabilitation services that support recovery after an accident-related injury. 

Attendant Care 

Helps pay for personal care assistance if accident injuries affect your ability to live independently. 

Which Accident Benefits will become optional?

Beginning July 1, 2026, the following benefits will become optional.  

Income Replacement 

Provides income support if auto accident injuries prevent you from working. 

Non-Earner 

Provides financial support for students or unemployed individuals if car accident injuries affect daily activities. 

Caregiver 

Helps cover caregiving expenses if automobile accident injuries prevent you from caring for dependants. 

Housekeeping and Home Maintenance 

Covers housekeeping and home maintenance costs if an auto accident injury prevents you from performing them yourself. 

Dependant Care 

Helps pay for childcare or dependant care expenses after a car accident injury. 

Lost Educational Expenses 

Provides compensation for education-related costs if car accident injuries prevent you from completing school. 

Expenses of Visitors 

Helps cover certain visitor expenses if family members visit you during recovery from an auto accident injury. 

Damage to Personal Items 

Helps cover the cost to replace personal items damaged in an automobile accident, such as clothing, glasses, or hearing aids. 

Death and Funeral Benefit 

Provides financial support to eligible surviving family members and helps cover funeral expenses after a fatal car accident.

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Samantha Schmidt

Underwriting Specialist

Samantha Schmidt

What else is changing under the reform? 

In addition to changes to Statutory Accident Benefits, the reform also updates who certain coverages apply to and how some claims may be handled after an accident. 

 

Changes to covered individuals 

 
Under the new reform, optional Accident Benefits coverage applies to: 

✅ The named insured listed on the policy 
✅ The spouse of the named insured 
✅ Dependants of the named insured and spouse 
✅ Drivers specifically listed on the policy 


Optional Accident Benefits coverage does not automatically apply to: 

❌ Pedestrians 
❌ Cyclists 
❌ Certain passengers 

Note: Mandatory Accident Benefits will still apply to uninsured pedestrians, cyclists, and certain passengers following an automobile accident. 


Changes to claims payments  

Beginning July 1, 2026, Ontario auto insurance policies will generally become the primary payor for eligible medical and rehabilitation expenses after an accident, except for prescription medication expenses. 

This means eligible accident-related medical and rehabilitation costs will be covered through your auto insurance policy first before workplace or private benefit plans are used. 

How could the reform affect insurance rates?

Ontario’s auto insurance reform may affect what drivers pay, but lower premiums are not guaranteed. While drivers may see modest savings by removing optional Accident Benefits coverages, rates will continue to depend on factors such as your driving history, vehicle, location, insurer, and selected coverages. 

Important consideration: Removing optional coverages may leave you responsible for higher out-of-pocket costs after an accident. 

 

What affects rates?  

  • The optional Accident Benefits coverages you keep or remove  
  • Your driving record and claims history  
  • Your vehicle type and where you live  
  • Your insurer’s pricing and coverage options  
  • Whether you already have workplace or private benefits coverage 

What Ontario drivers should consider

As Ontario’s auto insurance reform takes effect, reviewing your policy can help you better understand your options and the level of 
protection that makes sense for your needs. Here are a few steps you can take when considering your coverage choices.

Auto insurance

1. Review your current coverage

Take time to understand which Accident Benefits are currently included in your policy and which will become optional after July 1, 2026.  

2. Consider your financial protection needs

Think about the level of financial support you may need after a serious auto accident, including income replacement, caregiving, or dependant care expenses. If an injury prevents you from working or caring for a dependant, these benefits can help cover costs during your recovery. 

3. Check your workplace or private benefits

Review any coverage you may already have through work or private benefit plans. For example, if you already have disability or income replacement benefits through work, you may choose to opt out of certain optional coverages in your auto insurance policy.

4. Ask questions before making changes

If you’re unsure about removing or changing coverage, talk to a licensed insurance advisor to better understand your options and potential coverage gaps.

How Surex helps Ontario drivers navigate changes

Surex helps Ontario drivers compare policies, review optional Accident Benefits selections, and make informed coverage decisions. 

Surex can help you:   

✓ understand how the reform may affect your policy 
✓ review optional Accident Benefits coverages 
✓ identify potential coverage gaps 
✓ compare Ontario auto insurance quotes from multiple providers 
✓ explore your options before renewal 

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Ontario auto insurance reform FAQs

Ontario’s auto insurance reform takes effect on July 1, 2026. 

No, existing policyholders do not need to take action before July 1, 2026. Your policy will automatically continue with your current coverage and limits.  

Yes, your current coverage will stay the same unless you choose to make changes. Any newly optional Accident Benefits will continue to be included in your policy.  

Rates may decrease for drivers who choose to remove certain optional coverages. Drivers who keep their current coverage may see little or no change to their premium.

No, most drivers do not need new coverage. Your current coverage will continue unless you choose to make changes to your policy. However, you may want to review your coverage options to better understand which Accident Benefits are optional and whether your current coverage still meets your needs.

At renewal, your policy will automatically continue with your existing coverage and limits unless you choose to make changes. Before renewing, you may want to review your coverage and determine whether any optional benefits still meet your needs. 

Yes, you can opt out of certain coverages beginning July 1, 2026. Several Accident Benefits that were previously included automatically will become optional, allowing you to choose whether to keep or remove certain coverages based on your needs, budget, and any workplace or private benefits you already have. 

Important consideration: Optional Accident Benefits can provide financial support and access to services after a serious auto accident. Before removing coverage, it’s important to understand the potential risks and financial impacts of reduced protection. 

You should consider keeping optional Accident Benefits if you're self-employed, rely heavily on your income, care for dependants, or have limited workplace or private benefits. These coverages can provide critical financial support after a serious accident.

Yes, Ontario will remain a no-fault auto insurance province after the reform takes effect. Drivers will continue to make Accident Benefits claims through their own insurance policy, regardless of who caused the accident.

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