Ontario Auto Insurance is Changing July 1, 2026

You do have a choice. We can help you understand it.

Ontario auto insurance is changing. Starting July 1, 2026, some Accident Benefits that were previously included in every Ontario auto policy will become optional, giving you more choice to select coverage that fits your needs.

That means drivers will have more choice when selecting coverage — but also more decisions to make.

At SWITCH Insurance, our brokers are here to help you understand what is changing, what coverage may still be included, and what optional benefits may be right for you and your family.

Have questions about your policy? Contact your SWITCH Insurance broker today.

Key things to know

•The changes take effect July 1, 2026 and apply to all Ontario auto insurance customers.
•Medical, rehabilitation, and attendant care benefits stay mandatory in every policy.
•Several other benefits become optional — you choose whether to keep, add, or remove them.
•Who is covered for the newly optional benefits changes on July 1, 2026 — regardless of your renewal date.

What are Statutory Accident Benefits?

Statutory Accident Benefits (SABs) are part of your Ontario auto insurance policy. They can provide financial support if you, a family member, or another covered person is injured in an auto accident — regardless of who caused the accident.

These benefits can cover things like medical treatment, rehabilitation, attendant care, and income if you cannot work because of your injuries.

What is changing on July 1, 2026?

Starting July 1, 2026, Ontario drivers will have more choice and control over their coverage. While certain essential benefits remain mandatory, many others become optional and can be selected or removed when purchasing or renewing your policy.

This means you may be able to choose whether to keep, add, remove, or adjust certain benefits — so you no longer have to pay for coverage you may already have elsewhere or do not need.

Your broker can help explain your options before you make changes.

Stays mandatory

Included in every Ontario auto policy

Medical Benefits
Helps cover eligible medical expenses, such as doctor visits, for injuries from an auto accident.
Rehabilitation Benefits
Helps cover eligible treatment and therapy, such as physiotherapy, needed to recover from an auto accident injury.
Attendant Care Benefits
Helps cover personal care assistance, such as help with daily activities like bathing and dressing, after an auto accident.

Becomes optional

You choose whether to keep, add, or remove

Income Replacement
Helps replace income you or another covered person may lose because of an auto accident.
Non-Earner
If you or another covered person is a student or unemployed and an auto accident keeps you from leading a normal life, this benefit can provide financial support while you recover.
Caregiver Benefits
Helps cover caregiving expenses if you or another covered person can no longer provide care for a household member, such as a child or aging parent.
Lost Educational Expenses
If an auto accident keeps you or another covered person from attending school or an education program, this benefit can help cover the costs you have lost.
Expenses of Visitors
Helps cover reasonable and necessary expenses of visitors, such as a sibling or parents, if you or another covered person is injured in an auto accident.
Housekeeping and Home Maintenance
Helps cover costs if you or another covered person is unable to perform the housekeeping and home maintenance tasks normally done before an auto accident.
Damage to Personal Items
Helps cover the cost to repair or replace personal items (such as clothing, prescription eyewear, or hearing aids) damaged in an auto accident.
Death Benefits
Compensates some family members if you or another covered person dies due to an auto accident.
Funeral Benefits
Helps cover some funeral costs if you or another covered person dies due to an auto accident.

Coverage you can choose to add

You can also choose to purchase additional or increased coverage beyond the standard amounts, including:

Supplementary medical, rehabilitation and attendant care benefits

Helps cover expenses for medical benefits beyond the standard limits.

Dependant care benefits

Helps cover reasonable and necessary additional expenses associated with caring for dependants such as a child, spouse, or aging parent.

Indexation benefits

Helps ensure certain weekly benefit payments and monetary limits are adjusted annually to reflect changes in the cost of living.

Your broker can help you decide whether higher limits or added coverage make sense for your situation.

Who is covered by optional benefits?

Starting July 1, 2026, the newly optional benefits under your auto policy — when purchased — will only apply to:

the named insured;
the spouse of the named insured;
dependants of the named insured and of the named insured’s spouse; and
persons specified in the policy as drivers of the automobile.

This is an important change. Some people — such as pedestrians, cyclists, and certain passengers who may have been covered in the past — may no longer be eligible for the optional benefits. Standard medical, rehabilitation, and attendant care benefits will still apply to passengers, and to uninsured pedestrians and cyclists.

This change to who is covered for the newly optional benefits takes effect on July 1, 2026, regardless of your policy’s renewal date. Your broker can help you understand how this may apply to your household.

What is a dependent?

For Accident Benefits, a dependent is generally someone who is principally dependent on the named insured or the named insured’s spouse for financial support or care.

A dependent may include a child, a student, or another family member depending on the circumstances. It is not based only on whether someone lives in your home.

Your broker can help you review who may be considered part of your household for insurance purposes.

Will this affect my current policy?

These reforms apply beginning July 1, 2026, and affect all Ontario auto insurance policies — including personal private passenger, commercial, motorcycle, snowmobile, and all-terrain vehicle policies.

If you already have a policy, it will renew automatically with your current coverage and limits — including any increased optional coverage you already purchased — unless you agree with your insurer in writing to decline certain benefits or make changes to them.

However, who is covered for the newly optional benefits under your policy will change on July 1, 2026, regardless of your renewal date. Before making changes, check whether your personal or workplace benefits already provide similar coverage.

Do not assume that the lowest price automatically gives you the protection you want.

What steps should I take?

1
Review your current coverage
If you are an existing customer, know what benefits you already have today through your auto insurance policy.
2
Review your workplace or private benefits plan
You may already have coverage through your employer, private benefits plan, or life and health insurance providers. Avoid duplication.
3
Think about your needs
Consider which coverage is right for you and whether opting out is practical for your situation.
4
Speak to your broker
They can help explain your options so you can make informed decisions and choose the benefits that best fit your needs.

Self-assessment: do you need optional benefits?

Tick the box for any statement that is “yes” for you or others covered under your policy. If you check one or more boxes under a benefit, that benefit may be worth considering. Leave a box blank if your answer is “no.”

Before you begin: If you have a private or workplace benefits plan, you may already have coverage for some of these benefits. Review your existing plan or speak with your benefits advisor before making changes to avoid paying twice.

Check the statements above that apply to you to see which optional benefits may be worth discussing with your broker.

This self-assessment is a starting point, not coverage advice. Bring your answers to your broker to review your options.

Examples to think about

These illustrative scenarios show how coverage can be tailored to different situations. They are examples only and are not intended to reflect everyone’s unique circumstances. Before making changes, think about your needs, review your current coverage and any workplace or private benefits, and speak to your broker.

The single parent

They work as a contractor while caring for two young children and managing the household on their own. They rely on their car daily and have no employer benefits or much savings, so even a short recovery could make daily life difficult.