Ontario Auto Insurance Changed on July 1, 2026

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

Ontario auto insurance has changed. As of July 1, 2026, some Accident Benefits that were previously included in every Ontario auto policy are now optional, giving you more choice to select coverage that fits your needs.

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

At SWITCH Insurance, our brokers are here to help you understand what has changed, 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.

Last updated: August 14, 2026. Insurers are still finalizing how they apply these changes and some have adopted different approaches. We update this page as we learn more. Speak with your broker for guidance specific to your policy.

Key things to know

•The changes took 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 are now optional — you choose whether to keep, add, or remove them.
•Who is covered for the newly optional benefits changed on July 1, 2026. For most policies this applies immediately, regardless of your renewal date — but Aviva is handling this differently. Ask your broker.
•Talk to your broker before requesting a mid-term change. Depending on your insurer, some changes are processed as a cancellation and rewrite, which can affect more than the benefit you asked to change.

Two big changes, not one

It is easy to focus on benefits moving from mandatory to optional, but the reform did two things — and the second matters just as much.

1.Some benefits are now optional. Several Accident Benefits that used to be included in every policy can now be kept, added, or removed.
2.Fewer people are covered by those optional benefits. As of July 1, 2026, the optional benefits generally extend only to the named insured, their spouse, their dependants, and drivers listed on the policy. Passengers, pedestrians and cyclists outside those groups generally keep access to the mandatory Medical, Rehabilitation and Attendant Care benefits only.

One insurer is handling the eligibility change differently: Aviva is keeping the previous rules on existing policies until they renew. Read what that means for your policy — especially before any mid-term change.

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 changed on July 1, 2026?

Ontario drivers now have more choice and control over their coverage. While certain essential benefits remain mandatory, many others are 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.

Now 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
This benefit may apply if an auto accident keeps you or another covered person — for example a student or someone who is unemployed — from leading a normal life, and 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. What is available can vary depending on the option selected and the insurer.
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. What is available can vary depending on the option selected and the insurer.
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

Increases the coverage limits available for medical, rehabilitation and attendant care benefits beyond the standard amounts.

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.

Third Party Liability limits

With some Accident Benefits no longer automatically included for everyone, it is worth reviewing whether your Third Party Liability limit is still appropriate at the same time as your Accident Benefits.

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

Who is covered by optional benefits?

As of July 1, 2026, the newly optional benefits under your auto policy — when purchased — apply only 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 — are no longer eligible for the optional benefits. Standard medical, rehabilitation, and attendant care benefits still apply to passengers, and to uninsured pedestrians and cyclists.

For most policies, this change applies as of July 1, 2026 regardless of your policy’s renewal date. At this time, Aviva is the only carrier that has chosen to continue applying the previous eligibility rules on existing policies until they renew. Your broker can confirm what applies to your policy and your household.

The Aviva exception: not every insurer is applying this the same way

The rules about who is covered for the newly optional benefits took effect on July 1, 2026 and, for most policies, apply immediately — even if your policy does not renew until later in the year.

Aviva has chosen to keep the previous eligibility rules in place on existing policies until those policies come up for renewal. Where that applies, passengers, pedestrians and cyclists who do not have access to their own auto policy may continue to have access to the optional benefits already on that policy until its renewal date. This applies to personal and commercial policies that were already in force with Aviva before July 1, 2026 — new business written on or after that date follows the new eligibility rules.

Two things are worth understanding if this applies to you:

It ends at renewal. Once the policy renews, the new eligibility rules apply in full.
It does not survive a cancellation and rewrite. If an existing policy is cancelled mid-term and rewritten — including because of a request to change your Accident Benefit options — the replacement policy is treated as new business and the new eligibility rules apply immediately.

That second point matters. A change that looks small, such as removing a benefit to reduce your premium, may in some cases be processed as a cancellation and rewrite, which could remove coverage for people beyond the benefit you asked to change. Speak with your SWITCH broker before requesting any mid-term change so you understand the full effect first.

Your broker can confirm which insurer holds your policy and how they are applying these rules.

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 took effect 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.

For most policies, who is covered for the newly optional benefits changed on July 1, 2026, regardless of your renewal date. Aviva is continuing to apply the previous eligibility rules on existing policies until they renew. Your broker can confirm which applies to you.

Before requesting a mid-term change, speak with your broker. Some insurers process changes to Accident Benefit options as a cancellation and rewrite. Where that happens, the replacement policy is new business and any transitional arrangement your previous policy had would no longer apply. The effect can extend beyond the specific benefit you asked to change.

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. Review the gaps and overlaps, and how those coverages would coordinate with your auto policy.
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 before you change anything
They can explain your options, confirm how your insurer is applying the new rules, and tell you whether a mid-term change would be processed as a cancellation and rewrite.

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 understand any gaps, overlaps, and how the coverages would coordinate.

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 only. It does not determine coverage or eligibility, which ultimately depend on the SABS, your policy wording, the coverage you select, and the circumstances of the loss. Bring your answers to your broker to review your options — and if you have an existing policy, ask before making any change, as some changes are processed as a cancellation and rewrite.

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.