Ontario Auto Insurance Update

Ontario Accident Benefits Are Changing July 1, 2026

Most accident benefits on Ontario auto policies become optional. Nothing changes unless you ask it to: your policy renews with the coverage you already have. Here is what is changing, what removing coverage really saves, and how to make the right call for your household.

What This Change Is Really About

Accident benefits are the no-fault part of your policy that pays for your own recovery after a crash, no matter who caused it. The part becoming optional is a small slice of what you pay.

Everything else on your policy

Liability, vehicle damage coverage and more · about $2,000

Mandatory accident benefits

Medical, rehab and attendant care · about $390 · NOT changing

The benefits becoming optional

About $92 to $136 a year, by the regulator’s own costing

Based on the average Ontario private-passenger premium in the regulator’s independent actuarial costing (2025). Your numbers vary with your vehicle, record and carrier.

Your Benefits, Before and After July 1

Flip the switch to see how each benefit changes. One thing never moves: the medical, rehabilitation and attendant care core stays on every Ontario policy.

Today: 1 mandatory core + 9 standard benefits on every policy

  • Medical, Rehabilitation & Attendant Care

    Mandatory

    Treatment, recovery and personal care costs that OHIP does not cover: physiotherapy, psychology, occupational therapy, attendant care and more.

    Limit: $65,000 most injuries (5-year limit in most cases) · $1,000,000 catastrophic

    Optional increase: Non-catastrophic: to $130,000, or to $1,000,000 with no time limit. Catastrophic: to $2,000,000.

  • Income Replacement

    Included as standard

    Replaces lost income if injuries keep you from working: 70% of your gross income, up to your selected weekly maximum.

    Limit: Up to $400/week

    Optional increase: Increase to $600, $800 or $1,000/week

  • Non-Earner Benefit

    Included as standard

    Weekly support if you are a student or not working and an accident leaves you completely unable to carry on a normal life.

    Limit: Up to $185/week

  • Caregiver Benefit

    Included as standard

    Pays for replacement care if you look after a child, aging parent or other household member and your injuries stop you.

    Limit: Catastrophic impairment only: $250/week + $50/week per additional dependant

    Optional increase: Extend to all impairments

  • Housekeeping & Home Maintenance

    Included as standard

    Covers cleaning, snow shovelling, yard work and other household tasks you cannot do while recovering.

    Limit: Catastrophic impairment only: up to $100/week

    Optional increase: Extend to all impairments

  • Lost Educational Expenses

    Included as standard

    Reimburses tuition, books and similar costs if an accident forces you out of a school program.

    Limit: Up to $15,000

  • Expenses of Visitors

    Included as standard

    Covers reasonable travel and lodging costs for family who visit you during treatment and recovery.

    Limit: Reasonable and necessary expenses

  • Damage to Personal Items

    Included as standard

    Repairs or replaces clothing, prescription glasses, dentures, hearing aids and other medical devices damaged in an accident.

    Limit: Reasonable repair or replacement cost

  • Death Benefit

    Included as standard

    A payment to your spouse and dependants if you are killed in an auto accident.

    Limit: $25,000 to a surviving spouse · $10,000 per dependant

    Optional increase: Double to $50,000 / $20,000

  • Funeral Benefit

    Included as standard

    Covers funeral expenses after a fatal accident.

    Limit: Up to $6,000

    Optional increase: Increase to $8,000

Already optional today (and staying that way)

  • Dependant Care

    Optional add-on

    Daycare and similar costs if you are employed, care for dependants and are injured (when not receiving the caregiver benefit).

    Limit: Not included by default

    Optional increase: Add $75/week first dependant + $25/week each additional (max $150/week)

  • Indexation (Inflation Protection)

    Optional add-on

    Adjusts certain weekly payments and monetary limits each year to keep pace with the cost of living.

    Limit: Not included by default

    Optional increase: Add annual cost-of-living adjustment

Also changing on July 1, no matter when you renew: optional accident benefits will only cover the named insured, their spouse, dependants, and the drivers listed on the policy. Anyone else hurt in your vehicle still has the mandatory medical, rehabilitation and attendant care benefits, but can only get the optional benefits through a policy of their own, or one they are listed on.

That is a real coverage gap if you regularly carry passengers who are not insured elsewhere. An injured passenger who cannot claim those benefits may instead pursue the at-fault driver for their losses. If that driver is you, the claim lands on your liability coverage. Worth a conversation if you often drive others.

Every Benefit and Limit, Side by Side

Ontario statutory accident benefits with standard limits today, optional increases, and their status after July 1, 2026
BenefitStandard limit todayOptional increases todayAfter July 1, 2026
Medical, Rehabilitation & Attendant Care$65,000 most injuries (5-year limit in most cases) · $1,000,000 catastrophicNon-catastrophic: to $130,000, or to $1,000,000 with no time limit. Catastrophic: to $2,000,000.Mandatory
Stays on every policy at $65,000 for most injuries ($1,000,000 catastrophic). Optional increases remain available: $130,000 or $1,000,000 for non-catastrophic impairments, $2,000,000 catastrophic, plus any other limits an insurer is approved to offer.
Income ReplacementUp to $400/weekIncrease to $600, $800 or $1,000/weekOptional
Keep $400/week, increase to $600, $800 or $1,000/week, or remove it
Non-Earner BenefitUp to $185/weekOptional
Keep $185/week or remove it
Caregiver BenefitCatastrophic impairment only: $250/week + $50/week per additional dependantExtend to all impairmentsOptional
Cover all impairments, keep catastrophic-only, or remove it
Housekeeping & Home MaintenanceCatastrophic impairment only: up to $100/weekExtend to all impairmentsOptional
Cover all impairments, keep catastrophic-only, or remove it
Lost Educational ExpensesUp to $15,000Optional
Keep up to $15,000 or remove it
Expenses of VisitorsReasonable and necessary expensesOptional
Keep it or remove it
Damage to Personal ItemsReasonable repair or replacement costOptional
Keep it or remove it
Death Benefit$25,000 to a surviving spouse · $10,000 per dependantDouble to $50,000 / $20,000Optional
Keep it, double it, or remove it
Funeral BenefitUp to $6,000Increase to $8,000Optional
Keep $6,000, increase to $8,000, or remove it
Dependant CareNot included by defaultAdd $75/week first dependant + $25/week each additional (max $150/week)Still optional
Still available to add
Indexation (Inflation Protection)Not included by defaultAdd annual cost-of-living adjustmentStill optional
Still available to add

Summary of the Statutory Accident Benefits Schedule (O. Reg. 34/10) as amended effective July 1, 2026. Your Certificate of Automobile Insurance governs. Income replacement pays 70% of gross income up to the weekly maximum shown.

Which Renewal Scenario Are You In?

When your policy renews decides how (and when) changes can happen. Pick the one that matches you.

Select a scenario above to see what it means for you.

The $10-a-Month Question

Removing every optional benefit saves about $92 to $136 a year, by the industry’s own actuarial costing. Here is what sits on the other side of that scale.

~$0/mo
What removing it all saves
$0
Max income replacement (104 weeks)
$0
Death benefit to a spouse
$0/wk
Income support, unchanged for decades

Our honest take

The standard benefits were nice to have. Removing all of them saves about $92 to $136 a year, roughly $8 to $11 a month, by the regulator’s own independent costing. For most households, that trade is not worth it.

The smarter conversation is right-sizing: keep what protects you, drop what genuinely does not apply to your life, and if your household depends on your paycheque, consider increasing income replacement rather than removing it. One more wrinkle: as fewer drivers carry these benefits, the per-person price of keeping them may climb.

It’s Not All or Nothing

The right answer depends on your household, not on a brochure. A few common situations we see every week:

Removal can make sense

Retired

Income replacement only pays if you were working (or recently working) at the time of the accident. Fully retired? You generally cannot collect it, so removing it can be a rational saving. Caregiver, housekeeping and the medical core usually matter more at this stage.

Consider increasing instead

Self-employed or no benefits at work

No sick leave, no group disability? The $400-a-week benefit may be the only income protection you have, and that limit has not changed in decades. We would talk about increasing it to $600, $800 or $1,000 a week long before we would talk about removing it.

Worth keeping

Primary caregiver

If a child or aging parent depends on you, caregiver benefits are no longer automatic after July 1. Opting in means hired care is covered if an injury takes you out of that role.

Worth keeping

Student

Non-earner and lost-education benefits exist for exactly this stage of life: weekly support if an injury disrupts a normal life, and up to $15,000 back if it forces you out of a program.

Maybe. Check your plan first

Strong benefits plan at work

Group disability and health coverage can overlap with some optional benefits. Consult the details of your plan with your plan administrator. We are happy to walk you through the accident benefit side.

None of these quite you?

Five minutes with a broker beats an hour of guessing. We will go through your policy line by line.

(905) 576-7770

Which Optional Benefits Should You Keep?

For most drivers, the honest answer is: keep them all. The full optional set runs about $92 to $136 a year, and each piece covers a gap that is hard to fill anywhere else. Tick the situations below that sound like your life and we will flag the benefits you would feel the most, then go through the whole picture with you before anything changes.

These benefits follow you — as a driver, a passenger, a pedestrian or a cyclist. Drop them to save a few dollars and you have removed that protection in every one of those situations, not just behind the wheel. The mandatory medical, rehabilitation and attendant care core stays either way.

Tick a few situations above and we will highlight the benefits that matter most for you. Either way, our starting point is simple: at about $92 to $136 a year, the full optional set is usually worth keeping.

Already covered at work or through a private plan? That is the one place dropping a benefit, usually income replacement, might make sense. Confirm what your plan actually covers with your plan administrator, and let us make sure it lines up before you remove anything.

Before you change a thing, talk it through with us.

This checklist is a starting point, not insurance advice, and does not change the coverage on your policy. Your needs are personal — a licensed Roughley broker will confirm what fits before any change is made.

Some Carriers Bundle These Choices

Insurers are allowed to group certain optional benefits into packages. With some carriers, removing one coverage means removing the bundle it belongs to, and the groupings differ from carrier to carrier.

That detail changes what combinations are actually possible on your policy. Before you decide anything, reach out: we will tell you exactly how your carrier handles it.

FAQ

Frequently Asked Questions

Questions about July 1?

Talk to a Broker Who Knows the Changes

Independent and family owned in Durham Region since 1945. Call or email and we will review your accident benefits together. No pressure, no jargon.

This page summarizes the statutory accident benefits in Ontario Regulation 34/10 as amended effective July 1, 2026. It is general information, not advice about your specific policy, and your Certificate of Automobile Insurance governs. For full wordings see O. Reg. 383/24 and FSRA’s consumer auto insurance resources, and speak with a licensed Ontario insurance broker before making changes. Looking for coverage itself? See our auto insurance page.