ONTARIO AUTO INSURANCE REFORM

Your Auto Insurance is Changing July 1, 2026: What Ontario Drivers Need to Know

Ontario's auto insurance is changing. Starting July 1, 2026, the province is introducing reforms that give drivers more flexibility in how they build their coverage — but with that flexibility comes real responsibility. As your insurance broker, we want to make sure you have the clear, straightforward information you need to make the decisions that are right for you and the things that matter most.

What You Need to Know:

What is Changing?

Certain Statutory Accident Benefits (SABs) that were previously a standard part of every Ontario auto insurance policy will become optional. This means that, for the first time, drivers will be able to choose whether to include these benefits in their coverage or not.

While this gives you more control over your policy and your premium, it also means that some protections you may have relied on in the past will no longer be automatic. Understanding what is staying, what is changing, and what your options are has never been more important.

What is Staying the Same?

The core of your auto insurance protection remains in place. Standard medical, rehabilitation, and attendant care benefits will continue to be included in all Ontario auto policies. These benefits support your essential recovery needs if you are injured in an accident — regardless of who is at fault.

You will also continue to have the option to purchase additional or enhanced versions of these benefits, including supplementary medical and rehabilitation coverage, dependant care, and indexation benefits.

Who is Covered Under the New Rules?

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

• The named insured (the primary policyholder)
• The spouse of the named insured
• Dependents of both the named insured and their spouse
• Anyone named in the policy as a driver of the vehicle

This is an important change to understand as some individuals who may have previously been covered — such as pedestrians, cyclists, or certain passengers — may no longer be eligible for accident benefits.

If you have questions about how this affects people in your household or employees who drive for your business, we encourage you to reach out to us directly.

What Becomes Optional?

The following benefits will no longer be automatically included in your policy — but you will have the choice to add them based on your needs and circumstances:

• Income Replacement — Helps replace lost income if you are unable to work due to injuries from an auto accident.
• Non-Earner Benefit — Provides financial support for students or those who are not employed if an accident prevents them from leading a normal life.
• Caregiver Benefit — Covers caregiving costs if an injury prevents you from caring for a family member who depends on you.
• Lost Educational Expenses — Compensates for education costs if an accident keeps you or a covered person from completing a program.
• Expenses of Visitors — Helps cover reasonable costs for loved ones visiting you during your recovery.
• Housekeeping and Home Maintenance — Provides support for household tasks you are no longer able to perform due to your injuries.
• Damage to Personal Items — Covers the repair or replacement of personal belongings damaged in an accident, such as clothing, prescription eyewear, or hearing aids.
• Death Benefits — Provides compensation to eligible family members in the event of a fatal accident.
• Funeral Benefits — Helps cover funeral expenses resulting from a fatal auto accident.

What Does This Mean for You?

Existing Customers:

Your policy will automatically renew with your current coverage and benefit limits. No changes will be made without your written agreement. That said, the rules around who qualifies for newly optional benefits will change on July 1, 2026 — regardless of when your policy renews. We recommend taking some time before your renewal to review your coverage and confirm it still fits your needs.

New & Renewing Customers:

If you are purchasing or renewing a policy on or after July 1, 2026, you will have the opportunity to select which optional accident benefits you want to include. When you receive a quote from us, we will walk you through which benefits are included and help you determine which additional protections make sense for you.

Business Owners & Employers:

Changes to auto accident benefits may impact your business and your employees. We encourage commercial clients to speak with one of our commercial brokers to understand the full impact of these reforms on your business.

Steps to Take Before July 1, 2026

1. Review Your Current Coverage
   

   Take some time to understand the benefits you already have under your existing auto policy. Knowing where you stand today makes it easier to decide what changes, if any, make sense for you.

2. Check Your Other Benefit Plans
   

   You may already have coverage through your workplace benefits plan, group insurance, or a private health and life insurance policy. Reviewing these can help you avoid duplicating coverage — and help you identify any gaps.

3. Think About Your Personal Situation
   

   Consider your employment status, your family's caregiving needs, and your financial circumstances. The right coverage looks different for everyone — and that is exactly where a Real Insurance broker can help.

4. Talk to Your Broker
   

   Our brokers live and work in your community, and we are committed to making sure you have the coverage that protects the people and things you care about most. We will take the time to explain your options clearly and help you make an informed decision.