What’s Changing with Ontario’s Accident Benefits?

Starting July 1, 2026, the Government of Ontario is making auto insurance more flexible. Some accident benefits that were previously mandatory in every auto insurance policy will become optional, giving you more choice to select coverage that fits your needs and budget.

While all of the Accident Benefit coverages are staying the same, you’re being given more choice since most benefits are becoming optional.

Important Note: On or after July 1, 2026, your current coverage will automatically continue unless you communicate to your broker in writing that you would like to make changes to your auto insurance policy. You will need to review and decide whether you would like to keep, add, or remove coverage.

However, who is covered under your policy for newly optional benefits will change on July 1, 2026, regardless of renewal effective date. See more information on how this is changing below. Before making changes, check if your personal or work benefits already provide similar coverage.

What are Statutory Accident Benefits?

Ontario’s Statutory Accident Benefits Schedule (SABS) provide financial support if you are injured in a automobile accident. These benefits are available regardless of who caused the accident and can cover things like medical treatment, rehabilitation, and attendant care as a result of your injuries.

The following changes are a result of Ontario Regulation 34/10 and affect all auto insurance policies in the province, regardless of insurance carrier.

ho Is Covered For Optional Statutory Accident Benefits (SABS)?

Whether or not you make any changes to your accident benefits, starting July 1, 2026, the optional accident benefits portion (i.e. any benefits above the mandatory medical, rehabilitation, and attendant care) will change and will only be available to:

• The named insured of the auto policy
• The spouse of the named insured on the auto policy
• Dependants of the named insured on the auto policy and of the named insured’s spouse
• Persons specified in the auto policy as drivers of the insured vehicle

What These Changes Mean for You?

This means that some individuals, such as pedestrians, cyclists, and certain passengers who may have been covered in the past may no longer be eligible for optional accident benefits unless they are included in the categories listed above. This could have an impact on your liability coverage. See below for more information.

In the past,  when lending your vehicle to another licensed driver, you would also lend your insurance. With these changes, only the mandatory accident benefit coverages would be available to non-listed drivers operating your vehicle. 

If you have someone who operates your vehicle regularly, it is recommended to add them as a driver to take advantage of any optional accident benefits on your policy.

Who is the Named Insured?

The named insured is the policyholder listed at the top of the policy documents. This should match the registered owner of the vehicle(s) as shown on the ownership.

Who is a Dependant?

A person is a dependant of the named insured if the person is principally dependent for financial support or care from the named insured or the named insured’s spouse, as per the regulation.

What if I Don’t Make Any Changes?

• If you’re an existing customer:
  • Your current coverage will automatically continue unless you communicate to your broker in writing that you would like to make changes to your auto insurance policy. You will need to review and decide whether you would like to keep, add, or remove coverage.
  • Standard coverage for Caregiver Benefits as well as Housekeeping and Home Maintenance will change to “an Impairment” coverage, which includes both catastrophic and non-catastrophic impairments. When your auto policy renews, it will renew with the current standard catastrophic impairment coverage, unless you have previously purchased the option to include non-catastrophic impairments.
• If you’re a new customer:
  • Starting July 1, 2026, new customers will only be required to have the mandatory coverages and may choose which optional accident benefits they would like to purchase. It is strongly recommended that you add optional benefits to your policy based on your needs. More considerations below.
• If you’re a commercial customer or employee:
  • Speak to your broker to learn more about how this change impacts you or your employees.

Additional Questions to Consider

The following section can help you decide which optional benefits may be right for you or others covered under your policy. You may be able to add or remove these benefits based on your needs.

How to use the following self-assessment:

• Read each set of questions carefully
• If you answer ‘YES’ to one or more questions in a section for you or others covered under your policy, the benefit described may be worth considering
• Speak to your broker to review your coverage and learn more about your options

Before you begin:

If you have a private or workplace benefits plan, you may already have coverage for some of the following benefits. Before making changes to the optional benefits on your auto insurance policy, review your existing workplace or private plan or speak with your benefits advisor to confirm that you have appropriate coverage.

1. Increased Medical, Rehabilitation, and Attendant Care

• Do you have an employer group insurance plan, but your coverage is limited?
• Can you not afford to pay out of pocket for additional expenses not covered through OHIP or your group insurance plans?
• Are you self-employed with no group insurance plan or extended health coverage?

What it covers:  Helps covers the reasonable cost of medical and rehabilitation expenses (e.g., physiotherapy, prescriptions) that are not covered by OHIP or your group insurance plans.

2. Income Replacement Benefit

• Do you rely on your employment income to support yourself or others?
• If you were injured, would you not have access to disability benefits through your employer benefits or private disability insurance?

What it covers: Helps replace income you or another covered person may lose because of an auto accident.

3. Non-Earner Benefit

• Are you a student, unemployed, or retired?
• Would an injury affect your ability to live independently or pursue education?

What it covers: 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.

4. Caregiver Benefit

• Are you the primary caregiver for children, aging parents, or disabled family members?
• Are you a single parent?

What it covers: Helps cover caregiving expenses if you or another covered person is injured in an auto accident and can no longer provide care for a household member such as a child or aging parent, who needs it.

5. Lost Educational Expenses

• Are you a full-time or part-time student?

What it covers: 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.

6. Expenses of Visitors Benefit

• Do your family members live far away?
• Would your family need to visit you if you were seriously injured?

What it covers:  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.

7. Housekeeping and Home Maintenance Benefit

• Would you need to hire someone to take over housekeeping duties if you were injured?

What it covers:  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.

8. Damage to Personal Items Benefit

• Do you regularly carry valuable items such as glasses, hearing aids, or mobility devices?
• Would replacing these items be costly if damaged in an accident?

What it covers:  Helps cover the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids, etc.) damaged in an auto accident.

9. Death Benefit

• Would your family need financial support to cover ongoing expenses if you passed away in an auto accident?
• Do you lack life insurance or other coverage for funeral expenses?

What it covers:  Compensates some family members if you or another covered person die due to an auto accident.

10. Funeral Benefit

• Would your family struggle to cover funeral or burial expenses?

What it covers:  Helps cover some funeral costs if you or another covered person die due to an auto accident.

11. Supplementary Medical, Rehabilitation, and Attendant Care Benefits

• Do you think the standard coverage for medical, rehabilitation or attendant care may not be enough to meet your needs?
• Do you have a high-risk lifestyle, underlying health conditions, or limited access to care through other plans?

What it covers:  Helps cover expenses for medical benefits beyond the standard limits.

12. Dependant Care Benefit

• Do you have children or dependants who rely on you for daily care?
• Would an injury prevent you from working and caring for your dependants at the same time?

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

13. Increased Medical, Rehabilitation, and Attendant Care

• Are you concerned about the cost of living reducing the value of your benefits over time?

What it covers:  Helps to ensure that certain weekly payments and monetary limits are adjusted annually to reflect changes in the cost of living.

Disclaimer: The descriptions of the statutory accident benefits in this document is a summary of the statutory accident benefits in Ontario Regulation 34/10 (the “SABS”). Do not rely on this summary alone. For full details, refer to the SABS or speak with your broker.

Staebler Suggests

Here are some just a few examples of life situations that show how auto insurance can be tailored to better protect individuals and families. These examples are for illustrative purposes only and are not intended to reflect everyone’s unique situation. Before making changes to your policy, think about your needs and circumstances, review your current coverage, and speak to your Staebler Broker.

It’s also important to review your private or workplace benefits plans as you may already be covered elsewhere.

SINGLE PARENT

This person manages a busy schedule. They work as a contractor while caring for two young children and juggling all household responsibilities on their own. They rely on their car daily for work, school pick-ups and drop-offs, extracurricular activities for their kids, errands, and more. Without employer benefits or much savings, even a short recovery from an injury could make daily life difficult.

An auto accident could make it hard to maintain income, childcare, and household routines, especially without any family nearby to support them. Optional benefits may help them maintain stability while they recover.

Optional benefits we recommend: Increased medical, rehabilitation and attendant care, Income Replacement, Caregiver, Expenses of Visitors, Housekeeping and Home Maintenance, Death, Funeral, Dependant Care, and Indexation

YOUNG FAMILY

With two toddlers, this family manages a busy schedule and a tight household budget. One spouse works in construction and drives long distances each day for work, while the other spouse works part-time as a retail associate and provides primary care for their two young children and manages most of the housekeeping for the townhouse they’re renting. They live paycheck to paycheck and do not have disability or life insurance.

If either were injured in an auto accident, the family could face significant financial hardship and challenges with caregiving responsibilities. They may want to consider adding optional benefits to their policy to better protect them and their family.

Optional benefits we recommend: Increased medical, rehabilitation and attendant care, Income Replacement, Caregiver, Housekeeping and Home Maintenance, Death, Funeral, Dependant Care, and Indexation

SELF-EMPLOYED CONSULTANT

This person operates an independent IT consulting business from home. Their mornings usually start with a coffee and long drives to client sites across the province – part of running a business they’ve built from scratch. With their spouse working part-time, their household relies primarily on their income to cover the mortgage and household expenses. Since they are self-employed, they don’t have access to a private employer plan and have not purchased additional disability or life insurance.

If they were injured in an auto accident, working could become impossible, and their household would face financial challenges. Personal items, such as their hearing aid, could also be damaged in the accident and require replacement. They may want to consider adding optional benefits to provide extra support for themselves and their family after an accident.

Optional benefits we recommend: Increased medical, rehabilitation and attendant care, Income Replacement, Housekeeping and Home Maintenance,  Damage to Personal Items, Death, Funeral, and Indexation

RETIRED SURVIVING SPOUSE

This person is happily retired after a long career as a project manager. They live a very active lifestyle, managing all the upkeep for their apartment and driving themselves to medical appointments, errands, and social activities. A pension is their only source of income. It provides stability for basic needs but leaves little room for unexpected costs such as paid household support and unplanned medical expenses.

They may need support with daily chores and home maintenance if they were injured in an auto accident. They may also need support from their children who live out of town. Considering optional coverages may give them peace of mind.

Optional benefits we recommend: Increased medical, rehabilitation and attendant care, Income Replacement, Expenses of Visitors, Housekeeping and Home Maintenance,  Damage to Personal Items, Death, Funeral, and Supplementary Medical, Rehab, and Attendant Care Benefits

UNIVERSITY OR COLLEGE STUDENT

At 21, this person is in their final year of program and working part-time at a café. They rent an apartment close to campus with three roommates. They rely on their car to get to school, work, and activities.

If they were injured in an auto accident, they may be unable to continue their studies or maintain their part-time job. Their parents live in another city and would need to travel to provide care and support.

Optional benefits we recommend: Increased medical, rehabilitation and attendant care, Income Replacement, Non-earner, Lost Educational Expenses, Expenses of Visitors, Death, and Funeral

NEWCOMER TO CANADA

This person recently immigrated to Canada with their partner and young child and are getting settled in their community. They just started a new job as an administrative assistant and do not yet qualify for workplace disability benefits. Their partner is working irregular hours while looking for more stable employment. They have limited savings and rely on their car for work and childcare needs.

If an auto accident caused an injury, their household could face financial difficulty covering lost income, childcare, and household responsibilities. For extra support, they may consider adding optional benefits to protect everyone covered under their policy.

Optional benefits we recommend: Increased medical, rehabilitation and attendant care, Income Replacement, Caregiver, Housekeeping and Home Maintenance, Expenses of Visitors, Death, Funeral, and Dependant Care

 REMEMBER: Covered Persons might be one or more of these scenarios. It is important to consider everyone’s needs when selecting optional Accident Benefits Coverage.