What’s Changing about Accident Benefits in Ontario?

Starting July 1, 2026, the Statutory Accident Benefits Schedule (SABS) — the no-fault bodily injury benefits portion of your auto policy — will see a major change under Ontario Regulation 34/10.

This update will give drivers more choice and flexibility in their coverage, but also means that many benefits that have been standard will become optional. It’s essential to review your policy now and speak with your broker ahead of time to ensure you and your family have the protection you need after July 1, 2026.

Financial Services Regulatory Authority of Ontario (FSRA): Changes to Statutory Accident Benefits Coverage in Ontario (July 1, 2026)

What Are Statutory Accident Benefits?

Statutory Accident Benefits (SABs) provide coverage for injuries sustained in an auto accident, regardless of who was at fault. They help cover some expenses related to medical treatment, rehabilitation, income replacement, and other supports during recovery.

Currently, every Ontario auto insurance policy includes a comprehensive package of these benefits. While currently there are “buy up” options that policyholders may choose to add on to their automobile policy, the basic level of Accident Benefits coverages have been mandatory.

After July 1, 2026, many of these benefits even the basic level will become optional. Your renewal this year will continue with the same accident benefits as before, unless you advise your broker in writing that you’d like to remove them.

• Details on the current Accident Benefits (pre-July 1, 2026): Accident Benefits – Staebler Insurance

• More information about what’s changing (on July 1, 2026): Accident Benefits Changing in 2026 – Staebler Insurance

Accident Benefit Changes Effective July 1, 2026

Which Mandatory Benefits are staying the same?

These are required with every auto insurance policy:

Medical Benefit

• This benefit may pay for some medical expenses incurred when you or other insured persons are injured. These are expenses that are not covered by any other plan

Rehabilitation Benefit

• The benefit may pay for some rehabilitation expenses incurred when you or other insured persons are injured. These are expenses that are not covered by any other plan.

Attendant Care Benefit

• This benefit may compensate you and other insured persons for some of the expense of an aide or attendant, including transportation for an aide or attendant to accompany the insured person to and from medical and rehabilitation treatments.

These standard medical, rehabilitation and attendant care benefits will continue to be mandatory and included in all auto insurance policies. These benefits are considered no-fault benefits i.e. they’re available regardless of who caused the accident.

Which Benefits are Becoming Optional on July 1, 2026?

Important note: For existing policies, they will renew with the same Accident Benefits that they had prior to July 1, 2026. These existing policies will remain the same unless the consumer advises their broker in writing that they would like to make changes to their Accident Benefits and goes through the optionality process.

Confirmation of any changes to your Accident Benefits must be in writing.

The following coverages, which were previously mandatory, will become optional after July 1, 2026. Consumers may choose to add or remove any or all these benefits to their auto policy:

Weekly Benefits (an injured claimant may qualify for more than one of the weekly benefits, but may only claim one of the following benefits):

• Income replacement benefits: Helps replace income you or another covered person may lose because of an auto accident.
• Non-earner benefits: 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 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.

Housekeeping and Home Maintenance Benefits

• 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.

Death Benefit

• Compensates some family members if you or another covered person die due to an auto accident.

Funeral Benefit

• Helps cover some funeral costs if you or another covered person die due to an auto accident.

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.

Damage to Personal Items

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

Which Benefits are Remaining Optional?

These three benefits have always been optional under the Statutory Accident Benefits Schedule, and will remain optional benefits following July 1, 2026:

Dependant Care Benefit

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

Indexation Benefits

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

Tort Deductible

• There is a deductible amount subtracted from a settlement of court award for pain and suffering. An endorsement may be added to reduce the deductible by up to $10,000.

Who is Covered after July 1, 2026?

Although your current policy will renew with the same coverage and limits, who is covered under your policy for the newly optional accident benefits will change on July 1, 2026, regardless of your renewal effective date.

The above optional accident benefits will only apply to:

• The named insured on 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 automobile

In addition, auto insurance will become the “first payor” for accident-related medical and rehabilitation costs, meaning you will need to first exhaust your automobile insurance coverage before utilizing private health plans or workplace benefits.

This move was to allow your private health plans and employee benefits to remain available in case of a non-automobile accident or injury.

Why These Changes Matter to You

The shift to an insured’s choice model gives you more flexibility and control of which benefits you elect to have on your automobile policy.

Cautionary Note: This added optionality of benefits places more responsibility on you to assess your risks. In most cases, the standard mandatory benefits are not sufficient for most policyholders. In a serious accident, lacking certain optional benefits like income replacement could lead to financial hardship, especially if you’re unable to work.

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.

How Does this Affect Pedestrians, Cyclists, and Micro-Mobility Road Users?

In another twist, other road users, such as pedestrians, cyclists, micro-mobility riders on e-bikes and scooters, or those without their own car insurance policy, may face greater challenges.

Currently if an individual in those groups is struck by a vehicle, they can turn to the driver’s benefits to cover non-earner benefits, caregiver benefits, housekeeping expenses, lost educational expenses, or death benefits.

But come July 1, changes will restrict who is eligible for the optional accident benefits, even if the driver has purchased the coverages. The injured person will not have access to accident benefits and could result in more lawsuits to claim for damages.

In addition to buying the optional accident benefits, drivers should consider increasing their liability limits or buying an umbrella liability to anticipate an increase in lawsuits.

What Should You Do Next?

1. Review your current policy

• We strongly recommend reviewing your policy before July 1, 2026, to understand your current coverages.

2. Review your workplace or private benefits plan

• Avoid duplication, you may already have coverage through your workplace, private benefits plan, and/or life and health insurance providers.

3. Think about your needs and the needs of your family

• Consider what coverages are right for you and those that depend on you. Decide on the optional benefits that suit your lifestyle, occupation, and family needs.

4. Speak to your Broker

• Staebler Insurance Brokers are here to help. Whether you have questions about the optional benefits, need to compare costs and coverages, or consider scenarios that may apply to you, your independent Staebler Insurance Broker remains your best resource.
• In addition, Staebler Insurance has launched a new page with considerations and scenarios to help you decide for your unique situation: Accident Benefits Changing in 2026 – Staebler Insurance

Additional Resources

• OAP-1 (Copy of the updated Ontario Automobile Policy Owner’s Policy coverage wording): https://www.fsrao.ca/media/28946/download
• OAP-4 (Copy of the updated Ontario Garage Automobile Policy coverage wording): https://www.fsrao.ca/media/28941/download
• Ontario Regulation 34/10 (Statutory Accident Benefits Schedule): https://www.ontario.ca/laws/regulation/100034

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