On July 1, 2026, Ontario made its biggest change to auto accident benefits since 2016. Under Ontario Regulation 383/24, which amends the Statutory Accident Benefits Schedule (SABS), most of the benefits that used to be built into every auto insurance policy are now optional. Unless you buy them, they will not be there after a crash.
If you have been injured in a car accident or are worried about what your policy still covers, here is what changed in plain language and what to do about it.
Accident Benefits Are Now Optional in Ontario: What Does That Mean for You?
Every Ontario auto policy used to include a standard package of accident benefits: no-fault support you could claim regardless of who caused the crash. As of July 1, 2026, only three of those benefits remain mandatory, as confirmed by the Financial Services Regulatory Authority of Ontario (FSRA): medical benefits, rehabilitation benefits, and attendant care benefits.
Everything else is now optional coverage you must choose and pay for. That includes income replacement, the non-earner benefit, the caregiver benefit, housekeeping and home maintenance, lost educational expenses, expenses of visitors, damage to personal items, and death and funeral benefits. Unless one of these is on your policy, it will not be available after an accident.
The change applies to policies purchased or renewed on or after July 1, 2026, and covers all Ontario auto policies, including private passenger vehicles, commercial vehicles, motorcycles, snowmobiles, and ATVs.
Income replacement: the change that matters most
The income replacement benefit (IRB) pays a portion of your income if injuries from a car accident keep you from working: 70% of gross earnings, up to $400 per week under the standard benefit. Before July 1, everyone had it automatically. Now, it exists only if it is on your policy.
That $400 weekly cap has not increased in decades, and for most working people it already falls well short of a paycheque. Higher optional limits can be purchased, but the starting point has shifted: the question is no longer “how much income replacement do I have?” but “do I have any at all?”
Many people assume workplace benefits will fill the gap. Before dropping this coverage, check carefully. Short-term and long-term disability plans have their own eligibility rules, waiting periods, and limits, and not every job offers them. If you rely on your income to support yourself or your family, this is the benefit to think hardest about.
Who Is No Longer Automatically Covered?
There is a second change that received less attention but may matter even more. According to the Insurance Bureau of Canada, the optional benefits now apply only to the named insured, their spouse, their dependants, and the drivers listed on the policy.
That means pedestrians, cyclists, and passengers who do not fall into one of those groups can no longer access the optional benefits through the driver’s policy. A cyclist struck by a car, for example, still has access to the mandatory medical, rehabilitation, and attendant care benefits, but not to income replacement or the other optional benefits unless someone in their own household carries an auto policy that includes them.
Households where no one owns a car or holds an auto policy have no way to access the optional benefits at all.
Your Auto Insurer Now Pays First
One quieter change: for medical and rehabilitation expenses (other than medication), your auto insurer is now the first payor, ahead of your workplace or private health plan. Under the old rules it was usually the reverse. Practically, this means your treatment claims after an accident go to your auto insurer first, which can preserve your extended health benefits for other needs.
Who Is Affected by the Changes?
If your accident happened before July 1, 2026, these changes do not affect your claim. The coverage in place on the date of your accident is what governs, and that stays true no matter when your claim resolves. The claim forms have been updated, but the process and your deadlines remain the same, including the requirement to notify the insurer within seven days and submit your application for accident benefits within 30 days of receiving the forms.
If an adjuster suggests the new rules limit a pre-July claim, that is not how the regulation works. It is worth getting advice before accepting any position, or any settlement, based on the new framework.
What This Means For Tort Claims
Ontario’s system has two lanes. Accident benefits come from your own insurer regardless of fault. A tort claim is a separate claim against the at-fault driver for losses the benefits do not cover, such as income loss beyond the benefit limits and compensation for pain and suffering.
When accident benefits are thinner, the tort lane carries more weight. Someone injured by a negligent driver without income replacement coverage may need to look to the at-fault driver’s insurer to recover lost income. These claims involve deadlines, deductibles, and thresholds, and how your available benefits interact with a tort claim can affect what you recover. A car accident benefits lawyer can help you understand how the two claims fit together in your situation.
Next Steps for Policyholders and Accident Victims
If you are renewing a policy, your existing coverage automatically carries over, and nothing is removed unless you agree to it in writing. Review what your workplace benefits actually cover before dropping anything, and remember that news coverage of the changes suggests opting out of the optional benefits typically saves only a small amount each month.
If you have been injured in an accident, act on your deadlines, keep records of your treatment and lost income, and get advice before signing anything. Whether your accident falls under the old rules or the new ones, understanding what you are entitled to, both from your own insurer and from an at-fault driver, is the first step. HSK Law offers free consultations to help you understand your options.
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