April 2026
On July 1, 2026, Ontario will be making changes to its no-fault accident benefits legislation, meant to offer more choice in coverage to fit the needs and budgets of customers. Effective July 1, 2026, customers will have the option to opt out of most automobile accident benefits, except for medical rehabilitation and attendant care benefits.
Additionally, for accidents occurring on or after July 1, 2026, auto insurance will become the first payor for medical or rehabilitation claims (except medication expenses). That means auto insurance providers will pay for a claimant’s medical or rehabilitation expenses first if they’re injured after an accident, allowing customers to preserve their extended healthcare benefits for other life events.
Your insurance broker is a trusted advisor who works with you to make sure you have the most appropriate coverage, and that you understand/accept the risks associated with opting out of any coverages. Please talk to your broker if you have any questions.
What coverages are staying the same?
The benefits below will remain mandatory, and will be included on all auto insurance policies, as of July 1, 2026:
| Benefit | Additional information |
|---|---|
| Medical benefits | May cover some of the customer’s (or another covered person’s) medical expenses to recover from injuries from an accident. |
| Rehabilitation benefits | May cover some of the costs of rehabilitation therapy for the customer (or another covered person) if they’re injured in an accident. |
| Attendant care benefits | May cover some of the customer’s (or another covered person’s) personal care assistance costs if they’re injured in an accident. |
What coverages are changing?
The benefits below will be optional as of July 1, 2026:
| Benefit | Additional information |
|---|---|
| Income replacement | May help supplement income the customer (or another covered person) loses because of an accident. |
| Non-earner | If the customer (or another covered person) is a student or unemployed and an accident keeps them from leading a normal life, this may provide financial support while they recover. |
| Caregiver benefits | May cover some caregiving expenses if the customer (or another covered person) is injured and can no longer provide care for a household member who needs it, such as a child or aging parent. |
| Lost educational expenses | If an accident keeps the customer (or another covered person) from attending school or an education program, this benefit may help cover the costs they’ve lost. |
| Expenses of visitors | May cover reasonable and necessary expenses of visitors if the customer (or another covered person) is injured in an accident. |
| Housekeeping and home maintenance | May help cover costs if the customer (or another covered person) is unable to perform the housekeeping and home maintenance tasks normally done before the accident. |
| Damage to personal items | May cover the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids, etc.) that were damaged in an accident. |
| Death benefits | May compensate some family members if the customer (or another covered person) dies due to an accident. |
| Funeral benefits | May help cover some funeral costs. |
| Supplementary medical, rehab, attendant care benefits (previously optional) | May help cover expenses for medical benefits beyond the standard limits. |
| Dependent care benefits (previously optional) | May help cover reasonable and necessary additional expenses associated with caring for dependants such as a child, spouse, or aging parent. |
| Indexation benefits (previously optional) | May help to ensure certain weekly benefit payments and monetary limits are adjusted annually to reflect changes in the cost of living. |
Who’s covered?
Optional accident benefits under your auto policy will only cover the following individuals:
- The named insured
- The spouse of the named insured
- Dependants of the named insured and of the named insured’s spouse
- Persons specified in the policy as drivers of the automobile
Other vehicle occupants (passengers) and/or pedestrians who aren’t on the policy can’t access the policyholder’s optional benefits through accident benefits.
For existing customers, although existing policies will renew with the same coverage and limits, who is covered under policies for newly optional accident benefits will change on July 1, 2026, regardless of renewal effective date.
How are claims payouts changing?
For accidents occurring on or after July 1, 2026, auto insurance will become the first payor for medical or rehabilitation claims (except medication expenses). That means auto insurance providers will pay for a claimant’s medical or rehabilitation expenses first if they’re injured after an accident, allowing customers to preserve their extended healthcare benefits for other life events.
What do I need to do?
- Existing customers (policy renewals):
- Your policy will automatically renew with the accident benefits you had in your previous policy, even though some of them will now be optional.
- If you have a policy that renews on (or after) the July 1 effective date, you’ll receive notice of these changes with your renewal documents ahead of time.
- If you want to change your coverage and opt out of any of the now optional accident benefits, you can do so at renewal. We recommend discussing with your broker to ensure you make the decision that’s right for your situation.
- New customers:
- All new policies will include the three mandatory accident benefit coverages and you’ll have the option to enhance your policy with additional optional accident benefits that meet your needs.
- Your insurance broker is a trusted advisor who works with you to make sure you have the most appropriate coverage, and that you understand/accept the risks associated with opting out of any coverages. Please talk to your broker about the right coverage for your needs.
