What is the Ontario auto reform?
Starting July 1, 2026, Ontario auto insurance policies are changing in a significant way. Benefits that were previously included as standard are becoming optional, giving you more choice and control over your Statutory Accident Benefits (SABs) coverage. SABs are no-fault benefits, which means they’re available to you regardless of who caused the accident.
The most important thing to know: medical, rehabilitation, and attendant care benefits will remain mandatory. Most other accident benefits will become optional, and you’ll need to actively review and select coverage based on your needs and financial situation.
These changes apply to both Personal Lines and Commercial Lines auto insurance in Ontario. Whether you drive a personal vehicle or manage a fleet, now is the time to review your coverage.
Quick summary of the Ontario auto reform
What stays mandatory
- Medical benefits
- Rehabilitation benefits
- Attendant care benefits
What becomes optional
- Income replacement benefits
- Non earner benefits
- Caregiver benefits
- Housekeeping and home maintenance
- Dependant care
- Lost educational expenses
- Visitor expenses
- Damage to personal items
- Death and funeral
- Indexation benefits
Ontario auto reform breakdown
Ontario auto policies have included a broad package of standard accident benefits automatically. Most drivers haven’t had to think much about what’s included, as the coverage was simply there. That’s about to change.
Only medical, rehabilitation, and attendant care benefits will remain mandatory.
Benefits like income replacement, caregiver support, and death and funeral coverage will become optional, meaning they won’t be included in your policy unless you actively select them.
Your policy will renew automatically with your current coverage and limits. Nothing changes unless you actively choose to remove optional benefits in writing. Starting July 1, 2026, you can choose to remove benefits that have become optional, but it’s important to understand what that means for you before making any decisions.
Before making changes, review your personal and workplace benefits to see what coverage you already have. Opting out of certain SABs might lower your premium in the short term, but if you’re in an accident, it could cost you significantly more in the long run. Talk to a Westland advisor before your renewal date.
Choosing less coverage can reduce your premium, but it can also leave you and your family with serious financial gaps after an accident. Accident benefits are designed to support your recovery, covering lost income, caregiving costs, home maintenance, and more, at a time when you’re least able to manage those pressures on your own.
The reform gives you more choice, but more choice means more responsibility. Understanding what you’re selecting, and what you’re giving up, is the most important thing you can do before July 1, 2026.
For Personal Lines clients
The reform affects Ontario drivers and households: If you own or lease a personal vehicle in Ontario, your accident benefit options should be reviewed before or at renewal.
Optional benefits protect more than the vehicle: Accident benefits are about injury recovery and financial support after an auto accident. They can help with income, care, household support, funeral costs, and other needs depending on the coverage selected.
Who’s covered under optional benefits: For personal auto policies, optional accident benefits cover the named insured, the spouse of the named insured, dependants of the named insured and their spouse, persons specified in the policy as drivers. Passengers, pedestrians, or cyclists may not have access to optional benefits unless they fall into one of those covered groups.
Do not choose based on price alone: A lower premium may look attractive, but removing benefits can shift more financial risk to you and your family after a serious accident.
What you should review
- Your income and how long you could manage financially after an accident
- Your household and family responsibilities, including caregiving needs
- Whether you have workplace benefits or other health coverage that could fill gaps
- Which drivers are listed on your policy and whether their needs are covered
For Commercial Auto and Fleet clients
The reform affects business vehicles, commercial auto, and fleet policies: The reform applies to Ontario commercial auto policies that include Statutory Accident Benefits (SABs).
Who’s covered under optional commercial vehicle benefits: Optional accident benefits will only apply to drivers who are specifically listed on your policy. Employees, owners, or family members who drive company vehicles are not automatically covered for optional benefits unless they are listed as drivers.
Fleet risk should be reviewed, not assumed: Businesses should consider who uses company vehicles, how often vehicles are used, and how a coverage gap could affect operations. Before making any decisions about optional benefits, employers should review their existing employee benefits and disability coverage to understand what protection is already in place.
What you should review
- Which employees drive company vehicles and whether they’re properly listed
- What employee benefits and disability coverage your business already has in place, and review this with your benefits provider before opting out of or reducing optional accident benefits.
- Whether your current benefits limits reflect how vehicles are actually used
- How coverage gaps could affect your operations and your duty of care to employees
Your Ontario auto insurance reform questions, answered
The changes start on July 1, 2026.
No. The accident benefit changes apply to all Ontario auto customers as of July 1, 2026. Renewal packages will include information, but clients should start reviewing their options before then.
Existing policies are expected to renew with the same coverages and limits unless the customer requests a change in writing. However, the structure of the coverage is changing, so clients should review their options carefully.
No. Your policy will renew automatically with your existing coverage and limits. Optional benefits won’t be removed unless you actively choose to opt out in writing. That said, we recommend reviewing your coverage before renewal — especially if your income, household, or caregiving situation has changed since you last updated your policy.
Medical, rehabilitation, attendant care, and cost of examinations remain mandatory.
Several benefits become optional, including income replacement, non earner, caregiver, housekeeping and home maintenance, dependant care, death and funeral, and indexation benefits.
Yes. If your business auto, commercial auto, or fleet policies include Statutory Accident Benefits, the same changes apply. Optional benefits that were previously standard will need to be actively selected going forward. Talk to an advisor to review your business coverage before your renewal date.
Not without understanding the risk. Reducing optional benefits may lower cost, but it can also reduce financial protection after an accident.
Yes, you can adjust your optional benefits at renewal, or in some cases mid-term. Keep in mind that adding benefits after an accident has already occurred is not permitted, so it’s important to review your coverage before you need it, not after.
The information on this page is a summary of the changes to Statutory Accident Benefits under Ontario Regulation 34/10. Do not rely on this summary alone. For full details, refer to the updated SABs wordings available at fsrao.ca or speak with a Westland insurance advisor.
Review your auto coverage before July 1, 2026
These changes create more choice, but also more decisions. Choosing less coverage may lower your premium, but it can also leave you with serious gaps after an accident. Our advisors are here to help you understand what's changing and find the right coverage for your household, drivers, or business vehicles.
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