2026 Accidents Benefits Reform Ontario
Important Changes to Ontario Accident Benefits
Effective July 1, 2026
Ontario’s automobile insurance system is changing. As of July 1, 2026, the province is introducing major reforms to Statutory Accident Benefits (SABS). These changes affect every Ontario driver, regardless of insurer, and may significantly impact the coverage available after an accident.
This page is designed to help you understand what is changing, what it means for you, and why reviewing your coverage is important.
What Are Accident Benefits?
Accident benefits are part of Ontario’s no‑fault auto insurance system. They provide support such as medical treatment, rehabilitation, attendant care, and income replacement if you are injured in a motor vehicle accident—regardless of who is at fault.
Historically, most accident benefits were automatically included in every policy. As of July 1, 2026, this will no longer be the case.
What Is Changing on July 1, 2026?
Ontario is moving from a mostly standardized accident benefits package to a more optional structure.
Benefits That Will Remain Mandatory
The following benefits will continue to be included in all Ontario auto insurance policies:
- Medical expenses
- Rehabilitation expenses
- Attendant care benefits
These ensure access to essential care and treatment following an accident.
Benefits That Will Become Optional
The following benefits will no longer be automatically included and must be actively selected:
- Income replacement benefits
- Non‑earner benefits
- Caregiver benefits
- Housekeeping and home maintenance
- Lost educational expenses
- Visitor expenses
- Damage to personal items
- Death and funeral expenses
If these benefits are not selected, they will not apply, even if they would have been available under the previous system.
Important Change to Injury Coverage
As of July 1, 2026, Ontario is also changing how injury coverage is defined in auto insurance policies.
What Is Changing?
Under the previous system, injury coverage distinguished between:
- Catastrophic injuries, and
- Non‑catastrophic injuries
Under the new system, injury coverage will be grouped under one broader category called “an impairment.”
This new definition is intended to include both serious (catastrophic) and less severe (non‑catastrophic) injuries under a single framework.
Why This Matters
If you previously purchased coverage based on the catastrophic impairment definition, it is important to understand that:
- The new “impairment” definition is broader than the old catastrophic‑only wording.
- Because existing policies continue with their original wording, some clients who keep the old catastrophic structure may actually have less coverage than someone insured under the new impairment definition.
- In certain situations, the newer impairment wording may respond to a wider range of serious injuries than the older catastrophic‑only definition.
In other words, what was once considered the highest level of coverage may not automatically offer the broadest protection under the new framework.
Our Recommendation
Do not assume that keeping older catastrophic wording automatically gives you the best coverage. Likewise, do not change coverage based on wording alone.
Because this change affects how injuries are defined and covered, we strongly recommend reviewing your injury coverage carefully and speaking with a licensed insurance professional before making any decisions.
Small differences in coverage wording can have a significant impact following an accident.
An Important Improvement: The “First Payer” Rule
One positive change is that auto insurers will now become the first payer for mandatory medical, rehabilitation, and attendant care benefits.
This means injured individuals will no longer be required to use workplace or private health benefits first, which can help reduce delays in accessing treatment and care.
Why Reviewing Your Coverage Is More Important Than Ever
Because of these changes:
- Accident benefits will no longer be the same for every driver.
- Coverage wording and definitions matter more than ever.
- Small decisions today could affect protection after an accident.
Understanding your options before making changes can help prevent unexpected gaps in coverage.
These changes apply to all Ontario auto insurance policies and can be complex. Our team is available to help you understand how the new rules may affect you and to review your coverage options.
If you have questions or would like to review your policy, please contact us.
This information is provided for general guidance only and does not replace policy wording or professional advice.