More choice, more control: Ontario’s auto insurance reforms put you in the driver’s seat

Starting July 1, 2026, Ontario is making changes to auto insurance to give drivers more choice and flexibility. Drivers will be able to choose benefits to fit their needs. Medical, rehabilitation and attendant care benefits will remain mandatory to ensure everyone has access to essential recovery support. All other accident benefit coverages, such as income replacement, will become optional. Who is covered for these optional benefits under your policy will also change.

Standard medical, rehabilitation, and attendant care benefits will continue to be included in all auto insurance policies. You can still purchase additional or increased benefits (such as supplementary medical/rehabilitation/attendant care, dependant care, and indexation).

• Income replacement: Helps replace income you or another covered person may lose because of an auto accident.
• Non-earner: 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.
• 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.
• Housekeeping and home maintenance: 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.
• 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.
• Death benefits: Compensates some family members if you or another covered person die due to an auto accident.
• Funeral benefits: Helps cover some funeral costs if you or another covered person die due to an auto accident.

Supplementary medical, rehabilitation and attendant care benefits, dependant care benefits, and indexation will continue to be optional.

Optional benefits will only apply to:

• The named insured
• The spouse of the named insured
• Dependants of the named insured and the named insured’s spouse
• Persons specified in the policy as drivers of the automobile

This may mean some people—such as pedestrians, cyclists, and certain passengers—may no longer be eligible unless they fit into the categories above.

Your current coverage and limits will automatically continue unless you tell your broker you want to make changes. It’s a good idea to review your policy and decide whether you’d like to keep, add, or remove optional coverage. Who is covered under your policy for newly optional benefits will change on July 1, 2026, regardless of renewal effective date.

For Caregiver and Housekeeping and Home Maintenance benefits, existing customers may be able to keep their current coverage, choose the new standard optional coverage for impairments, or decline these coverages entirely.

Starting July 1, 2026, new customers may choose which optional accident benefits to purchase. Ask your broker which benefits are included in your quote—and consider whether adding optional benefits makes sense for you.

• Review your current coverage (if you’re an existing customer). Know what benefits you already have today through your auto insurance policy.
• Check workplace/private benefits to avoid duplication. You may already have coverage through your employer, private benefits plan, or life and health insurance providers.
• Think about your household needs (income, caregiving responsibilities, school, etc.). Consider which coverage is right for you and whether opting out is practical. Use this quick Self-Assessment Tool to help determine your coverage needs.
• Speak to your broker for guidance. They can help explain your options in relation to your auto insurance coverage.

If you choose to remove benefits that have now become optional from your existing coverage, it may impact your premium, Your broker can help you determine the premium impact your choices may make.

Talk to your broker about how these changes may affect you or your employees, and what options may be appropriate based on your business needs.