On July 1, 2026, Ontario automobile insurance policies are undergoing sweeping changes, which will make many accident benefits optional, unless specifically purchased by the policyholder(s).
As of July 1, 2026, the benefits that will remain mandatory and included with every automobile insurance policy in Ontario are medical, rehabilitation, and attendant care benefits. These benefits cover things like treatments (physical, psychological, etc.), therapy, rehabilitation, and assistance with personal care needs after a car accident.
Almost everything else will become optional benefits that must be added by you to your automobile insurance policy.
What benefits are becoming optional?
Here are the main accident benefits that will no longer be automatically included for NEW automobile insurance policies purchased on or after July 1, 2026:
Income Replacement Benefits may pay up to 70% of your gross pre-accident income if you cannot return to work because of injuries from a motor vehicle accident.
Non-Earner Benefits may be payable to someone who was not working at the time of the accident, such as a student, retiree, or unemployed person, if their injuries cause the insured person a complete inability to complete their normal daily life activities.
Caregiver Benefits may cover the cost of care if the injured person was responsible for caring for someone else, such as a child, elderly parent, or dependent.
Housekeeping and Home Maintenance Benefits may pay you to hire a housekeeper to complete household tasks, such as cleaning or basic home maintenance, if the injured person can no longer complete them because of their injuries.
Lost Educational Expenses may be payable if you have sustained education-related costs (such as lost tuition money) if a motor vehicle accident prevents you from continuing or completing your full-time education.
Visitor Expenses may cover some costs for family members or loved ones to visit an injured person in a hospital following a motor vehicle accident.
Damage to Personal Items may be payable to cover items damaged or replace following a motor vehicle accident, such as clothing, glasses, hearing aids, or other personal belongings.
Death and Funeral Benefits provide financial support to certain family members and help cover funeral expenses if a loved one passes away because of an unfortunate motor vehicle accident.
Fewer people will be covered!
Another important change is who is actually covered and has access to these optional benefits. Starting July 1, 2026, optional benefits will generally only apply to:
- the named insured or policyholder;
- the policyholder’s spouse;
- the dependents of the policyholder and/or the policyholder’s spouse; and
- listed drivers on the policy.
In other words, other unrelated passengers, pedestrians, cyclists, friends, or other people involved in an accident may not have access to optional benefits unless they fall into one of four categories above. Mandatory benefits (including medical, rehabilitation, and attendant care benefits) may still apply, but the optional accident benefits may not.
Why this matters?
This change may give drivers more flexibility when choosing insurance, but it also creates a real risk. A cheaper policy may be seem appealing at renewal, but it may also mean important benefits have been removed and will NOT be payable by your insurance company following a motor vehicle accident.
The issue is that many people do not think about these benefits until after an accident happens. By then, it is too late. The automobile insurance coverage that applies is the coverage you held on the date of the subject accident.
What should drivers do?
Before renewing or buying automobile insurance on or after July 1, 2026, Ontario drivers must review which accident benefits are specifically included in their policy. Do not just look at the monthly price. Ask your broker, agent, or insurer the following simple questions:
- What accident benefits are included in my policy?
- What accident benefits are optional that I can add to my policy?
- How much is each optional accident benefits?
- What happens if I cannot work after an accident?
- Will my passengers be covered in an accident?
- Do I already have similar coverage through work or private insurance?
The main takeaway is that as of July 1, 2026, Ontario drivers will have more choices, but also more responsibility to make an informed decision.
Before removing or declining optional benefits, make sure you understand what you are giving up. For these reasons, we highly encourage you to contact our experienced personal injury team at MAZI LAW for a FREE consultation: 416-229-6000.