EFFECTIVE JULY 1, 2026, Ontario is making auto insurance more flexible. Some accident benefits that were previously included in every auto insurance policy will become optional, giving you more choice to select coverage that fits your needs and budget.
WHAT ARE STATUTORY BENEFITS?
Statutory Accident Benefits (SABS) provide financial support if you are injured in a car accident. These benefits are available regardless of who caused the accident and can cover things like medical treatment, rehabilitation and income if you can’t work because of your injuries.
MANDATORY ACCIDENT BENEFIT COVERAGE
There has been no change to the Medical, Rehabilitation and Attendant Care at $65,000 for non-catastrophic impairments, and $1,000,000 for catastrophic impairments, limited to a maximum period of 5 years.
These limits can still be increased through optional benefits to $130,000 for non-catastrophic impairments with the same 5-year time limit. Another optional benefit remains to increase the limit to $1,000,000 for non-catastrophic impairments and $2,000,000 for catastrophic impairments with no 5-year time limit. There remains a third optional benefit to purchase an additional $1,000,000 limit for catastrophic impairments.
OPTIONAL ACCIDENT BENEFIT COVERAGE
INCOME REPLACEMENT BENEFIT
May replace lost income in the event of injuries sustained in an automobile accident. The weekly limits available are $400, $600, $800, or $1000.
EXAMPLE: A self-employed worker is in a car accident resulting in injuries. After an examination, the doctor recommends no physical labour during her recovery. WITH THIS OPTIONAL COVERAGE: She will benefit from a non-taxable weekly salary (the amount depends on the option purchased) to replace lost income during the recovery period. WITHOUT THIS OPTIONAL COVERAGE: She is self-employed, with no paid medical days or private insurance coverage there will be no source of income during recovery. |
NON-EARNER BENEFIT
May provide financial support while recovering from injuries sustained in an accident for insureds who are currently not earning an income, such as a student or an insured person currently between jobs.
EXAMPLE: The insured is currently unemployed and was injured in a car accident, resulting in a concussion and a broken arm. Due to his injuries, he had to stop volunteering activities and now struggles with memory issues making it difficult to resume usual activities. He is unemployed so is not eligible for income replacement. WITH THIS OPTIONAL COVERAGE: It is determined that the insured is unable to resume normal day to day activities after the standard waiting period so is now eligible for payment under NEB as the impairments are limiting his ability to conduct his previously normal activities. WITHOUT THIS OPTIONAL COVERAGE: He has no financial compensation during the extended recovery period. |
LOST EDUCATION EXPENSE BENEFIT
May provide expense reimbursement if injuries resulting from a car accident prevent the insured from attending school or an education program.
EXAMPLE: The insured suffers a concussion and a broken clavicle in a car accident halfway through her semester and must drop her full-time courses. WITH THIS OPTIONAL COVERAGE: She can apply for reimbursement for the cost of her prepaid tuition and related academic fees. WITHOUT THIS OPTIONAL COVERAGE: She loses the money paid for the lost semester and must re-roll in the same courses at her own expense when she is recovered enough to return to school. |
CAREGIVER BENEFIT
May cover caregiving expenses if you or another insured person on your policy is injured and can no longer provide care for a household member such as a child or aging parent who needs assistance.
This coverage was previously limited to catastrophic injuries. Effective July 1, 2026, clients will have the option to purchase coverage for all impairments under this endorsement. Please note: upon renewal after July 1, your policy will default to coverage for catastrophic injuries only. Contact your broker if you would like to expand coverage to include all impairments.
EXAMPLE: Insured is a father of two young children; he works part-time and is also the primary caregiver for his children. He is involved in a serious car accident and sustains multiple fractures and a shoulder injury that leaves him unable to lift, cook, drive etc. WITH THIS OPTIONAL COVERAGE: He could be indemnified for reasonable caregiving expenses up to policy limits (currently $250 for the first child and $50 for the second child weekly) and payments would continue until he no longer meets the threshold for disability. WITHOUT THIS OPTIONAL COVERAGE: The family must pay out of pocket to hire someone to care for the children during his recovery period. |
EXPENSES OF VISITORS BENEFIT
May cover reasonable and necessary expenses of visitors if you or another insured person is injured in an accident.
EXAMPLE: The insured is a university student living in Toronto. She is badly injured in a motor vehicle accident and is admitted to a rehabilitation center to recover from a severe traumatic brain injury. Her doctors recommend that her parents travel from Thunder Bay to visit and support her through her recovery. WITH THIS OPTIONAL COVERAGE: Her parents can apply for reimbursement for travel expenses, such as flights, hotel expenses, hospital parking fees, and reasonable meal expenses. WITHOUT THIS OPTIONAL COVERAGE: Her parents would pay out of pocket for all travel-related expenses. |
HOUSEKEEPING/MAINTENANCE BENEFIT
May cover costs if you or another insured person is unable to perform the housekeeping and home maintenance tasks normally done before the accident.
This coverage was previously limited to catastrophic injuries. Effective July 1, 2026, clients will have the option to purchase coverage for all impairments under this endorsement. Please note: upon renewal after July 1, your policy will default to the current coverage for catastrophic injuries only. Contact your broker if you would like to expand coverage to include all impairments.
EXAMPLE: The insured is a homeowner that lives with his wife and two children. Before his accident, he was the primary caretaker at home and was responsible for chores like snow removal, minor home repairs, laundry, and taking out the garbage. He is involved in a serious motor vehicle accident and sustains multiple spinal fractures. He is later deemed to have sustained a catastrophic impairment due to permanent physical limitations. WITH THIS OPTIONAL COVERAGE: His family could be indemnified for expenses related to home maintenance and housekeeping, helping cover the cost for hired services. WITHOUT THIS OPTIONAL COVERAGE: His family must pay out of pocket to hire professionals to complete the tasks he is now unable to perform. |
DAMAGE TO PERSONAL ITEM BENEFIT
May cover the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids, etc.) that were damaged in an accident.
EXAMPLE: Insured is involved in a serious car accident. She was wearing prescription sunglasses, a knee brace, and a winter coat and these items were damaged beyond repair in the collision. WITH THIS OPTIONAL COVERAGE: She would be eligible for reimbursement for the cost of replacing the damaged items she was wearing during the collision. WITHOUT THIS OPTIONAL COVERAGE: The cost of the sunglasses, knee brace, damaged clothing etc. would need to be paid out of pocket. |
DEATH BENEFIT
May compensate some family members if you or another insured person dies due to an accident.
EXAMPLE: Insured is a married father of two young children. As he is driving home from work, his vehicle is struck by an 18-wheeler and he suffers catastrophic injuries. Despite emergency treatment, he passed away three days later because of his injuries. WITH THIS OPTIONAL COVERAGE: Based on current limits, his spouse would be eligible for a lump sum of $25,000 and each dependent child is entitled to $10,000. WITHOUT THIS OPTIONAL COVERAGE: His family members would not receive any compensation following his death. |
FUNERAL BENEFIT
May cover some costs associated with funerals.
EXAMPLE: The insured is involved in a serious motor vehicle accident. She suffers fatal internal injuries and passes away later that day as a direct result of the injuries she sustained in the accident. WITH THIS OPTIONAL COVERAGE: Her family would be reimbursed up to the current limit ($6,000) to help cover funeral expenses. WITHOUT THIS OPTIONAL COVERAGE: Her family would not receive any funds towards her funeral expenses. |
SUPPLEMENTARY MEDICAL, REHABILITATION, AND ATTENDANT CARE BENEFIT
Increases the standard limits included on the mandatory medical, rehabilitation, and attendant care benefit included on the policy.
EXAMPLE: The insured is injured in a car accident and requires physiotherapy, chiropractic care, and some help at home while he recovers. Optional Benefit #1: Increase the standard limit of $65,000 to $130,000 for non-catastrophic injuries. If he had purchased this option:
This helps if his recovery takes longer or costs more than expected, but still fits within that 5-year window. Optional Benefit #2: This benefit option increases the limit to $1,000,000 for non-catastrophic injuries and $2,000,000 for catastrophic injuries with no time limit. If the insured chose this higher level of protection:
Optional Benefit #3: Adds an extra $1,000,000 for catastrophic injuries. If he also added this option:
WITHOUT THESE OPTIONAL COVERAGES: The standard limits would apply. |
INDEXATION BENEFIT
Helps to ensure that certain weekly payments and monetary limits are adjusted annually to reflect changes in the cost of living.
EXAMPLE: The insured is involved in a serious motor vehicle accident and is collecting $600 weekly under the income replacement benefit during her lengthy recovery. WITH THIS COVERAGE: The weekly payments would be evaluated and possibly increased to reflect inflation rates annually. WITHOUT THIS OPTIONAL COVERAGE: The standard limits would apply with no increase for inflation. |
We encourage you to click the button below to complete the Accident Benefit Self-Assessment Checklist to better understand your individual needs.
In the event of any discrepancy between this information and the policy wording, the policy wording issued by the insurance company shall take precedence and will govern the outcome of any claim.