Ontario Auto Insurance Changes – Effective July 1, 2026
Important changes are coming to Ontario Statutory Accident Benefit coverage on July 1, 2026. Here’s what you need to know.
What are Statutory Accident Benefits
Statutory Accident Benefits (SABs) are designed to provide financial support if you are injured in a car accident.
What Stays the Same
Medical, Rehabilitation and Attendant Care remain mandatory with a $65,000 limit for non-catastrophic impairments, and $1,000,000 for catastrophic impairments, for up to 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.
What is Changing
- First Payor: Before the reform, clients were required to use their private or workplace benefits first, if available, with SABs covering costs only after those limits were exhausted. As of July 1, 2026, auto insurance becomes the first payer for Medical and Rehabilitation claims (excluding medications), helping preserve private benefits for other potential needs.
- Who Is Covered Under Optional Accident Benefits: Currently, optional accident benefits apply to people insured on the policy, their spouses, and dependents. This coverage also may also apply to certain cyclists, pedestrians, and passengers injured in an accident. Starting July 1, 2026, this change applies only to Optional Accident Benefits coverage. Optional benefits will apply only to:
- the named insured
- their spouse and dependents
- drivers listed on the automobile insurance policy
Important: This change does not affect who is covered under the mandatory Medical, Rehabilitation, and Attendant Care. This change only applies to the optional coverages outlined below.
Some Statutory Accident Benefits coverages are now optional: These include Income Replacement, Non-Earner Benefits, Lost Educational Expenses, Expenses of Visitors, Housekeeping and Home Maintenance, Damage to Personal Items, Death Benefits, and Funeral Benefits.
While removing these optional coverages may save you a few dollars a month, it’s important to carefully consider your needs, as these coverages can provide valuable protection if you or an insured member of your household is injured in an automobile accident.
What Should You Do
Your current policy will renew with the same limits and coverages unless you submit a written request to amend your coverage. If the current coverage meets your needs, there is no action required on your part.
We recommend:
- Review external coverage, if applicable: While your SABs coverage is becoming first payor in the event of injuries following a claim, we encourage you to check if your personal or work benefits already provide similar coverage.
- For policies renewing as of July 1st or later: Review your renewal documents to determine the actual cost of each optional benefit.
- Consider your needs. If you are unsure about your personal needs regarding these optional coverages, click the button below to complete a self-assessment form to help you understand your new options.
- Talk to your broker at Rozon Insurance Brokers Ltd. Your trusted advisors at Rozon Insurance Brokers are here to help you navigate these changes, your broker will answer any questions you may have about the optional coverage.
Please note: Our team at Rozon Insurance Brokers Ltd. is working hard to provide clear resources about the upcoming changes. At this time, we’re unable to offer quotes for new premium options, as the reform takes effect July 1, 2026 and insurer systems are being updated to accommodate these changes. Since quotes are only valid for 30 days, we expect to have accurate pricing available starting around June 1, 2026.
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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.