Starting July 1, 2026, Ontario’s Statutory Accident Benefits Schedule (SABS) will change how accident coverage works for every driver. The update aims to simplify policies, but it also reduces what’s automatically included. If you drive, ride, or even walk near Ontario roads, these updates affect you. Understanding how these changes impact your Ontario auto insurance policies will be key to staying protected.
What Will Stay Mandatory
Under the new system, only three types of coverage will remain automatic under Ontario car insurance plans:
- Medical benefits – covers healthcare and treatment costs after an accident.
- Rehabilitation benefits – pays for recovery services like therapy and assistive devices.
- Attendant care benefits – supports people who need help with daily living tasks after an injury.
What Will Become Optional
Previously, Ontario drivers automatically received a wide range of benefits. From July 2026, you’ll have to choose and pay extra for most of them.
Optional coverage will include:
- Income replacement (lost wages if you can’t work)
- Non-earner benefits (for students, retirees, or those not employed)
- Caregiver and housekeeping benefits
- Visitor expense coverage
- Lost education benefits
- Death and funeral benefits
- Damage to clothing or personal aids
Skipping these options lowers your Ontario car insurance premium but leaves you exposed if you’re seriously injured or lose income after an accident.
Who Qualifies for Optional Benefits
Optional coverage won’t automatically extend to everyone. Only these groups can claim it under the 2026 system:
- The named insured (the person listed on the policy)
- Their spouse
- Their dependants
- Any listed driver on the policy
If you’re a pedestrian, cyclist, passenger, or unlisted family member, you may lose access to many benefits unless the policy explicitly includes you.
How to Prepare for Ontario’s 2026 Auto Insurance Changes
The new accident benefits system will reshape how Ontarians protect themselves after a collision. These six steps will help you stay informed, avoid coverage gaps, and make sound financial decisions before the rules take effect.
Check Your Current Policy
Review your existing Ontario auto insurance coverage and identify which benefits are included. Many people assume income replacement and caregiver support come standard, but these will soon be optional. Ask your insurer for a summary of your current benefits in plain language. Knowing exactly what you have now is the first step to seeing what you’ll lose or need to add back under the new structure.
Ask About Renewal Timing
Your renewal date determines when the new system applies. Policies that renew before July 2026 will stay under the old rules for the rest of that term, while anything renewing after that date automatically follows the new model. Knowing this date helps you plan ahead and avoid rushed decisions once the changes take effect.
Talk to Your Broker
Have a direct conversation with your broker to clarify what’s changing. Ask which benefits will disappear, how much the optional ones cost, and whether everyone in your household remains covered. A broker can also compare packages from different Ontario car insurance providers and help you understand the long-term value of keeping certain benefits. Request written confirmation of any advice or decisions for your records.
Review Your Workplace and Private Coverage
Before adding optional benefits, check what’s already covered by your employment or personal insurance. Some workplace plans include short-term disability, rehab, or caregiver benefits that may overlap with SABS coverage. Understanding where your protection starts and ends helps you avoid paying twice or being left without coverage when you need it.
Assess Your Risk
Think realistically about your situation. If you have dependents or rely on your income to support your family, losing income replacement coverage could be devastating. On the other hand, if you have strong workplace protection or savings, a leaner policy might make sense. Your comfort with financial risk should guide how much optional coverage you keep.
Questions About Ontario’s 2026 Auto Insurance Changes
Why is Ontario changing the system?
The province wants to simplify auto insurance and let drivers choose only the benefits they need. The trade-off is less automatic protection and more personal responsibility. The goal is flexibility, but it shifts the burden of understanding coverage from insurers to consumers.
Will my premiums drop automatically?
Not necessarily. You might save if you remove optional benefits, but higher claim costs and new first-payer rules could offset that. Your premium will depend on your insurer, location, and how much coverage you keep. In some cases, those who retain full benefits could pay more if insurers adjust rates to manage risk.
I’m not a driver. Am I still covered if I’m hit by a car?
You’ll still receive the basic medical, rehab, and attendant-care benefits, but anything beyond that depends on the driver’s policy and your eligibility. If you’re not listed or covered under their plan, you could lose access to income or caregiver benefits. Pedestrians and cyclists may face more out-of-pocket costs unless the at-fault driver’s insurer accepts liability.
What happens if I can’t afford optional benefits?
You’ll still get the mandatory medical, rehab, and attendant-care coverage, but financial recovery after an accident could become much harder. Without income replacement or caregiver benefits, you may need to rely on savings, employment insurance, or legal action to recover costs. If affordability is an issue, talk to your broker about partial add-ons or lower coverage limits instead of cutting them entirely. Some protection is better than none.
How will this affect families with multiple drivers or dependents?
Coverage will no longer extend automatically to everyone in your household. Only the named insured, their spouse, dependents, and listed drivers are covered for optional benefits. If you have a teen driver or adult child using your car, make sure they’re properly listed. Even non-driving dependents should be reviewed, as their eligibility for certain benefits could change under the new system.
Protect your future with guidance from Keller & Associates Insurance Brokers. Our experienced team helps you compare Ontario car insurance options, understand new policy changes, and choose the best Ontario auto insurance coverage for your needs. Contact Keller & Associates today to review your policy before the 2026 updates take effect.