Big changes are coming to
Let’s break down what these changes mean for you and your car insurance policy.
What are statutory accident benefits in Ontario?
Statutory accident benefits (SABS) can provide essential recovery support if you're injured in an automobile accident, regardless of who caused it. They can cover things like medical treatment and rehabilitation, and income replacement if you can't work because of your injuries.
How are Ontario’s accident benefits changing?
Starting July 1, 2026, the Ontario government is making most accident benefits optional to give drivers more choice and control over their auto insurance coverage.
What’s still mandatory
Medical, rehabilitation and attendant care benefits are still mandatory. These essentials cover things like physiotherapy and personal support if you’re injured in a car accident. Just like before, you can choose to buy extra coverage for these benefits if you want more protection.
What’s now optional
You now have the choice to add or remove other accident benefits that used to be automatically included. These newly optional benefits include:
- Income replacement: Helps cover your lost income if you can't work after an accident.
- Non-earner support: Helps if you’re injured, can’t carry on your day-to-day activities and don’t qualify for certain weekly benefits. Also called “non-earner benefit”.
- Caregiver benefit: Covers expenses if you can no longer care for a family member.
- Lost educational expenses: Reimburses fees you may have lost if you’re unable to continue school after an accident.
- Expenses of visitors: Helps pay for family members to visit you if you’re injured.
- Housekeeping costs: Helps with chores if your injuries prevent you from doing them. Also called “housekeeping and home maintenance”.
- Damage to personal items: Covers things like clothing, glasses and medical devices damaged in an accident.
- Funeral benefits: Helps cover funeral costs if you pass away because of a car accident.
- Death benefits: Provides money to certain family members if you pass away because of a car accident.
Dependant care benefits and inflation protection (also called “indexation benefit”) will also remain optional, just as they were before.
Why would you change your optional accident benefits?
Your needs can change, and your insurance should change with them.
For example, maybe you’ve had a kid or become a caregiver to an aging parent. You’ll want to ensure they’re looked after if you’re injured in an accident. With optional benefits, you can add dependant care or caregiver benefits to help pay for their care.
Or maybe you already have certain benefits through your job or a private insurance plan that you also have on your auto policy. With optional benefits, you can coordinate with work or private benefits and tailor your accident benefits to suit your situation. This means you don't have to pay for coverage you already have under those plans, or coverage you don't need.
What are the risks of opting out of optional accident benefits?
Accident benefits are there to help you with costs that happen after an accident. When you opt out of a benefit to save money on your premium, you're choosing to take on those costs yourself – and they can add up fast.
Consider the support you’ll need while you’re recovering, like:
- Income replacement
- In-home healthcare
- Help with housekeeping
If you opt out of a coverage, it means you’ll be paying out of pocket for this type of support.
And remember – you’ll need this coverage in place before an accident happens in order to use it.
Two more key changes happening on July 1, 2026
There are two more major changes happening to your coverage as part of Ontario’s auto reform.
Important! These start on July 1, 2026 – regardless of your renewal date.
Changes to who’s covered by optional accident benefits
The optional benefits you choose will now only apply to specific people on your policy:
- you (the named insured)
- your spouse
- your dependants, or your spouse’s dependants (like children or parents who live with you)
- anyone else listed as a driver on your policy
Your optional benefits will no longer cover:
- pedestrians, cyclists, or uninsured passengers who aren't in one of the groups above
So what happens if a pedestrian, cyclist or passenger gets hurt in a car accident? After July 1, they’ll no longer have access to key support to help them recover – like income replacement if they can’t work due to their injuries – if they don’t have their own insurance policy that includes the newly optional benefits. If they need these costs covered, they’ll have to sue the driver who injured them.
Your mandatory accident benefits will still apply to everyone, including pedestrians, cyclists and all passengers.
Changes to how you make certain claims
Also starting July 1, 2026, your auto insurance will be the first to pay for your medical and rehabilitation claims (except for medication expenses).
This means your auto insurer pays out before your workplace or private health plan. This change is designed to get you faster approvals and easier access to treatment, so you can focus on getting better. It also means you can save your other health benefits for when you need them most.
What do the changes to Ontario’s accident benefits mean for you?
If your policy is renewing on or after July 1, 2026: Your renewal date will trigger the new system. It’ll renew automatically with the same coverage and limits. You’ll be able to customize your optional benefits if you need to.
If you buy a new policy on or after July 1, 2026: If you're buying insurance for the first time or starting a new policy on or after July 1, 2026, you can choose the optional accident benefits you need during your quote – or change them after purchase.
What are your next steps?
After July 1st, here’s how to make sure you have the right coverage for your needs:
- Review your current auto policy. Take a look at the benefits you have now and understand what’s becoming optional. Review what they cover and what they don’t.
- Think about what you need. Everyone’s situation is different. Are you single, a parent or self-employed? Choose your benefits based on what you need.
- Check your other benefit plans. Do you have similar coverage through work or a private plan? Coordinate your benefits to avoid paying for the same thing twice.
- Talk to us. Have questions?
Contact us . We can help with coverage questions, and more. - Check your policy documents. Once you’ve made your choices, you’ll get an updated document that outlines the optional benefits you’ve selected and opted out of. Make sure you review it to ensure everything is correct.
Did you know? The Financial Services Regulatory Authority of Ontario (FSRA) has a checklist to help you choose the optional coverages that suit your needs.
These reforms are a big step forward in giving Ontario drivers more control over their auto insurance. We know this is a lot to take in, but we're here to make it simple and help you feel confident in your choices.
Frequently asked questions about Ontario’s new accident benefits
Who do these changes affect?
These changes to accident benefits apply to all drivers and auto insurance policies in Ontario.
This includes policies for:
- Cars
- Motorcycles
- Snowmobiles
- All-terrain vehicles (ATVs)
- Commercial vehicles
Who can purchase optional benefits under an auto insurance policy?
Every Ontario policyholder can customize their optional accident benefits to suit their needs.
How do I change my optional benefits?
Insured with Sonnet? It’s easy to change your benefits on your own. Just log into your account and edit your policy to customize your benefits in a few easy steps.
Not with us? Talk to your insurance company about their process – you may need to speak to an agent or broker.
Can I change my optional accident benefits after I’ve selected them?
Yes. It’s always a good idea to review your coverage if your situation changes. For example, if you start a new job, have children or become a caregiver, you may want to adjust your optional benefits. Doing this ensures you and your family are fully protected if an accident happens. Remember, only the coverage you have at the time of an accident will apply.
Am I covered when I rent a car?
Some accident benefits may apply when you rent a car. Review your policy and the car rental agreement to understand what you’re covered for.
What if I have an ongoing claim when my Ontario accident benefits take effect?
The coverage you had at the time of the accident will still likely apply to your claim. Have questions? Reach out to your insurance company.
Which benefits pay first if I have other health insurance?
If you're injured in a car accident, your auto insurance will now be the first to pay for most medical and rehabilitation costs, before your workplace or private health plan does. This change helps you save your other health benefits for different life events.
How will changing my benefits affect my price?
Changing coverages can definitely impact your premium, depending on what you’re adding, removing, or updating. But don’t just go for the best price – think about your situation and what support you’d need if you’re hurt in an accident.