Starting July 1, 2026, Ontario is rolling out changes to auto insurance: several accident benefits that are currently mandatory will become optional. While these changes give drivers more flexibility and choice, it’ll be more important than ever to be fully informed on each coverage type. Acera Insurance advisors are here to help you understand the options and choose coverage that best fits your needs.
What’s staying the same for auto insurance in Ontario?
Medical, rehabilitation and attendant care benefits will continue to be mandatory and included in every policy. These cover costs for medical treatment, therapy and help with personal care or daily activities, and are available regardless of who is at fault in an accident.
Supplementary medical, rehabilitation and attendant care, dependent care and indexation benefits – which provide annual inflation adjustments to certain ongoing benefits (e.g., income replacement) – will continue to be optional coverages.
What changes are coming for auto insurance in Ontario?
Several accident benefits will become optional
Starting July 1, 2026, drivers will be able to choose whether to include the following accident benefits in their policies:
Income replacement: Covers income lost by you or another person covered under your policy as a result of injuries suffered in an accident.
Non‑earner benefit: Provides financial support if you or another person covered under your policy are either unemployed or a student and unable to lead normal lives due to an injury from an accident.
Caregiver benefit: Covers the cost to hire a caregiver if you or another person covered under your policy is injured in an accident and are unable to continue providing care for a household member (e.g., a child or elderly parent).
Lost educational expenses: Covers costs of tuition, books and room and board if you can no longer attend school or an education program following an injury from an accident.
Visitor expenses: Helps cover expenses incurred by family members who travel to provide support if you or another person covered under your policy is injured in an accident.
Housekeeping and home maintenance: Covers costs to hire help for housekeeping and home maintenance that you or another person covered under your policy would have normally done prior to an accident.
Damage to personal items: Covers costs to repair or replace personal items (e.g., clothing, glasses, personal medical devices, etc.) damaged in an accident.
Death and funeral benefits: Compensates some family members and covers some funeral costs if you or another person covered under your policy dies in an accident.
Depending on factors such as employment, family responsibilities and lifestyle, these optional accident benefits provide important protection that can be difficult to replace. It’s important to understand what each one covers and whether you already have similar coverage elsewhere.
Who is covered under optional accident benefits
As of July 1, 2026, who is covered under optional accident benefits will change even if you renew your policy with the same coverages – regardless of your policy renewal date. Individuals covered will include:
- The named insured (the person whose name is listed on the policy declarations page)
- The spouse of the named insured
- Dependents of the named insured or their spouse
- Other drivers specifically listed on the policy
Pedestrians, cyclists and any passengers who are not any of the above will no longer be covered by optional benefits, although statutory accident benefits (mandatory coverage) will still apply.
Who pays first after an accident if you have supplemental health insurance
If you have coverage under workplace benefits or a personal health insurance plan, your auto insurance policy will pay out first for medical and rehabilitation expenses (excluding medications) following an accident. This means you can save your supplemental coverage for other situations where you may need it.
How optional accident benefits apply in real life
Everyone’s personal circumstances are unique. The following examples illustrate how optional accident benefits may be relevant in different situations.
A single parent with no workplace benefits
A single parent relies on their vehicle for work, childcare and daily errands. If they’re injured in an accident, they would struggle financially and face challenges managing everyday parental responsibilities. Optional benefits like income replacement, caregiver benefits and housekeeping and home maintenance could help maintain stability during recovery.
The retired widow or widower
This individual lives alone on a fixed income which covers everyday expenses but doesn’t leave much flexibility for unexpected costs. If they were injured in an accident, coverages that could help ease recovery include visitor expenses (to cover travel costs for family providing support), housekeeping and home maintenance while they are unable to manage these tasks themselves, as well as supplemental medical, rehabilitation and attendant care beyond standard limits.
A university student living away from home
This student relies on their car to get to school and their part‑time job. If injured in an accident, they may be unable to continue their studies or work. Optional non‑earner benefits, lost educational expenses and expenses of visitors could help support recovery and allow family to travel to provide care.
The delivery driver
This person works for a courier company and drives a company-owned vehicle. Because their income depends on their ability to drive, an injury from an accident could significantly affect their earnings. While coverage would be available through mandatory accident benefits under the company’s commercial auto policy, employers are not required to purchase optional benefits. Income replacement, indexation, and death and funeral benefits would be recommended in this case.
What to do if you have an auto insurance policy renewing before July 1, 2026
Your policy will renew automatically with your current coverage and limits unless you make changes before your renewal date. Connect with an Acera Insurance advisor to review your existing policy and ensure you have the coverage that you need.
FAQs
Yes, changes can be made anytime. It is recommended to review your policy and make updates as needed to reflect any changes in your personal circumstances, such as starting a new job, having children or taking on caregiving responsibilities. Keep in mind that only the coverage in place at the time of an accident will apply to your claim. Connect with your Acera Insurance advisor to review your options and update your policy as needed.
Yes, the changes to accident benefits coming into effect on July 1, 2026 will apply to all drivers and auto insurance policies in Ontario, including personal private passenger, commercial, motorcycle, snowmobile and all-terrain vehicle policies.
The changes will not affect any ongoing claims as only the coverage you had in effect at the time of your accident will apply.
Have questions about how these changes affect you?
Connect with an Acera Insurance advisor to review your coverage, understand your options and make informed decisions before the changes take effect.
Information and services provided by Acera Insurance, Acera Benefits and any other tradename and/or subsidiary or affiliate of Acera Insurance Services Ltd. (“Acera”), should not be considered legal, tax, or financial advice. While we strive to provide accurate and up-to-date information, we recommend consulting a qualified financial planner, lawyer, accountant, tax advisor or other professional for advice specific to your situation. Tax, employment, pension, disability and investment laws and regulations vary by jurisdiction and are subject to change. Acera is not responsible for any decisions made based on the information provided.
Get a quote.
Simply fill out a few details in our online form and one of our expert advisors will get your quote started.