The Ontario government has just made significant changes to automobile insurance policies in Ontario. As of July 1, 2026 the vast majority of benefits which were previously included as standard in every automobile insurance policy will be optional and only available to those who pay an additional premium in order to have these optional benefits.
The only standard benefits moving forward are medical, rehabilitation and attendant care benefits which help cover the cost of essential recovery costs after an accident.
These benefits are monetarily and time limited. Additional/increased coverage is available – for an added premium.
The following benefits are now “optional” benefits –
- Income replacement: Helps replace income that you or another covered person may lose because of an auto accident.
- Non-earner: If you or another covered person is a student or unemployed and an auto accident keeps you or them from leading a normal life, this benefit can provide financial support during recovery.
- Caregiver benefits: Helps cover caregiving expenses if you or another covered person is injured in an auto accident and can no longer provide care for a household member who needs care, such as a child or aged parent.
- Lost educational expenses: If an auto accident prevents you or another covered person from attending school or an educational program, this benefit can help cover the costs you have incurred, such as tuition and books.
- Expenses of visitors: Helps cover reasonable and necessary expenses of visitors, such as a sibling or parents, if you or another covered person is injured in an auto accident.
- Housekeeping and home maintenance: Helps cover costs if you, or another covered person, are unable to perform the housekeeping and home maintenance tasks that you, or that person, had normally done before being injured in an auto accident.
- Damage to personal items: Helps cover the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids) damaged in an auto accident.
- Death benefits: Compensates some family members if you or another covered person dies due to an auto accident.
- Funeral benefits: Helps cover some funeral costs if you or another covered person dies due to an auto accident.
These now “optional” benefits as well as additional/increased medical, rehabilitation and attendant care benefits provide essential coverage to people injured in at-fault accidents which will no longer be available unless they paid the extra premium for such coverage. Even in not at-fault accidents, these benefits provide essential coverage to injured people while waiting for their claims against the at-fault driver’s insurance company to work through the legal system. This can often take years, and these benefits often keep people afloat during that period of time.
I would encourage everyone who is able to pay the extra premium for as many of the optional benefits that may apply to you if you are injured in an accident as the cost will be well worth the benefit if you are in an accident.
I would encourage everyone to speak with an insurance agent or broker or a lawyer prior to making any decisions, so you are fully aware of the potential consequences if you chose to forgo some or all of the now optional benefits.
