As the new year begins and we welcome the snow, Ontario drivers may have some new options heading their way. Starting July 1, 2026, Ontario drivers will see some of the biggest changes to their statutory accident benefits in decades. Clients will have more customizations offered and can choose what suits their budget. But is this a good thing? What are the changes?
What Are Statutory Accident Benefits (SABS)?
Before we jump into what is changing, we need to understand what Accident Benefits are and what they cover.
Unlike Collision or Comprehensive coverage which you can opt-out of, Accident Benefits (ABs) are currently a mandatory part of your Ontario auto insurance policy. They offer coverage that helps you get back on your feet in the event of an accident. Some examples include:
Income Replacement: – If you cannot work as a result of your accidents, the insurance company will pay out $400 per week. You also have the option to increase those (Ex. $600, $800, $1000 per week).
Medical & Rehabilitation: – Covers medical care costs that aren’t included in your OHIP (Ontario Health Insurance Plan) plan such as physio, chiropractor and some special equipment.
Housekeep/ Caregiver: – Helps pay for someone to look after your children or house cleaning while you are recovering.
Attendant Care: – If you are no longer able to do basic self-care such as bathing, cleaning or getting dressed, this coverage will pay for a personal helper.
Death & Funeral: – Offers a lump sum payment to your family in the event of a death from an accident. This covers funeral expenses.
What’s Changing?
Now that we have a general idea of what SABS are, lets see what’s changing as of July 1 2026.
Mandatory – Medical & Rehabilitation and Attendant Care are still mandatory and clients will not be able to opt-out of these.
Optional – The remaining ABs are now optional such as Caregiver and Income Replacement.
Limitations – This is a big change. The SABs will now be limited to the Name Insured, their spouse, their dependents and their spouses dependents as well as any driver specifically listed on the policy. This is big because previously, if a pedestrian or cyclist was hit who didn’t have an insurance policy, your insurance could cover them. As of July 1 2026, those coverages are limited and this may result in more lawsuits.
“First Payer Change” – Insurance companies will now be a first payer in the event of a claim instead of clients exhausting their workplace benefits or private plans. Medications will still be paid out first by your employer / private plan.
Filip’s Opinion
Options are never a terrible thing, however when it comes to auto insurance, customers tend to put a lot of weight on the price. Since these are options that reduce rates when declined, many will accept it and be happy with their new rates. Unfortunately, if an event occurs where one of these Accident Benefits were needed, insureds could be losing a lot while premium savings were very little.
What now?
Keep an eye out for more updates with your auto insurance renewals and always be sure to speak to your broker regarding your options.
