Starting July 1, 2026, Ontario will introduce significant changes to auto insurance. Many accident benefits that are currently included in every auto insurance policy will become optional, giving you more choice to select coverage that fits your needs. These decisions can affect your coverage and financial protection after an accident.
What are statutory accident benefits?
Statutory Accident Benefits (SABs) can provide financial support if you are injured in a car accident. These benefits can be available regardless of who caused the accident and can cover things like medical treatment, rehabilitation and income if you can’t work because of your injuries.
What’s staying the same?
Standard medical, rehabilitation and attendant care benefits will continue to be included in all auto insurance policies. These benefits help cover essential recovery support after an accident.
You still have the option to purchase additional or increased benefits and coverages, such as supplementary medical, rehabilitation and attendant care, dependant care and indexation benefits.
What’s becoming optional?
The following auto insurance accident benefits will become optional:
- Income replacement: Helps replace income 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 from leading a normal life, this benefit can provide financial support while you recover.
- 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, such as a child or aging parent, who needs it
- Lost educational expenses: If an auto accident keeps you or another covered person from attending school or an education program, this benefit can help cover the costs you have lost
- 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 is unable to perform the housekeeping and home maintenance tasks normally done before an auto accident
- Damage to personal items: Helps cover the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids, etc.) damaged in an auto accident
- Death benefits: Compensates some family members if you or another covered person die due to an auto accident
- Funeral benefits: Helps cover some funeral costs if you or another covered person die due to an auto accident
Who is covered under Statutory Accident Benefits (SABS)?
Starting July 1, 2026, the newly optional benefits under your auto policy will only apply to:
- The named insured
- The spouse of the named insured
- Dependants of the named insured and of the named insured’s spouse
- Persons specified in the policy as drivers of the automobile
This means that some people, such as pedestrians, cyclists, and certain passengers who may have been covered in the past may no longer be eligible for accident benefits.
