Ontario Auto Insurance Reform: What Clients Need to Know

The following information is only for Ontario drivers.

Starting July 1, 2026, Ontario is making changes to auto insurance with the goal of making it more flexible. Some accident benefits that were previously included in every auto insurance policy will become optional, giving you more choice to select coverage that fits your needs.

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 siblings 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 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.

How is Caregiver, Housekeeping and Home Maintenance coverage changing?

Before July 1, these benefits were automatically included only for catastrophic injuries. Customers could pay extra to extend them to non catastrophic injuries.

As of July 1, these benefits are optional and apply based on an impairment, which is a broader definition than catastrophic injury.

At renewal, your policy keeps what you already had. If you did not previously purchase the non-catastrophic option, your coverage will renew with catastrophic injuries only, unless you choose to make a change.

Who is covered?

The mandatory medical, rehabilitation and attendant care benefits will continue to apply as before.

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 certain accident benefits.

Priority of Payment Change

As of July 1, 2026, auto insurers will become the first payor for medical and rehabilitation expenses (excluding medication) for injuries from an auto accident. Prior to this auto reform, these expenses may have been paid under a supplementary health insurance plan.

What This Means For You

For all customers:

If your organization offers workplace or private health insurance programs, you may wish to review how those plans respond to automobile accident-related medical or disability situations, as the shift to an auto-first payor model may affect how benefits coordinate. We will not request or collect any employee health or benefits information; please consult your benefits provider for details. 

We recommend that you review your limits carefully. When accident benefits do not apply, or only provide limited coverage, more claims may shift to liability coverage. As a result, injured parties may be more likely to pursue legal action to recover their losses. To help protect you from this increased legal exposure, we strongly recommend increasing your liability limit. 

If you’re an existing customer:

Your policy will renew automatically with your current coverage and limits, unless you agree with your insurer in writing to decline the benefits or to make changes to them.

Either way, who is covered under your policy for newly optional benefits will change on July 1, 2026, regardless of renewal effective date, as described in the list above. You can review and update your coverage based on your needs. Before making changes, check if your personal or work benefits already provide similar coverage.

If you’re a new customer:

Clients who are purchasing or renewing a policy on or after July 1, 2026, can choose which optional accident benefits they would like to purchase. Ask one of our specialists which benefits are included in your quote. You may want to add optional benefits to your policy based on your needs.

If you’re a commercial customer or employee:

If you choose optional accident benefits and the named insured is a corporation, there is no spouse/dependents concept in practice, so optional benefits commonly hinge on who are “specified as drivers” on the commercial policy. Others (for example, an uninsured passenger or pedestrian) will not have access to your optional benefits.   

What steps should I take?

1. Review your current coverage. Know what benefits you already have today through your auto insurance policy. 
2. Review your workplace or private benefits plan. You may already have some coverage through your workplace, private benefits plan or life and health insurance providers.  
3. Think about your needs. Consider which coverage is right for you  
4. Speak to your NFP broker. They can help explain your options.