Starting Wednesday, July 1, 2026, Ontario is overhauling what's automatically included in every auto insurance policy. Only medical, rehabilitation and attendant care benefits will remain mandatory, while everything else in your accident benefits package becomes optional. If you don't actively choose your coverage, you could find out what you're missing at the worst possible moment — after a crash.

🔍 Quick Self-Check: Could This Affect You?
▸Do you walk, cycle, or take transit regularly in a household with no auto policy?
▸Would your family struggle financially if you couldn't work for months after an accident?
▸Do you care for a child, aging parent, or dependent who relies on you daily?
▸Is your auto policy renewing on or after July 1, 2026?
If you answered yes to any of these, keep reading — your coverage may be changing without you noticing.

What's Actually Changing on July 1

Standard medical, rehabilitation and attendant care benefits will continue to be included in all auto insurance policies no matter what. But income replacement, non-earner benefits, caregiver benefits, funeral benefits, and several others will become optional add-ons rather than automatic coverage.

Medical / Rehab
Mandatory
Attendant Care
Mandatory
Income Replacement
Optional
Caregiver Benefit
Optional
Funeral Benefit
Optional
Benefit Status After July 1, 2026 What It Covers
Medical, rehab, attendant care Mandatory Core recovery support after a collision
Income replacement Optional Currently $400/week if injured and unable to return to work
Non-earner benefit Optional Support for students or unemployed people unable to lead a normal life
Caregiver benefit Optional Covers caregiving costs if you can no longer care for a dependant
Funeral benefit Optional Helps cover funeral costs if a covered person dies in an accident
Lost educational expenses Optional Covers costs lost if an accident keeps you from attending school
Expenses of visitors Optional Reasonable expenses for visiting family during hospitalization
Death benefits Optional Financial support to family after a fatal collision


Who Loses the Most Coverage

This isn't just a drivers' issue. About 40 per cent of accident victims do not have their own auto policy, and the reform narrows exactly who can claim optional benefits.

🚶
Pedestrians & Cyclists
No longer automatically eligible for optional benefits unless covered under their own or a household policy.
🏠
Non-Driving Households
If nobody in the home owns a car or policy, there's no access to optional benefits at all.
🚗
Borrowed Vehicle Drivers
Someone driving a friend's car who isn't named on the policy only gets the mandatory minimum.
👨‍👩‍👧
Passengers
Optional benefits will only apply to the named driver, their spouse, and dependents — not all passengers.
Official Position
The Ontario Ministry of Finance frames this as choice: "Our government is providing drivers with greater choice and convenience when purchasing automobile insurance so they can choose the right policy that fits their needs." Critics counter that the savings are small relative to the risk shifted onto uninsured people.

Does This Affect My Current Policy?

  • 1
    Already insured? Your policy will renew automatically with your current coverage and limits, unless you choose, in writing, to remove or change any benefits.
  • 2
    Renewing or buying new on/after July 1? You'll need to actively choose which optional accident benefits to purchase — nothing is bundled in by default.
  • 3
    Who's covered changes regardless of renewal date. Who is covered under your policy for newly optional benefits will change on July 1, 2026, even if your policy renews later.

    • Should You Keep the Optional Benefits?

    💰 The savings case
    The average customer could save $100–200 annually by opting for the most basic coverage, according to insurance broker Lance Miller.
    ⚠️ The risk case
    Opting out of funeral expenses might save $30–50 a year, but an actual funeral costs tens of thousands of dollars — a steep gap if disaster strikes.
    🧾 Check for overlap
    Review whether workplace benefits, disability insurance, or extended health coverage already protect you before dropping anything.
    🛒 Shop before you cut
    "Often the best way to reduce premiums isn't to cut coverage, it's to shop," says broker Daniel Ivans.
    Expert Caution
    Lance Miller notes the shift requires consumers to stop focusing purely on the cheapest premium and instead ask what coverage they actually need at the best price. Meanwhile, biking-injury lawyer David Shellnutt argues the ramifications for uninsured pedestrians and cyclists outweigh the modest savings to taxpayers.

    Pre-Renewal Checklist

    • ▸Confirm your renewal date — is it on or after July 1, 2026?
    • ▸Ask your broker exactly which optional benefits are included in your quote
    • ▸Check whether household members without their own policy would lose coverage
    • ▸Compare your existing workplace or extended health benefits for overlap
    • ▸Get quotes from at least two providers before reducing any coverage

    Bottom Line

    📅 Effective
    July 1, 2026
    (new & renewing policies)
    ✅ Stays Mandatory
    Medical, rehab,
    attendant care
    ⚠️ Becomes Optional
    Income replacement,
    caregiver, funeral & more
    👀 Most Affected
    Pedestrians, cyclists,
    non-driving households

    This reform shifts real decision-making weight onto drivers and their brokers. If your broker doesn't explain the new optional benefits or simply sells you the cheapest policy without walking you through what you could be missing, that's worth questioning before you sign.

    Disclaimer: This article summarizes publicly available information from FSRA, IBC, and Ontario insurance industry sources as of June 29, 2026. Coverage details, limits, and eligibility vary by insurer and individual policy. This is not legal or insurance advice — speak with your licensed broker or insurer before making changes to your policy. Sources: FSRA, IBC, CBC News, Thomson Rogers LLP.