On July 1, 2026, Ontario changed how statutory accident benefits work. Medical, rehabilitation and attendant care benefits remain mandatory in every car insurance policy. The other accident benefits, such as income replacement and caregiver benefits, are now optional for the insured to buy. Insurers must still offer them, so you decide what to keep.
Key takeaways
- Medical, rehabilitation and attendant care benefits are still mandatory in every Ontario auto policy.
- Income replacement, caregiver, housekeeping and home maintenance, and death and funeral benefits became optional.
- Insurers must still offer the optional benefits, so keeping them remains possible.
- Optional choices apply to the named insured, spouse, dependants and listed drivers. Passengers keep the standard benefits.
- Review your renewal documents and talk to your broker before dropping anything.
Reviewed October 2026. This article is general information, not advice, and rules change, so always confirm details with your broker or the regulator.
What are accident benefits?
Accident benefits are a part of every Ontario car insurance policy. They pay for certain costs if you are hurt in a car accident, no matter who caused it. This is often called "no-fault" coverage, because you claim from your own insurer first rather than waiting to prove who was to blame.
Depending on the injury and the coverage on the policy, benefits can help with treatment, rehabilitation, care at home, lost income, and other costs. They are separate from liability coverage, which protects you when you hurt someone else or damage their property. If you want a broader tour of every part of a policy, read our guide to Ontario car insurance coverages explained.
What changed on July 1, 2026
Before this date, a full set of accident benefits came with every policy. Since July 1, 2026, the rules split these benefits into two groups.
Still mandatory
- Medical benefits
- Rehabilitation benefits
- Attendant care benefits
Every Ontario policy must continue to include these. You cannot remove them.
Now optional
The other accident benefits became optional for the insured to buy. They include:
- Income replacement benefits
- Caregiver benefits
- Housekeeping and home maintenance benefits
- Death and funeral benefits, and similar benefits
Insurers must still offer these. The change gives you a choice, not an obligation to drop anything.
Who the optional choices apply to
The optional benefits apply to the named insured, their spouse, their dependants and the listed drivers on the policy. In other words, the people closest to the car and the policy.
Passengers are treated differently. The standard benefits still apply to passengers, so your decision about optional benefits does not strip their basic protection.
| Group | Mandatory benefits | Optional benefits |
|---|---|---|
| Named insured | Medical, rehabilitation, attendant care | Your choice |
| Spouse and dependants | Medical, rehabilitation, attendant care | Your choice |
| Listed drivers | Medical, rehabilitation, attendant care | Your choice |
| Passengers | Standard benefits still apply | Not affected by your choice |
Why this matters to your wallet and your safety
Choosing fewer optional benefits may change your premium. How much depends on the insurer, your driving profile and the rest of your coverage, so we cannot give a number here. Ask for quotes both ways.
The other side of the choice is protection. Think about what would happen to your household if you were injured and could not work for a while. Income replacement is meant to help with that gap. Caregiver and housekeeping benefits can matter if you look after children, an older relative, or a home. If you already have disability insurance, an employer plan or savings that would cover these needs, the optional benefits may overlap with what you have. If you do not, they may be worth keeping.
None of this is a recommendation. It is a way to frame the question: what would I need if I were hurt, and who already covers it?
A practical way to test your answer is to write down your monthly fixed costs, such as rent or mortgage, groceries, loan payments and child care. Then list the sources that would keep paying them if you could not work: savings, a partner's income, an employer plan. If the list leaves a gap, that gap is the part the optional benefits are designed to address. If the list covers everything with room to spare, you may feel comfortable choosing less. Either way, you are making the decision with numbers in front of you instead of guessing.
Questions to think through before you decide
- If I could not work for several weeks or months, how would my household pay its bills?
- Do I have disability insurance or an employer benefit plan that overlaps with income replacement?
- Do I care for children, a parent or a partner who relies on me for daily tasks?
- Do I want the same protection for my spouse and dependants?
- Is the premium saving worth the protection I would give up?
Write your answers down and bring them to your broker. They make the conversation faster and the advice more specific to you. Also bring your current policy documents or last renewal, because the broker can then point to the exact line items rather than speaking in general terms.
Before you act: what to ask your broker
- Which optional accident benefits are on my current policy, and what is the limit for each?
- What is the premium difference with and without each optional benefit?
- How do these choices apply to my spouse, dependants and any listed drivers?
- Can I add optional benefits back later, and how?
- How do my other coverages, such as liability and collision, fit together? Our article on how much liability coverage you need in Ontario can help with that part.
- Is there anything on my renewal that changed because of the July 2026 rules?
A broker can explain the wording on your actual policy. In Ontario, brokers are licensed by the Registered Insurance Brokers of Ontario (RIBO). You can start a comparison on our auto insurance page.
What did not change
It helps to know what stayed the same, so that you do not worry about the wrong thing.
- Third-party liability is still mandatory. The legal minimum is $200,000, though many people choose $1 million or $2 million.
- Uninsured automobile coverage is still mandatory.
- Collision, comprehensive and endorsements are still optional, as they were before.
Accident benefits are only one of several parts of your policy. Changing them does not change how liability or collision coverage works.
A simple example
Imagine a 38-year-old driver in Toronto who works full time and has two children. She drives a 2021 compact SUV to work every day. If she were hurt in a collision and could not work for a while, income replacement and caregiver benefits might help her household through that period. If instead her employer already provides generous disability coverage and her partner can handle child care, she might decide the optional benefits overlap with what she has. Two similar drivers can reasonably make different choices, which is why a conversation with a broker matters more than a rule of thumb. Compare the numbers, then decide.
Common mistakes to avoid
- Assuming the choice was made for you. Insurers must offer the benefits, but you should check what your renewal actually includes.
- Choosing only on price. The cheapest option is not the best if an injury would leave you with no income.
- Forgetting the household. Spouses and dependants fall under your choices, so decide with them in mind.
- Not asking questions. Policy wording differs between insurers. A short call can prevent a long surprise later.
Where to read the official rules
The Financial Services Regulatory Authority of Ontario (FSRA) is the regulator for auto insurance in Ontario. It publishes a page on the July 1, 2026 changes to statutory accident benefits, and that page should be your source of truth. The Insurance Bureau of Canada also publishes consumer information on car insurance. If you ever see a conflict between an article, including this one, and the regulator, follow the regulator.
Bottom line
The July 2026 change gives Ontario drivers more control over their accident benefits. Medical, rehabilitation and attendant care stay mandatory. The rest is your choice, with insurers required to offer it. Take a little time to compare quotes, think about your household, and ask your broker to walk you through the wording. When you are ready, you can request an auto quote and ask for the optional benefits to be priced separately.
