Starting July 1, 2026, Ontario auto insurance will allow drivers the choice to opt-out of some coverages that were previously mandatory to all.

The following benefits will remain mandatory:

• Medical & rehabilitation, attendant care benefits, Third-party liability & uninsured automobile coverage

All other accident benefit coverages will become optional, including income replacement, non-earner, caregiver, lost educational expenses, expenses of visitors, housekeeping and home maintenance, damage to personal items, and death and funeral benefits. To drop optional coverages, insureds need to opt out.

Changes apply to all customers, including new and existing customers, as of July 1, 2026, regardless of renewal date.

Yes. The changes to accident benefits optionality will impact all drivers and auto insurance policies in Ontario, including personal private passenger, commercial, motorcycle, snowmobile, and all-terrain vehicle policies.

If you choose to opt out of benefits that have become optional, it may lower your premium. Premium reduction estimates are about $43–90 per year.

Mandatory (stays in all policies):

• Medical & rehabilitation
• Attendant care benefits
• Third-party liability
• Uninsured auto coverage

Optional (you may choose to opt out):

• Income replacement — helps replace income lost due to an auto accident
• Non-earner benefit — for students or those unemployed who can no longer lead a normal life
• Caregiver benefits — covers caregiving expenses if you can no longer care for a household member
• Lost educational expenses — covers costs lost if an accident keeps you from attending school
• Expenses of visitors — covers reasonable expenses of visitors if you're injured
• Housekeeping and home maintenance — covers costs if you're unable to perform household tasks
• Damage to personal items — covers clothing, prescription eyewear, hearing aids, etc.
• Death and funeral benefits — compensates family members and covers funeral costs

Starting July 1, 2026, 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

As of July 1, 2026, optional accident benefits coverage will only apply to the named insured, their spouse, dependants, and listed drivers. Passengers injured in an auto accident will not be covered for optional benefits unless they fall into one of these groups.

However, standard accident benefits will still apply to all passengers.

Standard accident benefits will still apply to uninsured pedestrians and cyclists. However, optional accident benefits will only apply to the named insured, their spouse, dependants, and listed drivers. Pedestrians and cyclists will not be covered for optional benefits unless they fall into one of these groups under a policy that includes optional benefits.

Starting July 1, 2026, Ontario is making changes to ensure that auto insurance pays first for medical or rehabilitation benefits (except for medication costs) for any injury sustained in an auto accident. This means your auto insurance provider will cover these costs before your workplace or private health plan, helping you preserve those benefits for other life events.

Some Ontarians pay and receive certain benefits through their employer or private insurance plans. These reforms eliminate a one-size-fits-all approach — consumers will no longer have to pay for benefits they may already have elsewhere or simply don't want to buy.

Starting July 1, 2026, you can opt out of certain coverages to fit your personal situation. While removing optional coverages may reduce premiums slightly, life changes quickly and if you remove coverage and then your needs change, you may not have the protection you need after an accident. We recommend keeping all 10 coverages.

• Review your current coverage — know what benefits you already have through your auto policy
• Review your workplace or private benefits plan — you may already have coverage through your employer or health insurance
• Think about your needs — consider which coverage is right for you and whether opting out is practical
• Speak to your broker — they can help explain your options in relation to your auto insurance coverage

Yes. You may need to change your optional accident benefits if your situation changes — such as starting a new job, having children, or taking on caregiving responsibilities. You can change your optional benefits at any time, but only the coverage in place at the time of an auto accident will apply to your claim.

Contact your broker to review your options and make sure your policy reflects your current needs.

Yes. You can choose to remove or update your auto insurance coverage by agreeing with your insurer in writing to decline certain benefits or make changes to them. Before deciding, review your current policy, think about your needs, and check whether your personal or work benefits already provide similar coverage. Speak to your broker to explore your options.

Speak to your broker to add optional accident benefits to your auto insurance policy. They can walk you through what's available and what makes sense for your situation.

To learn more about optional benefits, speak with your broker or a member of our team. You can also download our info sheet for a full overview of what's changing.

Before speaking with your broker, you should:

• Review your current auto insurance policy to understand what coverage you currently have
• Think about your needs and lifestyle — who depends on you, whether you're employed, and what other coverage you carry
• Thoroughly review your personal or work benefits to see if they already provide similar coverage

You can also download our self-assessment checklist to help you get started.

Yes. If you're a renewing customer, all accident benefits except medical, rehabilitation, and attendant care will become optional. Your policy will renew automatically with your current coverage and limits, unless you agree with your insurer in writing to decline certain benefits or make changes.

Importantly, who is covered for newly optional accident benefits under your policy will change on July 1, 2026, regardless of your renewal effective date. Before making changes, check if your personal or work benefits already provide similar coverage.

Customers purchasing or renewing a policy on or after July 1, 2026 can choose which optional accident benefits they'd like to purchase. Ask your broker which benefits are included in your quote, and consider adding optional benefits based on your needs.

Yes. If you are shopping for a new policy on or after July 1, 2026, you may choose which optional accident benefits you'd like to purchase. Ask your broker which benefits are included in your quote and consider which ones fit your needs.

You may be covered for certain accident benefits when renting a car. Review your auto insurance policy and the rental contract to understand what you're covered for, or speak with your broker.

There is no impact to ongoing claims. The auto insurance coverage you had at the time of the accident applies to your claim, regardless of when the July 1, 2026 changes take effect.