Your policy can renew with your current benefits and limits unless changes are made in writing. That means you may keep the same coverage, but that does not necessarily mean it is still the best fit for your situation.
Starting July 1, 2026, many accident benefits will become optional. Make sure your coverage still protects what matters most.
Starting July 1, 2026, Ontario is changing how auto insurance accident benefits work.
Many benefits that were previously included automatically will become optional. Core medical, rehabilitation, and attendant care benefits will remain standard, but many other protections will need to be reviewed and selected based on your needs.
This gives drivers more choice - but it also creates more responsibility.
The biggest risk is not reviewing your coverage and assuming your current policy still protects you the same way.
As of July 1, 2026, Ontario auto insurance will continue to include standard medical, rehabilitation, and attendant care benefits. However, many other accident benefits will become optional and may need to be added, adjusted, or reviewed depending on your personal situation.
Benefits that become optional include things like:
Income replacement
Non-earner benefits
Caregiver benefits
Lost educational expenses
Visitor expenses
Housekeeping and home maintenance
Damage to personal items
Death and funeral benefits
A very important detail is that your policy can renew with the same benefits and limits you already have, unless changes are made in writing. That means automatic renewal does not necessarily mean your protection has been updated to reflect your current needs or the new options now available.
In other words:
your policy may continue,
your premium may continue,
but your coverage may no longer be the best fit for your life.
That is why a review matters.
Some people may choose fewer benefits to lower premium costs.
That may make sense in some situations - but not in all.
If you are injured in an accident, optional benefits can play an important role in replacing income, supporting caregiving responsibilities, helping with home maintenance, or covering other losses. Once those benefits are declined, those supports may not be available after a claim.
You cannot wait until after an accident to decide you want the coverage.
Many people assume workplace or private benefit plans will respond if they remove coverage from their auto policy.
That is not always true.
Some plans may limit or exclude injuries arising from a motor vehicle accident, and coverage can change if you change jobs, lose benefits, retire, or move into a different stage of life. Your notes also highlight that some clients may think they are protected through work, only to discover later that their plan does not respond the way they expected.
That is why coverage decisions should be based on your full picture, not assumptions
Another major change is that optional accident benefits apply only to certain people connected to the policy, including:
the named insured
their spouse
dependants
listed drivers on the policy
This means coverage is more limited than many people expect.
For example, individuals such as pedestrians, cyclists, passengers, or other occupants who do not have their own policy to claim under may only have access to the standard medical, rehabilitation, and attendant care benefits — not the broader optional benefits.
That makes your own policy choices more important than ever.
With fewer benefits automatically included in accident benefits, liability coverage may play a larger role in serious claims.
Some costs that were previously covered under accident benefits may now be recovered through liability claims instead. This can increase the importance of having appropriate liability limits in place.
This is another reason why a full review is worthwhile — not just a quick yes-or-no decision on one benefit.
These changes deserve extra attention if you:
are self-employed
rely on your income to cover household expenses
do not have strong disability or health coverage elsewhere
care for children, elderly parents, or dependants
are retired or approaching retirement
have recently changed jobs or expect your benefits to change
have drivers in your household with different needs and exposures
No two households are the same. That is exactly why these reforms matter.
| Topic | Before July 1, 2026 | After July 1, 2026 |
|---|---|---|
| Accident benefits | More benefits included as standard | Many benefits become optional |
| Standard coverage | Included automatically | Medical, rehab, and attendant care remain standard |
| Consumer role | Less active decision-making | More active review and selection required |
| Coverage for others | Broader access in some situations | Optional benefits restricted to named insured, spouse, dependants, and listed drivers |
| Medical/rehab payment order | Other plans may be accessed first | Auto insurer becomes first payor for many medical and rehab expenses, excluding medication expenses |
You do not necessarily need to make changes today.
But you should prepare for your next renewal by reviewing:
your current accident benefits
your work or private benefits
your household responsibilities
your income protection needs
your liability limits
The goal is not to buy everything.
The goal is to make an informed decision.
These changes are not one-size-fits-all.
The right answer depends on your job, your family situation, your existing benefits, and what risks you want protected.
If you want help understanding your options before your next renewal, we're happy to review your current coverage and talk through what makes sense for your situation.
Book a coverage review today
Call us at 905-479-1100
Email us at contact@lddermody.com
Your policy can renew with your current benefits and limits unless changes are made in writing. That means you may keep the same coverage, but that does not necessarily mean it is still the best fit for your situation.
No. Standard medical, rehabilitation, and attendant care benefits will remain included in Ontario auto policies. Many other accident benefits will become optional.
Possibly, but it is important to understand what you are giving up. Removing optional benefits may reduce your premium, but it can also reduce income support, caregiving support, and other protections after an accident.
Not always. Some workplace or private plans may not respond fully to injuries from a motor vehicle accident, and benefits can change if your employment changes.
Generally, optional benefits apply only to the named insured, spouse, dependants, and listed drivers on the policy.
Your notes indicate that people without their own policy to claim under may only have access to the standard medical, rehabilitation, and attendant care benefits after the changes, rather than the broader optional benefits.
No. Coverage decisions need to be made before a claim occurs. Your notes specifically highlight that optional benefits cannot be added retroactively after a collision.
In many cases, yes. With fewer automatic accident benefits available, liability coverage may become more important in serious claims.
No. Your notes indicate these accident benefit changes also affect commercial auto policies, which makes them relevant for business owners as well.
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