If you drive in Ontario, your auto insurance policy is about to change in a big way. Starting July 1, 2026, the province is overhauling which accident benefits are included in your coverage and which ones you'll need to add yourself.
Most drivers haven't heard about this yet. That's a problem, because the default coverage after July 1 will have significant gaps compared to what you have today. If you don't take action before your next renewal, you could lose protections you didn't even realize you had.
Here's what's happening, what it means for you, and what to do about it.
What's actually changing
Ontario's Statutory Accident Benefits Schedule (SABS) currently bundles a set of benefits into every auto insurance policy. After July 1, 2026, the province is splitting those benefits into two categories: benefits that stay mandatory, and benefits that become optional.
The mandatory benefits that remain cover medical treatment, rehabilitation, and attendant care. If you're injured in an accident, these benefits still apply automatically:
- Non-catastrophic injuries: up to $65,000 combined for medical, rehabilitation, and attendant care
- Catastrophic injuries: up to $1,000,000 combined
That part stays the same. What changes is everything else.
Benefits moving from mandatory to optional
Several benefits that are currently included in every Ontario auto policy will become optional add-ons. Unless you specifically choose to keep them, they won't be part of your coverage after your policy renews.
Here's the full breakdown:
| Benefit | Current Status | After July 1, 2026 | What It Covers |
|---|---|---|---|
| Medical/Rehab/Attendant Care | Mandatory | Still Mandatory | Treatment and care after an accident |
| Income Replacement | Mandatory | Optional | 70% of gross income, up to $400/week |
| Non-Earner Benefit | Mandatory | Optional | $185/week for those not employed at time of accident |
| Caregiver Benefit | Mandatory | Optional | Up to $250/week + $50 per additional dependent |
| Housekeeping/Home Maintenance | Mandatory | Optional | Up to $100/week |
| Death and Funeral Benefits | Mandatory | Optional | $25,000 death benefit + $6,000 funeral |
| Visitor Expenses | Mandatory | Optional | Travel costs for family visiting you during recovery |
Read that list again. Income replacement, caregiver support, housekeeping help, and even death benefits are all moving to optional. If you don't actively add them back to your policy, they simply won't be there when you need them.
The hidden risk: small savings, huge gaps
Here's the part that concerns us most as brokers. The premium savings from dropping these benefits are small -- we're talking a few dollars per month in most cases. But the financial exposure if you're in a serious accident without them is enormous.
Consider a scenario: you're in a collision that puts you out of work for six months. Without income replacement coverage, you get nothing. No $400/week payment. No bridge to help cover your mortgage, groceries, or car payment while you recover. Your employer benefits might help with medical bills, but they won't replace your paycheque.
Or imagine you're a parent who provides full-time childcare. Without the caregiver benefit, your family would need to pay for childcare out of pocket while you recover -- potentially thousands of dollars with no insurance support.
The math doesn't add up. Saving $5-10 per month on premiums to risk tens of thousands of dollars in lost income or out-of-pocket expenses is not a trade most families should make.
The first-payer rule: a quiet but important shift
There's another change happening alongside the optional benefits shift that most people haven't noticed. Under the new rules, auto insurance becomes the first payer for medical and rehabilitation expenses after an accident.
What does "first payer" mean? If you're injured in a car accident and you have both auto insurance and employer health benefits, your auto insurance now pays first. Previously, there was more flexibility in how claims were coordinated between insurers. Now, your auto policy is expected to cover medical and rehab costs before your employer plan kicks in.
This matters because it affects how quickly your auto insurance benefit limits get used up. If you have $65,000 in non-catastrophic coverage and your auto policy is paying first for every treatment, that limit can get reached faster than you might expect.
The OPCF 47R: your new customization tool
To manage these new optional benefits, insurers will use a new endorsement form called the OPCF 47R. This is the standardized form you (or your broker) will use to add optional benefits back onto your policy.
Think of the OPCF 47R as a menu. When your policy comes up for renewal after July 1, you'll use this form to select which optional benefits you want to keep. Each benefit you add will have a specific cost attached to it, and your broker can walk you through which ones make sense for your situation.
You don't need to memorize the form number, but you should know it exists. When your renewal comes up, ask your broker about the OPCF 47R and which optional benefits they recommend for you.
Who needs to pay the most attention
While every Ontario driver should review their policy, some groups face higher risk if they let these benefits drop:
Self-employed and gig workers. You don't have employer disability coverage to fall back on. If you're injured and can't work, income replacement through your auto policy may be your only safety net. Dropping it could mean zero income during recovery.
Families with dependants. If a parent who handles childcare, eldercare, or household duties is injured, the caregiver and housekeeping benefits help cover those costs. Without them, your family absorbs the full expense.
New Canadians and recent immigrants. If you're still building your career in Canada and don't yet have comprehensive employer benefits, your auto insurance accident benefits may be your primary source of support after an accident.
Cyclists and pedestrians. You might not realize it, but Ontario auto insurance covers you even if you're hit by a car while walking or cycling. These optional benefits apply to you too, through the driver's policy or through MVACF (Motor Vehicle Accident Claims Fund) if the driver is uninsured.
Anyone without long-term disability insurance. If your employer doesn't offer disability coverage, or you've opted out, the income replacement benefit in your auto policy is a critical backstop.
What to do before your next renewal
The changes take effect on a rolling basis. Your policy won't change overnight on July 1. Instead, the new rules apply at your next renewal date after July 1, 2026. If your policy renews in August, that's when you'll need to make decisions. If it renews in December, you have a bit more time.
Here's what we recommend:
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Find your renewal date. Check your current policy documents or call your broker. Know exactly when the new rules will apply to you.
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Review your current benefits. Understand what you have today so you know what you'd be losing under the new defaults.
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Talk to your broker before renewal. Don't wait for the renewal notice to show up. Have a conversation about which optional benefits make sense for your situation, your family, and your budget.
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Look at your other coverage. Do you have employer disability insurance? Life insurance with a death benefit? Group health coverage? Understanding your full picture helps you decide which auto insurance benefits are essential and which might be redundant.
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Don't drop benefits just to save a few dollars. The savings are small. The risk is not. Make the decision based on your actual financial exposure, not just the premium line item.
Let's review your policy together
These changes are significant, but they don't have to be stressful. The whole point of working with an independent broker is having someone who can look at your full situation, explain your options in plain language, and make sure you're not accidentally leaving yourself exposed.
We're reviewing our clients' policies now, ahead of their renewal dates, to make sure nobody gets caught off guard. If you'd like to do the same, reach out.
Text or call Bassem at 647-677-1420, or message us on WhatsApp to book a free 15-minute policy review. We'll go through your current coverage, explain what's changing, and help you decide which optional benefits to keep.
Don't wait until your renewal notice arrives. By then, you'll be making decisions under a deadline. Let's get ahead of it.