Ontario’s July 2026 auto insurance changes: what you now have to decide

What stayed mandatory

According to the Financial Services Regulatory Authority of Ontario (FSRA), medical, rehabilitation and attendant care benefits remain mandatory on every auto policy. All other accident benefits became optional.

What became optional

Benefits that are now optional include:

• Income replacement
• Non-earner benefits
• Caregiver benefits
• Housekeeping and home maintenance
• Death and funeral benefits
• Lost educational expenses
• Visitor expenses
• Damage to personal items

Higher limits for medical, rehabilitation and attendant care, dependant care and indexation remain available as optional add-ons.

Who is covered by optional benefits has changed too

Reporting on the change notes that optional benefits apply to the named insured, their spouse and dependants, and people listed as drivers on the policy. Some people who might previously have claimed under another driver’s policy, such as certain passengers, pedestrians and cyclists, may no longer be eligible for those optional benefits.

What happens at renewal

• Insurers must notify policyholders before renewal about the changes
• Existing policies generally renew with the same optional benefits and limits unless the insurer tells you otherwise in writing
• New policies starting on or after July 1, 2026 require you to choose which optional benefits to add

Questions to ask yourself before you decide

• If I couldn’t work after a collision, what would replace my income? Do I have disability coverage through work or a personal policy?
• Do I care for children or a family member at home?
• Who in my household doesn’t drive, and how would they be protected?
• How much would removing a benefit actually save, compared with the risk I’d be taking on?

Sources

• FSRA: Changes to statutory accident benefits coverage in Ontario, July 1, 2026
• CP24: New Ontario rules for auto insurance (June 30, 2026)

This article is general information, not advice for your specific situation. Policy wording and insurer rules determine coverage.