Ontario Car Insurance is Changing
Car insurance in Ontario is changing July 1st, 2026. The Ontario government is launching a new à‑la‑carte auto insurance model being sold as “choice,” but the real-world math shows that those optional accident benefits beyond income replacement collectively cost roughly $100 in premium. As at July 1st your Policy will renew for one year with the same accident benefits you had before but we strongly encourage you to talk with your insurance broker about what coverage is appropriate for you.
There is an immediate critical change to think through in the meantime. Starting July 1st what changes for everyone’s car insurance in Ontario is who is covered for accident benefits –
Under the amended regulation, optional accident benefits coverages will only apply to:
The named insured on the policy
The spouse of the named insured (watch this because common-law in the eyes of the insurance act is 3 years under the same roof if no kids together!)
Dependents of the named insured and spouse
Persons specified in the policy as drivers of the insured automobile
What This Means for “strangers to the policy” i.e. they are not dependents/listed drivers…like any adult living with you but not listed as a driver…or any person in your car that doesn’t have their own car insurance:
They will only receive the mandatory medical, rehabilitation, and attendant care benefits. They will have no access to income replacement, death benefits, caregiver support, or other optional coverages unless they have their own auto insurance policy with optional benefits....even if they are a pedestrian or cyclist. Consider the implications if you are carpooling to a children’s sports event or driving a work colleague if they don’t have their own car insurance.
You need to talk to your insurance broker about scenarios that could be in play for you.
Prior to July 1st, the “strangers to the policy’ enjoyed whatever accident benefits you had chosen to buy on your policy and on July 1st they don’t. You can’t buy a Policy endorsement to cover them beyond mandatory accident benefits.
And if those “Strangers to the Policy” are your employees they have just lost income replacement accident benefits.
For those with car insurance renewals after June 30th:
Starting July 1, 2026, Ontario auto insurance is shifting to an "à la carte" model where most Statutory Accident Benefits (SABS)—such as income replacement, caregiver, and housekeeping benefits—become optional rather than mandatory. Only (basic/minimal) medical, rehabilitation, and attendant care benefits remain mandatory, aiming to lower premiums and offer more customization.
Ontario is restructuring Statutory Accident Benefits (SABS) so that only three benefits remain mandatory with low limits:
Medical benefits
Rehabilitation benefits
Attendant care benefits
Everything else becomes optional, including:
Income Replacement Benefit – 3 different levels
Caregiver Benefit
Housekeeping & Home Maintenance
Dependent Care
Indexation (inflation protection)
Higher medical/rehab limits
Higher attendant care limits
This is a major shift because these optional benefits are the ones that protect your income and your household if you’re injured and can’t work.
More details can be found here and our self assessment tool can be found here
HUNTERS International Insurance is at your service to talk through what this means to you and/or your business.
Best –
Brooke Hunter, President & CEO
askus@huntersrisk.com