Ontario’s New ‘Choose Your Coverage’ Auto Insurance: What You Need to Know!

In a sweeping reform to Ontario’s auto insurance system, the government has announced that, as of July 1, 2026, most accident benefits that were once mandatory under the Statutory Accident Benefits Schedule (SABS) will now be offered as optional coverage. This means that individuals will need to proactively choose and pay for additional coverage, apart from medical, rehabilitation, and attendant care benefits, which remain the only required protections.

These changes are intended to give drivers more control over their policies and potentially reduce premiums—but they also bring significant new responsibilities for policyholders, as many standard benefits will no longer be included by default.

The Previous SABS Coverage: A Comprehensive Safety Net

Ontario’s existing no-fault insurance system has provided a standard set of accident benefits for those injured in vehicle collisions, regardless of fault. These include a broad range of support benefits aimed at minimizing the financial burden following an accident, such as:

  • Income Replacement Benefits for those unable to work
  • Caregiver and Non-Earner Benefits for individuals who are not earning an income, including students and caretakers
  • Housekeeping and Home Maintenance Benefits
  • Visitor Expenses for family members traveling to the hospital
  • Death and Funeral Benefits for those who lose a loved one in an accident
  • Additional Expenses for educational, clothing, and personal item replacements

This automatic coverage offered a safety net for Ontarians, helping many people recover without significant out-of-pocket expenses. However, starting in July 2026, a new “à la carte” insurance model will remove these benefits from the standard policy and make them optional.

What Does This Mean for Consumers?

These changes bring both opportunities and risks. While the new system promises more control and could potentially lower premiums, it also means that many Ontarians may find themselves without essential coverage if they opt for a bare-minimum policy.

Many individuals may be tempted by the lower initial cost of a minimal policy, especially as affordability concerns grow. But consumers should consider how they would cover costs if they’re unable to work, need ongoing care, or incur additional expenses following an accident. For example, income replacement will only be available to those who choose it as an add-on benefit; without it, a person unable to work after a collision could face significant financial strain.

Risks for Pedestrians, Cyclists, and Others

Another critical aspect of these changes involves those who do not own vehicles. Under the current SABS, pedestrians, cyclists, and passengers are protected by the at-fault driver’s insurance if they’re injured in a collision. However, with the new optional coverage, these individuals could find themselves facing limitations in their ability to claim benefits. This could mean that a pedestrian injured in an accident may not receive income replacement or other key supports if the at-fault driver chose not to include those benefits in their policy.

Relying on Insurance Brokers for Guidance

Given the complexity of these new choices, it will be crucial for consumers to work closely with their insurance brokers. However, with the rise of automated online renewals, many may simply receive auto-renewal notices without an opportunity to fully discuss the changes with a broker. This could lead to situations where consumers unknowingly renew a basic policy with minimal coverage, assuming it provides the same protection as their previous plan.

To avoid gaps in coverage, it will be important for consumers to review their policies carefully and, if needed, reach out to their insurers to clarify the terms and available options. Consulting with an experienced insurance professional or personal injury lawyer can also help individuals make informed choices based on their specific needs.

Conclusion: Navigating the New Insurance Landscape

Ontario’s new insurance framework will put a significant onus on consumers to carefully consider what protections they want to purchase. While this may make it easier to control costs in the short term, it also introduces a level of risk. For those who rely on these benefits as a financial safeguard, opting out could lead to long-term hardship in the event of an accident.

As this new approach to insurance takes effect, making informed choices is key. Whether choosing a comprehensive policy or a minimal one, ensuring that your coverage aligns with your needs—and those of your family—is essential. With the right guidance and attention to detail, Ontario families can navigate these changes to ensure they’re prepared for any unforeseen events on the road.