Accident Benefits Reform

Starting July 1st, 2026, there are big changes that will affect all drivers, passengers and pedestrians that may become injured in an accident involving an automobile in Ontario.  Many of the current accident benefit coverages will be more customizable to each individual person to suit their needs.

Currently a number of accident benefits, such as income replacement, caregiver benefit and non-earner benefits are legally mandatory on every policy.  As of July 1st, 2026  many of these benefits will become optional.  The only accident coverages that will mandatory will be medical, rehabilitation and attendant care coverages.

If your policy renews on or after July 1, 2026, it will automatically renew with the same benefits and limits you currently you have.  Any change to the accident benefits coverages you currently have will have to be documented in writing.

If you purchase a new policy on or after July 1, 2026 only the minimum coverages for accident benefits will be applied to that policy.  It is the job of your insurance advisor to make recommendations for the different coverages that exist and that suit your individual needs to ensure you are properly covered.  

If you choose to opt out of certain coverages, mid-term after July 1st, 2026, your advisor should review all the accident benefits coverages available to ensure you have the coverages needed.

With the change to the accident benefits coverages, the priority of payments guideline will be changing as well.  Previously, the priority of payments went as followed; OHIP, your workplace benefits (if available) then your auto policy benefits would respond.  With the new auto reform, your auto policy will respond before your workplace benefits will kick in.  The idea of this is to reduce the strain on you workplace benefits so that they are not exhausted when you need them for non-auto related injuries.  

Although the thought of saving money on your auto policy may seem enticing, opting out of the coverages you need could cost you thousands in the long run if you were injured in a car accident.  

Imagine you were injured in a car accident and were not able to work due to that injury.  Are you confident your work benefits would provide the income replacement you require to ensure you can pay your bills?  If you do not have any workplace benefits, or those workplace benefits exclude injuries caused during a auto accident, do you have the coverage available to treat those long term injuries.  The standard limit for medical, rehabilitation and attendant care coverage is $65,000.  This limit does not go far if you require intense medical rehabilitation after an accident.  

Claims happen,  people need income replacement, in-home healthcare, housekeeping, and other support services. Insurance companies base their pricing on real-time claims data, which underscores the reality that these risks are not just hypothetical — they are real and frequent. 

• Self-employed or people without workplace health plans may not have access to workplace disability plans.  These people reply entirely on the ability to work for income and don't have access to medical health plans to pay for the extra medical expenses.
• If a student were injured in a auto accident, there semester at school could be interrupted as they heal.  The cost of lost tuition, books, rent could be in the thousands of dollars.
• Stay-at-home parents play a pivotal role in the family dynamic.  If they are injured, the caregiver and housekeeping benefits can help the family manage
• Low income earners may not be able to absorb the extra costs associated with lost wages, extra medical expenses or extra costs associated with hiring day care or property maintenance.
• People who do not have an auto policy.  Under the new accident benefits program, only people who are listed on an auto policy will have access to the optional accident benefits.  This lack of this coverage is extra important to those people who may not own a vehicle, but rely on bicycles or ebicycles for the main mode of transportation.  With the introduction of this new program, there is the option to purchase a "drivers' policy that will allow people to purchase the accident benefits coverages even if they do not own a car. 

 Before making decisions about optional coverage, review your workplace benefits plan. Contact me and I would be happy review all coverages with you in great detail.