Starting July 1, 2026, the Province of Ontario is introducing changes to auto insurance that give drivers greater flexibility to personalize accident benefit coverage.
The most important things to know are:
- Your current coverage will not change automatically.
- Your policy will continue exactly as it is unless you decide, in writing, to make changes.
Why is Ontario making this change to auto insurance?
The main goal is to lower auto insurance premiums by allowing drivers to pay for the benefits they want, instead of automatically paying for a full bundle of accident benefits.
What is changing?
Some accident benefits that were previously included in every auto insurance policy will become optional.
- These include benefits such as:
Income replacement if you cannot work after an accident
- Caregiver benefits
Housekeeping and home maintenance assistance
- Non-earner benefits for those not working at the time of an accident
- Death and funeral benefits
Medical, rehabilitation, and attendant care benefits will continue to be included in every policy.
Who is covered by these benefits?
Accident benefits generally apply to you, members of your household, and passengers in your vehicle if someone is injured in an automobile accident, regardless of who is at fault.
Why might someone choose to keep these benefits?
These benefits can help fill important financial gaps after an accident. For example:
- If an injury prevents you from working for a period of time
- If someone in your household needs help caring for children or dependents
- If daily household tasks become difficult during recovery
For many families, these benefits provide an additional layer of financial protection when life is unexpectedly disrupted by an auto accident.
Why might someone consider removing them?
Some people already have coverage through other sources, such as:
- Workplace disability insurance
- Extended health or group benefit plans
- Personal savings or other financial resources
Those with duplicate coverage may choose to remove certain optional benefits to help reduce their auto insurance premium.
What are the potential savings and the potential gaps?
Expected potential savings could range from $60 to $300 a year. For many drivers, removing optional benefits may slightly reduce premiums, but in the event of a serious accident, a gap in coverage could be financially devastating.
The decision should be based on whether you are confident in sufficient coverage elsewhere.
What happens next?
For clients of Gibb Insurance Brokers, we will reach out to you well before your renewal date to ensure you have the coverage you want and need.
Feel free to reach out to us if you have any questions. 519-736-8228