What you need to know about Ontario's Auto Reform
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Summary
- Starting July 1, 2026, Ontario has updated the Accident Benefit coverages to give you more flexibility to tailor your coverage.
- While certain essential benefits will continue to be included with your policy, all others will be optional and can be selected or removed starting July 1, 2026.
Motor vehicle accidents can be stressful, but if you're injured in an accident in Ontario, your auto insurance is there to support you. Accident Benefits, provide financial and medical support – no matter who was at fault.
Starting July 1, Ontario has updated the Accident Benefit coverages for auto insurance. These updates are intended to give you more flexibility to tailor your coverage according to your needs. If you're wondering how these changes affect your coverage, this guide provides a clear breakdown of what you need to know.
What are Accident Benefits?
Accident Benefits are coverages that ensure you have support if you're injured in a motor vehicle accident. These coverages can help with Medical Care, Income Replacement and more. Some benefits are built right into your automobile insurance policy, while others are available at an additional cost. You can choose the level of protection that is right for you and your family.
These are the different types of Accident Benefits:
Medical, Rehabilitation and Attendant Care Benefits
This mandatory coverage helps pay for the care you need to recover after a motor vehicle accident. It covers medical care, diagnostic tests, ongoing therapy and even home or vehicle modifications.
Optional coverage
Income Replacement Benefit
Replaces part of your income if motor vehicle accident-related injuries prevent you from working.
Non-Earner Benefit
Provides weekly payments if you do not have any employment income and your injuries prevent you from carrying out normal activities.
Caregiver Benefit
Covers costs for someone to care for dependants if you are unable to due to an injury.
Dependant Care Benefit
Coverage that helps employed individuals cover extra childcare or caregiving costs during recovery.
Housekeeping and Home Maintenance Benefit
Helps to cover the costs of a service provider to carry out tasks like cleaning or yard work if injuries prevent you from doing them.
Death Benefits and Funeral Benefits
Provides a lump sum payment to surviving family members and helps to cover the funeral costs of someone who passes away due to a motor vehicle accident.
Other benefits
Help to cover costs related to damaged personal items, lost educational expenses and visitor expenses. Can also ensure your benefits are indexed to inflation.
Injury categories
Every accident is different and so is every injury. The benefits you receive depend on what category your injury falls into. Auto insurance groups injuries into three categories, based on severity:
Minor injury
Includes sprains, strains, bruises, cuts and other soft tissue injuries. These types of injuries are typically covered up to $3,500 under the Minor Injury Guideline.
Non-catastrophic injury
Covers more serious injuries like broken bones, concussions, or psychological trauma. These injuries may qualify for up to $65,000 in combined medical and attendant care benefits, or even more if optional coverage has been added.
Catastrophic injury
Covers life-altering injuries like paralysis or significant brain trauma. People in this category may be eligible for up to $1 million in benefits, or even more if optional coverage has been added. A formal medical assessment is required to confirm this classification.
Understanding the right coverage for you
You have more choice and control over your Accident Benefits. While certain essential benefits will continue to be included with your policy, all others will be optional and can be selected or removed starting July 1, 2026.
