The biggest change to auto insurance in Ontario is coming in 2026. The Ontario government has decided to do away with most mandatory benefits included in all auto insurance policies and move to a “a la carte” model.
Effective July 1, 2026, only medical, rehabilitation, and attendant care benefits will be included in every auto insurance policy. Any other benefit will become completely optional. These reforms are intended to keep costs down for drivers and provide them with more choice.
In a summary of the proposed changes, the Ontario Government stated one of the purposes of the changes is to empower Ontarians to make their own decision when it comes to which benefits to opt into:
- Enabling Consumer Choice
The mandatory auto policy is currently a one size fits all policy that provides limited optionality. Enabling greater consumer choice will allow drivers to decide what coverages are important to them and their families. This could provide drivers with an opportunity to lower their auto insurance premiums by taking advantage of a range of coverage options based on their needs.
The government will maintain mandatory auto insurance accident benefit coverage for critical coverages (medical, rehabilitation and attendant care benefits), with all other benefits becoming optional.
The change means that Income Replacement Benefits, Non-Earner Benefits, Caregiver Benefits, Educational Expenses, Visitor Expenses, Housekeeping and Home Maintenance Expenses, Damages to clothing, glasses, hearing aids, etc., Death Benefits, or Funeral Benefits will no longer be included as standard, mandatory benefits included in every auto insurance policy. Instead, Ontarians will have to select which ones they want included.
For example, the Income Replacement Benefit (“IRB”), which now provides for up to $400 per week to an insured to help offset the financial losses suffered from an inability to return to work after an accident, will become optional in 2026. This means that, if you do not opt in to the IRB and are unable to return to work, you will not be able to claim for your lost income, which will be a significant loss when you are already in a vulnerable state. Unless you opt for the Visitor Expenses benefit, no longer will your insurer cover your family's expenses (meals, hospital bills, flights, parking, mileage, etc.) when they come to visit you while you are recovering in hospital.
No-fault benefits have provided those people injured in an accident with a layer of financial security in the aftermath of what is typically one of the most traumatizing and stressful times in their lives. While freedom of choice may be enticing to some, the risk is that, historically, Ontarians are reluctant to pay a little extra for add-ons, despite the fact that those very things are critical if the time comes when they need those benefits most.
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