Starting July 1, 2026, Ontario is introducing changes under the Insurance Act (Ontario) that will provide Ontario drivers with more choice and control over their Statutory Accident Benefits (SABs) coverage under Ontario auto insurance policies.
Some SABs will become optional when you buy or renew your automobile insurance policy on or after July 1, 2026. Because you now have more choice, it’s important to review your SABs coverage to make sure it fits your unique needs. SABs are “no-fault” which means they’re available regardless of who caused the auto accident.
To view the options/changes to AB coverages please click here or read the FAQ below
ONTARIO AUTO INSURANCE REFORMS INDUSTRY FREQUENTLY ASKED QUESTIONS (FAQ)
What are Statutory Accident Benefits (SABS)?
Statutory Accident Benefits (SABS) are a type of no-fault insurance coverage provided
under Ontario’s Insurance Act that helps those injured in car accidents with medical
expenses, income replacement, and other costs, regardless of who was at fault. These
benefits are designed to assist with recovery and rehabilitation after an accident,
including medical, rehabilitation, and attendant care benefits, as well as income
support and coverage of certain other expenses, such as housekeeping or funeral
expenses.
Certain SABS are mandatory and automatically included as part of every auto
insurance policy. Benefits for medical, rehabilitation, and attendant care are set out in
regulation and will continue to be mandatory. These benefits cover medical expenses,
therapy, and personal care assistance for injuries from an accident including doctor
visits, physiotherapy, and help with daily activities like bathing and dressing.
Customers will continue to have the option to purchase higher limits for these
coverages.
Starting July 1, 2026, Ontario is making changes that will give customers more options
and control over their coverage by making some currently mandatory accident benefits
optional. Here are some of the key changes:
• Changes apply to all customers: The changes to accident benefits apply to all
new and existing customers as of July 1, 2026, irrespective of renewal date.
• Definition of covered persons: The new definition of covered persons for
optional accident benefits applies to all policies on July 1, 2026, irrespective of
policy renewal date. For optional accident benefits, definition of covered
persons will be:
o The named insured;
o The spouse of the named insured;
o The dependants of the named insured and of the named insured’s spouse;
and
o The persons specified as drivers of the insured automobile
• Existing policies must renew with the same coverages and limits:
Policies must renew with existing coverages and limits unless the customer
requests a change in writing.
• Mid-term changes: Customers can opt out of optional coverages at any time
after July 1, 2026, irrespective of policy renewal date.
• First Payor for Medical and Rehabilitation: Insurers will be the first payor
for medical and rehabilitation expenses (excluding medication) as of July 1,
2026.
What are some of the benefits of the changes?
• More choice: Benefits such as income replacement, caregiver, and
housekeeping/home maintenance will no longer be mandatory and will
become optional. If customers already have similar coverage through their
employer or another plan, they may choose to opt out of these. Learn more
about the accident benefits that are becoming optional and what they cover.
• Mandatory coverage remains: Medical, rehabilitation, and attendant care
benefits will continue to be mandatory and will remain part of their policy.
Customers can still purchase optional increases in coverage for these benefits,
but there may be more variety in insurer offerings.
• Priority of Payment: Auto insurers will become the first payor of medical or
rehabilitation benefits (except for medication expenses) if a policy holder with a
supplementary health insurance plan under which payments are reasonably
available to the insured becomes injured in an auto accident. Policy holders will
be able to tap into or preserve their supplementary health insurance plan for
other life events.
When do these changes take effect and when do I need to be ready?
The changes to SABS optionality and priority of payor take effect July 1, 2026, as a result
of Insurance Act and Statutory Accident Benefits Schedule amendments.
All intermediaries (including agents and brokers) should be ready to promote and advise
customers of the July 1, 2026, changes as part of their fair treatment of customer and
codes of conduct.
Insurers may begin offering policies (or policy change endorsements) reflecting the
SABS optionality changes on the later of July 1, 2026, or upon receipt of regulatory
approval to do so.
Which SABs benefits are optional?
Every insurer will be required to offer the following optional SABS benefits as of July 1,
2026, under every auto insurance policy/contract:
• Medical, Rehab & Attendant care (increased coverage limits of up to $130,000
for non-catastrophic impairments; up to $1,000,000 for non-catastrophic
impairments and up to $2,000,000 for catastrophic impairments; or any other
coverage limit the insurer has received approval to offer)
• Dependent care
• Income replacement
• Non-earner
• Caregiverforimpairments
• Death
• Funeral
• Housekeeping & home maintenance forimpairments
• Lost educational expenses
• Expense of visitors
• Damage to personal items (Clothing, Glasses, Hearing Aids and Other Devices)
• Indexation
Some insurers may choose to also offer the following optional benefits:
• Caregiver for catastrophic impairments
• Housekeeping and home maintenance for catastrophic impairments
There may also be other optional benefits offered that are not expressly set out in the
SABS but have been approved by FSRA’s Chief Executive Officer.
Applicability of optional benefits remains narrower than for mandatory benefits.
Who Will Be Covered?
Optional benefits will apply to the:
• Named Insured
• Spouse ofthe Named Insured
• Dependents of the Named Insured and of the Named Insured’s Spouse
• Persons Specified in Policy as Drivers
Who Will Not Be Covered (unless they have their own policy with
optional benefits)?
Other individuals (e.g., uninsured passengers, pedestrians) will not have access to
optional benefits under a vehicle’s auto insurance policy if they are injured in an auto
accident. To have access to optional accident benefits, individuals that fall outside of
this list must have their own auto insurance policy under which they have purchased
optional benefits.
Which benefits are first payor? Which benefits remain first
payor under private disability?
Amendments coming into effect on July 1, 2026, will require auto insurers to pay for
medical and rehabilitation expenses, with the exception of medication expenses, for
injuries sustained as a result of an auto accident before these expenses are paid under
a supplementary health insurance plan under which payments are reasonably
available to the insured.
Do the first payer changes for medical and rehabilitation benefits
beginning July 1, 2026,impact existing customerswho don’t make
changes to their policy to opt out/in to optional SABs?
Yes. The first payor changes apply to any accident that occurs in Ontario on or after July
1, 2026.
Do these changes only apply to Personal Lines Auto or ALL Auto
including commercial lines / fleet?
The changes apply to all automobile insurance contracts that carry SABS coverage.
What forms are being updated?