Quick answer
What you need to know first
Starting July 1, 2026, Ontario auto policies will continue to include mandatory medical, rehabilitation and attendant care benefits, but other accident benefits coverage will become optional according to FSRA. Before renewal, policyholders should ask their broker which optional SABS benefits are included, especially income replacement, caregiver and non-earner coverage. After an accident, injured people should still report the crash promptly, apply for accident benefits, preserve medical and income records, and get legal advice before accepting a denial or signing a settlement.
What changes on July 1, 2026?
FSRA's current guidance says Ontario is moving to SABS optionality on July 1, 2026. Medical, rehabilitation and attendant care benefits remain mandatory. Other accident benefits coverage becomes optional, which means consumers may need to actively choose coverage that used to feel automatic. The legal problem is practical: many families do not think about accident benefits until after a collision, when it is too late to add coverage for that accident.
- Medical, rehabilitation and attendant care benefits remain mandatory under FSRA's 2026 guidance.
- Other accident benefits coverage becomes optional, so renewal choices matter before an accident happens.
- The change affects how people should review income replacement, caregiver, non-earner and other supports.
- Insurers, agents and brokers are expected to explain the changes to consumers before renewal.
- A post-accident claim still depends on the policy, priority rules, medical evidence and insurer decisions.
Ontario Auto Coverage — July 1, 2026
What Changes on July 1, 2026?
Stays Mandatory
Medical, rehabilitation, and attendant care benefits remain automatic on every policy.
Becomes Optional
Income replacement, caregiver, and non-earner benefits must now be chosen and paid for.
Choose Before You Crash
Optional coverage cannot be added after an accident — the choice you make at renewal is the coverage you keep.
Income replacement benefits: the coverage question employees should ask before renewal
Income replacement benefits can matter when an injured person cannot work after a crash. Under the 2026 optionality model, policyholders should not assume that every income-related benefit they have heard about will automatically be included at renewal. Before choosing a lower premium, ask exactly what income replacement protection remains on the policy, what weekly limits apply, and whether optional increases are available. After an accident, keep pay stubs, tax records, job descriptions, disability notes and return-to-work communications because insurers often dispute both disability and income calculations.
- Ask whether income replacement benefits are included and whether optional increases are available.
- Confirm weekly limits, waiting periods, eligibility tests and any exclusions with the broker or insurer.
- Preserve pre-accident income records, employment contracts, T4s, pay stubs and self-employment records.
- Do not rely on a verbal explanation of coverage; keep the declaration page and endorsements.
- If the insurer denies IRBs, review the denial reason and LAT deadline before responding.
Caregiver and non-earner benefits: why families should not treat optional as unimportant
Caregiver and non-earner benefits are easy to overlook because they sound narrow until a serious injury disrupts daily life. A parent, student, retiree or person between jobs may not fit neatly into an income-replacement analysis, but still may face a major loss of function after a crash. The 2026 change makes it important to ask whether these benefits are included, excluded or available only through optional purchase. For injured claimants, the evidence should focus on functional limits, household duties, caregiving responsibilities, medical restrictions and the practical impact on daily life.
- Caregiver benefits can matter where an injured person provided care before the accident.
- Non-earner benefits may matter for people who were not working but suffer a substantial inability to carry on normal life.
- Household and caregiving evidence should be gathered early, not months after the dispute begins.
- Medical notes should describe function, not only diagnosis.
- Coverage questions should be answered before renewal; entitlement disputes should be reviewed quickly after a denial.
Passengers, pedestrians and cyclists still need accident-benefits advice
Ontario accident benefits are not only for drivers. Passengers, pedestrians and cyclists injured in motor vehicle accidents may also have a SABS claim, often through their own insurer, a household policy, the vehicle's insurer or another priority insurer. The 2026 optionality change does not eliminate that basic claim pathway, but it can make the available coverage and priority analysis more important. If you were hit as a pedestrian or cyclist, or injured as a passenger, the first task is to identify the correct insurer, submit the application on time, and preserve medical, police, witness and income evidence.
- Identify all possible insurers: your policy, a household policy, the vehicle's insurer and any priority insurer.
- Report the accident and request the accident-benefits package promptly.
- Keep police reports, photos, witness details, hospital records and follow-up treatment notes.
- Do not assume you have no claim because you were not driving.
- If insurers dispute priority or coverage, get advice before the file stalls.
What to do now if you already have an accident-benefits claim
If the accident has already happened, the renewal-choice discussion is different from the claim strategy. Optional benefits generally cannot be added after the fact for that accident. The focus becomes the policy in force on the accident date, the OCF forms already submitted, treatment plans, insurer examinations, denials and limitation periods. A lawyer can review whether the insurer is applying the correct policy wording, whether benefits were denied for valid reasons, and whether a LAT application should be filed.
- Find the policy and declaration page that applied on the accident date.
- Collect every OCF form, treatment plan, insurer letter, examination notice and denial.
- Calendar any LAT limitation period as soon as a benefit is refused.
- Ask whether the dispute is about coverage, disability, treatment necessity, priority insurer or medical evidence.
- Link the accident-benefits strategy with any tort claim against an at-fault driver.
Step by step
Protecting a Claim Through the 2026 Change
-
Find your policy and accident date
Coverage is set by the policy in force when the crash happened.
-
Confirm mandatory benefits are paid
Medical, rehabilitation, and attendant care must still be honoured.
-
Document every denial or reduction
Keep dated letters, forms, and adjuster communications.
-
Get a SABS denial reviewed in time
Strict deadlines apply before a benefit decision becomes final.
How UL Lawyers reviews 2026 accident-benefits issues
UL Lawyers reviews the legal and practical picture together: what coverage was purchased, what benefits were claimed, what the insurer accepted or denied, and what evidence is missing. For 2026 renewal questions, that may mean identifying coverage gaps before an accident. For current claims, it may mean challenging a denial, preparing evidence for the Licence Appeal Tribunal, or coordinating accident benefits with a personal injury lawsuit. The goal is to protect treatment, income and daily-life supports while avoiding missed deadlines.
- Policy and optional-benefits review before or after renewal.
- OCF application, treatment-plan and denial-letter review.
- Income replacement, caregiver, non-earner and attendant care evidence planning.
- Passenger, pedestrian and cyclist priority-insurer analysis.
- LAT dispute strategy and coordination with the broader injury claim.
FAQ
Frequently asked questions
FSRA states that medical, rehabilitation and attendant care benefits will remain mandatory. Other accident benefits coverage becomes optional, so consumers should confirm what is included before renewal.
Do not assume so. FSRA describes the 2026 reform as making accident benefits coverage optional except for medical, rehabilitation and attendant care. Ask your broker or insurer whether income replacement benefits are included, what limits apply, and whether optional increases are available.
Yes, the accident-benefits system can still matter for passengers, pedestrians and cyclists injured by a motor vehicle. The correct insurer and available coverage may depend on priority rules and policy wording, so early advice is important.
Optional benefits generally protect future accidents after the coverage is purchased. They usually do not increase coverage for an accident that already happened. For an existing claim, review the policy in force on the accident date and any insurer denials.
Save the policy declaration page, OCF forms, denial letters, treatment plans, medical notes, pay records, police reports, photos, witness information and all insurer correspondence.
As soon as a benefit is denied or reduced. LAT limitation periods can apply, and the denial letter, policy wording and medical evidence should be reviewed before you respond or miss a deadline.