ONTARIO ACCIDENT BENEFITS CHANGES 2026: WHAT YOU NEED TO KNOW
Starting July 1, 2026, Ontario is making major changes to the Statutory Accident Benefits Schedule, commonly referred to as SABS. These reforms affect how motor vehicle claims and auto accident benefits work after a car accident.
Accident benefits that were once automatically included in every policy will now be optional. This shift puts more responsibility on drivers and families to choose the coverage they need before an accident happens.
If you are injured in a motor vehicle accident after July 1, 2026, your ability to receive financial support may depend on the choices made in your insurance policy.
Don’t wait until you’re hurt to find out you are underinsured.
WHAT IS CHANGING UNDER THE NEW SABS RULES?
Ontario is moving from a standard accident benefits system to a consumer choice model. Under this new structure, only limited benefits are guaranteed, while others must be specifically selected and paid for in advance.
Benefits That Remain Mandatory
These benefits will still be included in every standard auto insurance policy:
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Medical benefits
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Rehabilitation benefits
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Attendant care benefits
While these benefits remain available, the default coverage limits may be lower than many people expect.
Benefits That Will Become Optional
As of July 1, 2026, the following benefits will no longer be automatically included:
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Income replacement benefits
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Non-earner benefits
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Housekeeping and home maintenance benefits
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Death and funeral benefits
If these optional benefits are not added to your policy, you may have no access to them after a collision.
ONTARIO ACCIDENT BENEFITS: BEFORE VS. AFTER JULY 1, 2026
Before July 1, 2026
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Most accident benefits were automatically included
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Built-in financial protection after an injury
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Less need for detailed insurance customization
After July 1, 2026
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Only basic medical style coverage is guaranteed
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Income support and daily living benefits must be purchased
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Higher risk of being underinsured after a serious accident
WHAT THE NEW AUTO INSURANCE RULES MEAN FOR INJURED DRIVERS
1. You Could Lose Income Protection
If you cannot work due to accident-related injuries, income replacement benefits will only be available if you opted in beforehand. Without this coverage, there may be no weekly payments to replace lost wages.
2. Daily Support May Not Be Available
Housekeeping and home maintenance benefits help injured people manage everyday tasks while recovering. Without opting in, these supports may not exist at all.
3. Increased Complexity for Motor Vehicle Claims
With fewer automatic benefits, accident victims may be forced to pursue tort claims and legal action more often to recover losses not covered by insurance.
4. Greater Risk for Vulnerable Road Users
Pedestrians, cyclists, passengers, and non-drivers may find coverage limited depending on how policies are structured and who is named on them.
5. Coverage Gaps May Only Become Clear after an Accident
Many people will not realize what benefits they declined until they try to access support after an injury when it is often too late to fix the problem.
OPTIONAL BENEFITS WE STRONGLY RECOMMEND DISCUSSING WITH YOUR BROKER
Before renewing or purchasing auto insurance, it is critical to have a detailed conversation with your broker about optional accident benefits. Based on current guidance, consider asking about the following:
Increased Medical, Rehabilitation, and Attendant Care Limits
You can choose to increase these benefits to the maximum available amount, which can be essential after a serious or catastrophic injury.
Income Replacement Benefits
Opting in allows you to receive weekly payments if you cannot work. You may also increase the weekly benefit amount to:
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$600 per week
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$800 per week
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$1,000 per week
The appropriate level often depends on your employment income and household financial needs.
Housekeeping and Home Maintenance Benefits
This optional benefit provides up to $100 per week to help cover services such as cleaning, snow removal, and basic home upkeep during recovery.
More information about these options is available through the Financial Services Regulatory Authority of Ontario.
WHO IS AFFECTED BY THESE CHANGES?
The new SABS rules apply to:
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All new auto insurance policies issued on or after July 1, 2026
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Existing policies at renewal after that date
Optional benefits typically apply only to named insured individuals, listed drivers, spouses, and dependents, depending on policy details.
WHAT ONTARIO DRIVERS SHOULD DO BEFORE THEIR NEXT RENEWAL
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Review your auto insurance policy before your next renewal
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Ask clear questions about optional accident benefits
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Understand what protections you may lose under the new system
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Seek legal advice if you have been injured in a motor vehicle accident
HOW LITTLEJOHN BARRISTERS CAN HELP
At Littlejohn Barristers, we represent injured clients in complex motor vehicle claims and accident benefits disputes. We help clients understand their rights under Ontario’s evolving insurance system and pursue fair compensation when benefits are denied, reduced, or unavailable.
Whether your claim involves income replacement issues, disputes over medical benefits, or a lawsuit following an accident, our team is here to guide you.
