Ontario accident benefits changes July 2026 made medical, rehabilitation and attendant care benefits mandatory, while many other benefits became optional. Renewals generally keep existing coverage unless the named insured declines it in writing; new policies require an election. This guide explains who is covered and what to check.
Key takeaways: Medical, rehabilitation and attendant care remain mandatory. Income replacement, non-earner, caregiver, other expenses, death and funeral, dependant care and indexation benefits are optional. Optional benefits cover the named insured, spouse, dependants and listed drivers; uninsured pedestrians, cyclists and passengers are not covered by those optional benefits.
Auto insurance now pays first for medical and rehabilitation expenses, except medication. Before renewing or buying coverage, ask a broker which optional benefits apply, who is insured, what limits are available, whether the policy renews existing coverage, and what must be declined or selected in writing. See FSRA, IBC and the SABS at https://www.fsrao.ca/industry/auto-insurance/changes-statutory-accident-benefits-coverage-ontario-july-1-2026, https://www.ibc.ca/issues-and-advocacy/auto-insurance/ontario-auto-insurance-changes and https://www.ontario.ca/laws/regulation/100034.
What changed on July 1, 2026
Statutory accident benefits are set out in the Statutory Accident Benefits Schedule (SABS), O. Reg. 34/10. They are paid by the applicable auto insurer after an accident, regardless of fault. For policies entered into or renewed on or after July 1, 2026, Parts II, IV, V and VI are optional, while the mandatory benefits remain governed by the SABS. See s. 2(1.0.1): https://www.ontario.ca/laws/regulation/100034.
To put this in place, FSRA brought in a new endorsement, OPCF 47R (“Optional accident benefits coverage & priority of payment”). It also updated the OCF-1 Application for Accident Benefits and other standard forms.
What is still mandatory
Every standard Ontario auto policy still includes:
• Medical benefits
• Rehabilitation benefits
• Attendant care benefits
Attendant care coverage has not been removed. It remains part of the mandatory coverage.
What is now optional
Based on FSRA and Insurance Bureau of Canada (IBC) materials, the benefits that became optional include:
• Income replacement benefit
• Non-earner benefit
• Caregiver benefit
• Housekeeping and home maintenance benefit
• Lost educational expenses
• Visitor expenses
• Death benefit
• Funeral benefit
• Damage to personal items
Before July 2026, the standard policy included, for example, a non-earner benefit of $185 per week, an income replacement benefit of up to $400 per week, a funeral benefit of up to $6,000, and death benefits of $25,000 for a surviving spouse and $10,000 for each dependant child. These were the standard limits before July 2026. The limits and terms of optional coverage now depend on what each insurer offers and what the policyholder buys.
Does this apply to my existing policy?
On renewal, the existing benefits generally continue unless the named insured agrees in writing to decline or change them. Check the renewal documents and policy wording. See O. Reg. 34/10, s. 2(1.0.2): https://www.ontario.ca/laws/regulation/100034.
In practice, it matters when your policy started or renewed and what you signed at renewal. If you are not sure, ask your insurer or broker for a copy of your current policy and any endorsements.
Who is most exposed: pedestrians, cyclists and passengers
The people most affected are often those who do not have an auto policy of their own. As insurers have reported, optional benefits generally cover only the named insured, their spouse, their dependants and listed drivers. A pedestrian, cyclist or passenger who is hit through no fault of their own may therefore get only the mandatory medical, rehabilitation and attendant care benefits, unless they are listed on, or a dependant under, a household policy that includes optional coverage.
Children, students, older adults who no longer drive, and people who cycle or walk to work may be affected in particular. Whether a specific person is covered depends on the policy wording and the facts. It should be checked carefully.
Who pays first: the priority-of-payment change
From July 1, 2026, IBC reports that auto insurance pays first for medical and rehabilitation expenses, except medication, ahead of workplace or private health plans. Before this change, injured people often had to claim through their extended health plan first. That order has now changed for most medical and rehabilitation costs, so it is worth confirming which plan to bill for treatment.
Wider concerns about the reform
The reform was presented as a way to give drivers more choice. Commentators, including personal injury lawyers, have raised several concerns:
• Premiums. There is public debate about whether premium reductions match the coverage that has become optional. Some commentators describe this as paying about the same for less.
• Complexity. Choosing insurance coverage is not a simple consumer purchase. Policyholders are asked to predict their future needs when choosing coverage, often without a clear sense of what an accident could cost.
• Affordability. People under financial strain may be more likely to decline optional coverage, even though they may be the least able to absorb lost income after an accident.
• Cost shifting. If fewer people have income replacement or similar benefits, more of the cost of serious injuries may fall on public healthcare and social programs such as the Ontario Disability Support Program, Ontario Works and Employment Insurance.
Ontario’s Insurance Act has long been seen as legislation that protects consumers. Whether the new optional model serves that purpose well is likely to remain under discussion.
Accident benefits and a claim against the at-fault driver
Accident benefits are separate from a lawsuit (a tort claim) against an at-fault driver or another responsible party. Someone who was injured through another person’s negligence may be able to seek compensation through a tort claim, including for some losses that optional accident benefits would otherwise have covered. Tort claims have their own legal requirements, thresholds, deductions and deadlines. How accident benefits and a tort claim affect each other depends on the facts and is worth reviewing early.
If your accident benefits are denied
Insurers sometimes deny or limit accident benefits. In Ontario, disputes over accident benefits are generally decided by the Licence Appeal Tribunal (LAT). Keep copies of all forms, denial letters and medical records. Strict timelines can apply.
Checklist: review your auto policy
1. Get your current policy and every endorsement, including any OPCF 47R.
2. Check whether you accepted, declined or changed optional benefits at your last renewal, and whether you signed anything in writing.
3. Confirm which optional benefits you have and their limits (for example, income replacement and caregiver benefits).
4. Confirm who is covered: you, your spouse, your dependants and listed drivers.
5. Think about household members who do not drive, such as children, students, cyclists and pedestrians.
6. Compare your workplace or private health benefits, keeping in mind that auto insurance now pays first for most medical and rehabilitation costs.
7. Ask your broker or insurer to explain anything that is unclear, in writing.
Conclusion
Ontario accident benefits changes July 2026 make policy review important. Check the certificate, renewal documents and any written election, then contact Booni Law at admin@boonilaw.com or +1 (226) 271-1751 to discuss your questions. No outcome is promised.
Frequently Asked Questions
Are all accident benefits optional now?
No. Medical, rehabilitation and attendant care benefits are still mandatory. Most other benefits, including income replacement and non-earner benefits, became optional on July 1, 2026.
What is OPCF 47R?
OPCF 47R is the endorsement FSRA introduced for optional accident benefits coverage and priority of payment. It records the optional coverage attached to a policy.
I was a pedestrian or cyclist hit by a car. Am I covered?
You may be entitled to the mandatory medical, rehabilitation and attendant care benefits. Optional benefits apply only to the named insured, spouse, dependants and listed drivers, and only if the policy includes them. See O. Reg. 34/10, ss. 2(1.0.4) and 4.1(2): https://www.ontario.ca/laws/regulation/100034.
Did my coverage change automatically on renewal?
On renewal, existing benefits generally continue unless the named insured agrees in writing to decline or change them. See O. Reg. 34/10, s. 2(1.0.2): https://www.ontario.ca/laws/regulation/100034.
Is the income replacement benefit still $400 per week?
Up to $400 per week was the standard limit before July 2026. The benefit is now optional, and its availability and limits depend on the coverage bought from your insurer.
Can I still sue the at-fault driver?
A tort claim against an at-fault party is separate from accident benefits and may still be available, depending on the circumstances and the applicable legal requirements.
Questions about your coverage or claim
If you or a loved one has been injured in a car accident and you have questions about your accident benefits coverage or a potential claim, contact Booni Law by emailing admin@boonilaw.com or calling +1 (226) 271-1751 to discuss your situation.
Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Reading this article does not create a solicitor-client relationship between you and Booni Law. The information in this article may not reflect the most current legal developments and should not be relied upon as a substitute for professional legal advice tailored to your specific circumstances. If you require legal advice, please contact Booni Law.
