Ontario's 2026 Accident Benefits Overhaul: What Changed on July 1 and What It Means for You

On July 1, 2026, the way car accident benefits work in Ontario changed in a big way. For years, every auto insurance policy in the province came with a long list of accident benefits built in. You paid for them whether you thought about them or not. Now that has flipped. Most of those benefits are optional. You only get them if you choose to buy them.

This is the largest change to Ontario accident benefits in more than a decade. If you drive, ride, or walk in Ontario, it affects you. If you are hurt in a crash after July 1, 2026, the benefits you can claim will depend on choices made when the policy was bought, not just on how badly you were injured.

This guide explains the change in plain words. It covers what stayed mandatory, what became optional, who can buy the optional coverage, what happens to policies bought before the change, and how all of this affects your right to sue the driver who hurt you. The rules come straight from the Statutory Accident Benefits Schedule, known as the SABS, which is Ontario Regulation 34/10, as changed by Ontario Regulation 383/24. You can also read the government summary of the change on the FSRA website.

If you are reading this because you were already hurt, do not guess about your coverage. Talk to a personal injury lawyer who can pull your policy and tell you exactly what you have.

What are accident benefits in Ontario?

Accident benefits are a set of payments and services your own auto insurance company pays after a crash. They are sometimes called "no fault" benefits. That name causes a lot of confusion, so let us clear it up.

"No fault" does not mean no one is at fault. It does not mean you did something wrong. It means you claim these benefits from your own insurer no matter who caused the crash. Even if the other driver ran the red light, you still go to your own company for accident benefits. Fault is sorted out separately.

Accident benefits are different from suing the other driver. Accident benefits come from your insurer and are meant to help you right away, with things like treatment and lost income. Suing the other driver is a separate claim for the harm they caused, and it can take years. Most seriously injured people end up using both paths at once. You can read more about that split in our guide on getting accident benefits even when the crash was your fault.

Before July 1, 2026, the standard Ontario auto policy included a full menu of accident benefits by default. That menu included money for lost income, money for people who care for others, money for house cleaning and home upkeep, money for students who could not finish school, money for family visitors, money for damaged glasses and clothing, and money for funerals and deaths. It also included medical, rehabilitation, and attendant care coverage. All of it came in the box.

That is what changed.

What changed on July 1, 2026?

Here is the change in one sentence. As of July 1, 2026, only medical, rehabilitation, and attendant care benefits are mandatory in Ontario auto policies. Almost everything else became optional.

The rule that does this sits right at the front of the SABS. It says that the benefits in Parts II, IV, V, and VI of the regulation "shall be offered as optional benefits under every contract evidenced by a motor vehicle liability policy entered into or renewed on or after July 1, 2026." In plain words, those benefit groups are no longer automatic. They are add ons.

Let us translate the parts into normal language:

Part II holds the income replacement benefit, the non earner benefit, and the caregiver benefit. These are now optional.

Part IV holds lost educational expenses, visitor expenses, housekeeping and home maintenance, and payment for damaged clothing, glasses, and similar items. These are now optional.

Part V holds the death benefit and the funeral benefit. Both are now optional.

Part VI holds extra optional coverage, such as higher medical limits and extra catastrophic coverage. These were already optional, and they stay optional.

Part III is the important one that did not move. Part III holds medical benefits, rehabilitation benefits, and attendant care benefits. Those stay mandatory. Every Ontario auto policy still includes them, and you do not have to buy them separately.

So the new picture is simple. Treatment coverage is still guaranteed. Income and household coverage is now something you have to choose and pay for. If you do not choose it, and you get hurt, that money is not there.

Which benefits are still mandatory, so you get them automatically?

Three benefit types are still built into every Ontario auto policy. You get them no matter what. Here is what each one covers and how much it pays.

Medical benefits

Medical benefits pay for reasonable and necessary treatment you need because of the crash. That includes doctors, hospital services, nursing, physiotherapy, chiropractic care, psychology, occupational therapy, medication, prescription glasses, wheelchairs and other mobility devices, prosthetics, and more. The full list is in section 15 of the SABS.

Rehabilitation benefits

Rehabilitation benefits pay for services that help you get back to your life and your work. That includes things like life skills training, vocational assessments, retraining, home changes to fit your needs, vehicle changes, and counselling for you and your family. The list is in section 16.

Attendant care benefits

Attendant care benefits pay for a person who helps you with daily living, such as bathing, dressing, and getting around, when your injuries are serious enough. This applies when your injury is more than a minor injury. It is set out in section 19.

How much do the mandatory benefits pay?

The dollar limits depend on how serious your injury is. There are three levels.

If your injury is a minor injury, the limit is $3,500. A minor injury is defined in the SABS as a sprain, strain, whiplash associated disorder, contusion, abrasion, laceration, or subluxation, plus any clearly related effects. This $3,500 cap comes from the Minor Injury Guideline. Many people are placed in this category at first, and getting out of it can raise your limit a lot. We cover that in detail in our guide to the Minor Injury Guideline and the $3,500 cap.

If your injury is not minor and not catastrophic, the combined limit for medical, rehabilitation, and attendant care is $65,000. This total covers all three together, not $65,000 each. Within that total, attendant care for a non catastrophic injury cannot go over $3,000 per month.

If your injury is catastrophic, the combined limit for medical, rehabilitation, and attendant care jumps to $1,000,000. Within that total, attendant care can go up to $6,000 per month. A catastrophic impairment is a special legal category for the most serious injuries, such as certain brain injuries, paralysis, blindness, amputations, and severe overall impairment. We explain how it works and how much it is worth in our guide to catastrophic impairment benefits.

One more point on time. For most non catastrophic injuries, medical, rehabilitation, and attendant care benefits stop 260 weeks after the accident, which is five years. If you were under 18 at the time, they can run to age 28. For catastrophic injuries, there is no such time limit.

These limits were set back in 2016 and are not raised each year for inflation. So the $65,000 and the $1,000,000 are the same numbers in 2026 as they were years ago. That matters, because serious care can burn through $65,000 quickly.

Which benefits became optional, so you now have to buy them?

This is the heart of the 2026 change. The benefits below used to come with your policy. Now you only have them if you bought the option. If you did not, you cannot claim them after a crash.

Income replacement benefit

This is the one most people care about. The income replacement benefit, often called the IRB, replaces part of your income when you cannot work because of the crash. For many years, the standard version paid 70 percent of your gross weekly income, up to a cap of $400 per week, after a one week wait. You could always buy a higher cap, such as $600, $800, or $1,000 per week.

As of July 1, 2026, the base income replacement benefit is optional. The amount is now set by the optional coverage you buy. If you did not buy income replacement coverage, and you cannot work after a crash, this weekly payment is not available to you through accident benefits. For many working families, this is the single most important box to check. Learn more in our guide to income replacement benefits.

Non earner benefit

The non earner benefit helps people who were not working at the time of the crash but who suffer a complete inability to carry on a normal life. Students and recent graduates are common examples. The standard payment was $185 per week, starting four weeks after the crash, and it was not paid before age 18. It is now optional.

Caregiver benefit

The caregiver benefit helps someone who was the main unpaid caregiver for a child or another dependent and can no longer do that job because of the crash. The standard amounts were $250 per week for the first person in need of care, plus $50 per week for each additional person. It is now optional.

Housekeeping and home maintenance

This benefit paid for cleaning, yard work, and home upkeep you could no longer do yourself. The standard amount was up to $100 per week. It is now optional.

Lost educational expenses

If you were a student and the crash forced you to stop your program, this benefit repaid tuition, books, and similar costs you had already paid. It is now optional.

Visitor expenses

This benefit covered reasonable costs for family members and close others to visit you during your treatment and recovery. It is now optional.

Damage to clothing, glasses, and devices

This benefit paid to repair or replace items like clothing, prescription glasses, dentures, hearing aids, and prosthetics damaged in the crash. It is now optional.

Death benefit and funeral benefit

If a person dies in a crash, the death benefit paid money to the surviving spouse and dependants, and the funeral benefit helped with funeral costs. Under the old standard, the death benefit paid $25,000 to a spouse and $10,000 to each dependant, and the funeral benefit paid up to $6,000. Both are now optional. If you want your family protected this way, it has to be in the policy.

What the amounts look like now

Here is a subtle but important point. In the new rules, these optional benefits pay "the amount fixed by the optional benefit." That means the dollar figure is tied to the specific option you purchase, not locked into the regulation the way it used to be. So the old standard numbers above are a useful guide to what these benefits were worth, but the exact amount going forward depends on the coverage you buy and the forms your insurer offers. When you review your policy, ask your broker for the exact dollar figure attached to each option.

Who is even allowed to buy the optional benefits?

The 2026 rules also narrow who the optional benefits can protect. Under the SABS, the optional benefits apply only to four groups:

The named insured, meaning the person who owns the policy. The spouse of the named insured. The dependants of the named insured and the spouse. And the people listed on the policy as drivers of the insured car.

This is a real change in who is covered. In the past, some accident benefits could reach passengers and other people involved in a crash even if they were not on that policy. Now the optional benefits are tied to the policy and the people named on it.

This creates gaps to watch for. A passenger who does not have their own auto policy, and who is not a dependant or listed driver on the policy of the car they were in, may not have access to the optional benefits. A pedestrian or cyclist with no auto policy of their own can be in the same position. These people still have the mandatory medical, rehabilitation, and attendant care coverage through the applicable policy, and they still have the right to sue the at fault driver. But the optional income and household benefits may not be there for them. If you were a passenger, a pedestrian, or a cyclist, this is a reason to speak with a car accident lawyer about where your coverage actually comes from.

What if I bought my policy before July 1, 2026?

Good news if you already had a policy. The change does not strip benefits away from you without warning. Existing policies keep their current coverage.

The rule works like this. Policies entered into or renewed on or after July 1, 2026 offer the new structure, where the extra benefits are optional. If you had a policy before that date, you keep the benefits you had, unless you and your insurer agree in writing to change them. The SABS allows a named insured and an insurer to agree, in writing, to change the optional benefits in an older policy on or after July 1, 2026. So nothing is removed from your old policy behind your back.

The moment to pay attention is your renewal. When your policy renews after July 1, 2026, it moves into the new world. At that point, the extra benefits become choices. If you do nothing and just let the paperwork slide by, you may end up with a thinner policy than you had before, because the default box no longer includes income replacement and the rest.

The safe habit is simple. Read your renewal. Look for the list of optional benefits. Decide on purpose which ones you want. Do not let the most important protections drop off just because the form changed.

Does this change my right to sue the driver who hurt me?

No. This is one of the most important things to understand. The 2026 change is about accident benefits, which come from your own insurer. It does not touch your right to bring a lawsuit against the driver who caused the crash.

If another driver injured you, you can still sue that driver for your losses. That lawsuit can claim things that accident benefits do not fully cover, such as pain and suffering, the full value of your lost income over time, loss of future earning ability, and the cost of future care. For many seriously injured people, the lawsuit is where the largest part of the recovery comes from. You can read how those numbers are built in our guide on how a car accident settlement is calculated.

There are two long standing limits on car accident lawsuits in Ontario that did not change in 2026, and you should know both.

The verbal threshold

To sue for pain and suffering after a car crash, your injury has to be serious enough to pass what lawyers call the verbal threshold. Under section 267.5 of the Insurance Act, the injury generally has to be a permanent serious impairment of an important physical, mental, or psychological function, or a permanent serious disfigurement. Minor and short lived injuries usually do not qualify. Serious, lasting injuries usually do.

The deductible

Even when your injury passes the threshold, Ontario applies a deductible to the pain and suffering part of your award. The deductible is a fixed amount that is subtracted from that award. It rises a little each year with inflation.

For 2026, the pain and suffering deductible is $47,913.01. There is a catch that helps badly injured people. If your pain and suffering award reaches a set threshold, the deductible disappears entirely. For 2026, that threshold is $159,708.71. So an award at or above that level is not reduced by the deductible at all. These 2026 figures come from the annual indexation published by FSRA, which raised the amounts by 2.4 percent for 2026. Family Law Act claims by relatives have their own lower numbers, with a 2026 deductible of $23,956.52 and a threshold of $79,853.70.

We break the deductible down with examples in our guide to the pain and suffering deductible. The short version is that the deductible is a strong reason to value your claim carefully, because pushing an award above the threshold can be worth far more than the raw difference in the numbers.

Why did Ontario make this change?

The stated goal was choice and cost. Ontario has some of the highest auto insurance premiums in the country. For years, drivers, brokers, and insurers argued that the standard policy forced everyone to pay for a wide set of benefits, even people who felt they did not need all of them. A young driver with no dependants was paying for caregiver and death benefits. A retiree with a workplace pension was paying for income replacement.

The government response was to make the coverage modular. Keep the core treatment benefits mandatory, since everyone can be hurt and need care. Turn the rest into options, so drivers can match their coverage to their life and, in theory, lower their premium by dropping what they do not want. The Insurance Bureau of Canada and Ontario's regulator, FSRA, have published explainers on the reasoning behind the shift.

Supporters say this gives drivers control and can reduce premiums for people who opt out of extras. Critics, including many injury lawyers, warn that most drivers do not read their policies closely and do not understand what they are giving up. Many people will only discover the gap after they are hurt, when it is too late to buy the coverage back. Both points can be true at once. The reform gives you power, and it gives you a way to hurt yourself if you are not careful. That is exactly why understanding it matters.

What does this mean for me in real life?

The best way to see the impact is through everyday examples. These are illustrations, not legal advice, but they show how the choice can play out.

A working parent with a mortgage

Picture a parent who earns a steady salary and supports a family. Before 2026, income replacement came built in. Now it is optional. If this parent drops income replacement to save a little on premium, and then a serious crash keeps them off work for a year, there is no weekly accident benefit cheque to cover the mortgage and groceries. For a household that depends on a paycheque, buying back income replacement is usually the most important decision on the list.

A self employed contractor

A self employed worker often has no sick leave and no employer benefits. If the crash stops the work, the income stops. For this person, income replacement coverage can be the difference between keeping the business alive and losing it. Self employed people should look closely at both whether they have the coverage and how high the weekly cap is.

A stay at home parent

A stay at home parent may not have employment income, but the household still depends on the caregiving and housekeeping they provide. The caregiver benefit and the housekeeping benefit were built for exactly this situation, and both are now optional. Dropping them can leave a family paying out of pocket for child care and home help during a long recovery.

A student

A student who is badly hurt may lose a school year and the tuition already paid. The non earner benefit and the lost educational expense benefit were meant to soften that blow. Both are now optional. A young driver focused on the cheapest possible premium may not think about this until an injury forces a year off school.

A retiree

A retiree living on a pension may reasonably decide that income replacement is not needed, since the pension keeps coming. This is a case where opting out might make sense. Even here, though, medical needs and attendant care can be significant, and those remain mandatory, which is a comfort.

The pattern is clear. There is no single right answer for everyone. The right coverage depends on who relies on your income, who relies on your care, and how a long recovery would hit your household. The danger is treating the whole list as clutter and dropping it to shave a few dollars off the premium.

What has not changed?

With so much moving, it helps to list what stayed the same, so you do not worry about the wrong things.

Medical, rehabilitation, and attendant care benefits are still mandatory. Everyone with an Ontario auto policy still has them.

The right to sue the at fault driver is still there. Your lawsuit rights are untouched.

The catastrophic impairment category still exists, with its $1,000,000 mandatory medical and rehabilitation limit and the option to buy more.

The minor injury category and its $3,500 limit still exist.

The claim deadlines still apply. You still have to report the accident to your insurer quickly, usually within seven days, and file the benefit application forms on time. And you generally have two years to start a lawsuit against the at fault driver. Missing these deadlines can end a claim, so they matter as much as ever. Our guide on how long you have to sue after a car accident walks through the time limits.

The dispute process at the Licence Appeal Tribunal still applies if your insurer denies an accident benefit. If you are turned down, you can challenge it. See our guide on what to do when accident benefits are denied.

What should I do now to protect myself?

Here is a practical checklist. None of this is complicated, and doing it once can protect your family for years.

First, find your policy and read the accident benefits section. Look for the list of optional benefits and see which ones you have.

Second, pay special attention to income replacement. Ask your broker or insurer what your weekly cap is and whether you can raise it. For most working people, this is the top priority.

Third, think about who depends on you. If people rely on your income, protect income replacement. If people rely on your unpaid care or your work around the house, look at the caregiver and housekeeping options. If you have children or a spouse who would struggle without you, look at the death and funeral options.

Fourth, do not assume your old coverage carried over unchanged after a renewal. Confirm it in writing.

Fifth, keep your records. Save your policy, your renewal notices, and any emails with your broker about what you chose. If a coverage question ever comes up after a crash, these records can matter.

Sixth, if you are already hurt, get advice fast. The choices were made before the crash, but a lawyer can still find every source of coverage that applies to you, deal with the insurer, and protect your right to sue.

What if I am already injured after July 1, 2026?

If a crash has already happened, you cannot go back and buy coverage. But you are far from powerless. Take these steps.

Report the crash to your own insurer right away and ask for the accident benefit application package. There are strict, short deadlines to return these forms, so do not sit on them.

Get medical care and follow through with it. Your treatment records are the backbone of both your benefit claim and any lawsuit.

Write down what happened while it is fresh, and keep every receipt connected to the crash, from prescriptions to parking at appointments.

Do not give a recorded statement to the other driver's insurer, and do not accept a quick settlement, before you understand what your claim is worth.

Talk to a personal injury lawyer. A lawyer can read your policy, find coverage you may not know you have, identify other policies that might respond, and make sure you do not miss a deadline. Most personal injury lawyers, including our team, work on a contingency fee, which means you do not pay legal fees unless you recover money. We explain exactly how that works in our guide on what a personal injury lawyer costs.

A closer look at the most important optional benefit

Because income replacement is now optional and matters so much, it is worth understanding how it actually works. If you buy it, here is what you are getting.

Who qualifies. In general, you qualify if you were working at the time of the crash, or met a work history test in the year before it, and the injury leaves you with a substantial inability to do the essential tasks of your job. Self employed people qualify on a similar basis for their own work. The rules are in sections 5 to 7 of the SABS.

How much it pays. The base amount is 70 percent of your gross weekly income, up to the cap set by the coverage you bought. There is a one week waiting period at the start, so the benefit does not pay for the first week of disability.

The two stage test. This is the part many people miss. For the first 104 weeks, which is two years, you are judged against your own job. You qualify if you cannot do the essential tasks of the work you were doing. After 104 weeks, the test gets harder. You only keep the benefit if you cannot do any job you are reasonably suited for by your education, training, or experience. Many claims are denied at that 104 week mark, when the insurer decides you could do some other kind of work. That is a common point where people need to challenge a denial at the Licence Appeal Tribunal.

What can reduce it. The benefit can be reduced by other income you receive, such as certain disability payments, and by income you earn if you return to some work. There are also special adjustments once you reach age 65.

For a full walk through of eligibility, amounts, and how long the benefit lasts, see our detailed guide on income replacement benefits. The key point for the 2026 change is simple. This valuable benefit is now something you have to choose, and for most working people it is the first thing to protect.

Before and after: a quick comparison

Sometimes a side by side view makes the change clearest. The table below shows how the standard Ontario auto policy looked before July 1, 2026 and how it looks now. "Built in" means the benefit came with the policy automatically. "Optional" means you now have to choose and pay for it.

Read the table with one idea in mind. The top three rows are about treatment, and they did not move. Everything below them is about money and daily living, and all of it became a choice.

Optional benefits you can buy to increase your protection

The 2026 change is not only about losing the default benefits. It also keeps the older menu of upgrades you can buy to raise your limits well above the standard. If you want strong protection, these are worth knowing. They live in section 28 of the SABS and in the optional benefit rules.

Higher income replacement. You can raise the weekly income replacement cap above the standard level. High earners in particular should look at this, because the standard cap replaces only a slice of a large salary.

Higher medical and rehabilitation coverage. You can buy an option that lifts the non catastrophic medical and rehabilitation limit from $65,000 all the way up to $1,000,000. For someone with a serious but non catastrophic injury, this can be the difference between running out of treatment funding and having enough.

Extra catastrophic coverage. You can buy an option that raises catastrophic medical and rehabilitation coverage above the mandatory $1,000,000, which can matter for a lifetime of care.

Higher attendant care. Optional coverage can raise the monthly attendant care limits for the most serious injuries.

Indexation. You can buy an option that raises your benefits each year with inflation, so their value does not shrink over a long recovery.

Dependant care. You can buy coverage for the extra cost of caring for your dependants while you recover.

Think of it as a dial, not a switch. You are not stuck with the bare minimum. You can build a policy that protects your family well. The catch is that you have to ask for it, and you have to buy it before a crash happens, not after.

How do accident benefits work with my other coverage?

Many people have more than one source of help after an injury. Accident benefits do not exist in a vacuum, and it helps to understand how they fit with the rest.

Employer health benefits. If you have extended health benefits through work, some treatment may be paid there. In many cases your own plans are expected to pay before or alongside accident benefits, and the details depend on your policies. Keep your benefit cards handy and tell your treatment providers about every plan you have.

Short term and long term disability. If you have disability coverage through work or a private plan, it may pay income support after a crash. Be aware that disability payments and the income replacement benefit can affect each other, since the accident benefit is often reduced by other income replacement you receive. If your disability claim is denied, that is its own fight, and our guide on long term disability denials explains your options.

WSIB. If you were hurt in a crash while working, for example while driving for your job, your claim may run through the Workplace Safety and Insurance Board instead of, or alongside, auto insurance. There are rules about which system applies and whether you can sue. We cover this in our guide on choosing between WSIB and a lawsuit.

OHIP. Ontario's public health plan still covers hospital and doctor care in the usual way. Accident benefits fill gaps that OHIP does not cover, such as physiotherapy, psychology, and assistive devices.

The takeaway is to map out every source of coverage after a crash and use them in the right order. A lawyer can help you do this so that no benefit is left on the table and no deadline is missed.

How do I read my renewal and what should I ask my broker?

You do not need to be an insurance expert to protect yourself. You need to read one page and ask a few clear questions.

Find your declarations page. This is the summary page of your policy that lists your coverages and limits. Look for the accident benefits section and any list of optional benefits or endorsements, which are add ons that change your coverage.

Then ask your broker or insurer these questions, and get the answers in writing:

Do I have income replacement coverage, and what is my weekly cap? Can I raise it? Do I have caregiver and housekeeping coverage? Do I have death and funeral coverage for my family? Are my spouse and my dependants covered by the optional benefits? Did anything change at my last renewal that removed a benefit I used to have? What would it cost to add the benefits I am missing?

Keep the written answers with your policy. If a coverage dispute ever arises after a crash, a clear record of what you asked for and what you were told can be very helpful.

What are the most common mistakes to avoid?

Lawyers who handle these claims see the same avoidable errors again and again. Watch for these.

Assuming you still have income replacement. Many drivers do not realize the default changed. Confirm it, do not assume it.

Chasing the cheapest premium blindly. Shaving a small amount off your monthly bill by dropping key benefits can cost you tens of thousands of dollars if you are hurt and cannot work.

Forgetting your spouse and dependants. The optional benefits only protect named people. Make sure the people who live in your home are actually covered.

Assuming passengers and pedestrians are automatically covered. Under the new rules, a passenger or pedestrian without their own policy may not have access to the optional benefits.

Ignoring the renewal notice. Renewal is the moment your policy moves into the new structure. Read it.

Setting the income replacement cap too low for a high salary. The standard cap replaces only part of a big income. If you earn well, look at a higher cap.

Missing deadlines after a crash. The forms and time limits did not get easier. Report quickly and file on time.

Key terms explained

Named insured. The person who owns the auto policy. The optional benefits are built around this person and their household.

Dependant. Broadly, a person who depends on you financially, such as a child. Dependants can be covered by the optional benefits.

Spouse. A married or common law partner. A spouse can be covered by the optional benefits.

Minor injury. A defined group of soft tissue injuries, such as sprains, strains, and whiplash associated disorders, with a $3,500 treatment limit under the Minor Injury Guideline.

Catastrophic impairment. A legal category for the most serious injuries, which unlocks the $1,000,000 medical and rehabilitation limit and longer benefit durations.

Income replacement benefit. A weekly payment that replaces part of your income when you cannot work because of the crash. Now optional.

Attendant care benefit. Payment for a person who helps you with daily living when your injuries are serious. Still mandatory.

Deductible. A fixed amount subtracted from a pain and suffering award in a lawsuit. For 2026 it is $47,913.01, and it disappears once the award reaches $159,708.71.

Licence Appeal Tribunal. The tribunal that decides accident benefit disputes when your insurer denies a benefit.

Contingency fee. A fee arrangement where your lawyer is paid a percentage of your recovery, so you pay no legal fees unless you win.

What about accidents that happened before July 1, 2026?

If you were injured in a crash before July 1, 2026, you can relax about the reform. The benefits available for a claim are governed by the rules and the policy that were in force when the accident happened. A crash that took place before the change is handled under the older structure, where the standard benefits were built in.

So the reform does not reach back and shrink an existing claim. If your accident was in, say, March 2026, your income replacement, caregiver, and other benefits are decided the way they always were. The new optional structure only shapes claims arising from policies written or renewed under the new rules. If you are unsure which set of rules applies to your situation, a lawyer can look at your date of loss and your policy and tell you.

Does the change apply to every type of auto policy?

The reform changes the Statutory Accident Benefits Schedule, which sits under every Ontario motor vehicle liability policy. That means the core idea, keeping medical, rehabilitation, and attendant care mandatory while making the rest optional, reaches across the standard auto policies that most drivers carry.

There are situations with extra layers to check. Motorcycle policies, commercial and fleet policies, and coverage for people who drive for a living can carry their own endorsements and details. Rideshare and delivery drivers often have coverage that shifts depending on whether the app is on and whether a passenger or order is in the car. The basic accident benefit structure still comes from the same schedule, but how it applies to your exact policy can vary.

If you drive a motorcycle, run a business with vehicles, or drive for an app, do not assume. Ask your broker to confirm, in writing, which accident benefits your policy includes and which are optional. If you are hurt and the coverage picture is complicated, a lawyer can sort out which policy and which rules apply to you.

Why the mandatory limits may not be enough

It is worth being honest about the mandatory benefits that survived the reform. They are essential, but they are not generous for a serious injury.

The $65,000 combined limit for a non minor, non catastrophic injury has to cover medical care, rehabilitation, and attendant care together. A serious orthopedic injury with surgery, months of physiotherapy, and psychological treatment can use that up well before the person has fully recovered. And because this limit was set in 2016 and is not raised for inflation, it buys less care every year as costs rise.

This is exactly why the lawsuit against the at fault driver matters so much. The lawsuit is where you claim the value of your pain and suffering, your full lost income over time, and the future care that accident benefits will not cover. For a badly injured person, the lawsuit is usually the larger recovery. To see how those figures are built, read our guide on how much a car accident claim is worth and our explainer on how pain and suffering is calculated.

The reform makes this two track reality more important than ever. With fewer automatic accident benefits, the lawsuit carries even more of the weight for people who did not buy back the optional coverage.

A real Ontario example

Consider a common situation that lawyers expect to see often under the new rules. A driver renews an auto policy in the fall of 2026. To lower the premium, and without thinking much about it, the driver lets the optional income replacement benefit drop. A few months later, another vehicle runs a stop sign and hits the driver, who suffers a serious back injury and cannot return to work for eight months.

Under the old rules, this driver would have received a weekly income replacement cheque during those eight months, no questions about whether it was purchased. Under the new rules, because the coverage was dropped at renewal, there is no weekly accident benefit for lost income at all. The driver still has mandatory medical and rehabilitation coverage for treatment, and still has the right to sue the driver who ran the stop sign for lost income and pain and suffering. But that lawsuit can take a long time, while the bills arrive every month. The gap between the crash and the settlement is exactly what income replacement was designed to bridge.

This is the shape of the risk the 2026 change creates. It is not that treatment disappears. It is that the everyday money that keeps a household afloat during recovery is now a choice, and a choice that is easy to skip.

How VC Lawyers can help

The 2026 accident benefits change made these claims more complicated, not less. Figuring out which benefits a person actually has now means reading the policy, checking what was purchased, confirming who is covered, and finding every insurer that might respond. That is difficult to do alone while you are trying to heal.

Our team handles accident benefit claims and injury lawsuits across Ontario. We read the fine print, deal with the insurer, meet the deadlines, and build the lawsuit against the at fault driver so that your recovery is as complete as the law allows. We work on a contingency fee basis, so there are no legal fees unless we win for you.

If you or a family member was hurt in a crash, or you simply want to understand what your policy now covers, contact VC Lawyers for a free consultation. You can also reach our personal injury team through our main injury page.

A final note. This article is general information about Ontario law, not legal advice. Every situation is different, and only a lawyer who reviews your policy and your facts can tell you exactly where you stand.