Ontario Auto Insurance Changes Coming July 1, 2026: What You Need to Know

Beginning July 1, 2026, Ontario is making changes to auto insurance to give drivers more choice and flexibility. Drivers will be able to choose benefits to fit their needs.

How is My Auto Insurance Changing?

The biggest change is that several accident benefits previously included with every Ontario auto insurance policy will become optional. The province’s goal is to provide consumers with greater choice by allowing them to purchase coverage that better aligns with their individual circumstances.

• Every Ontario auto insurance policy will continue to include standard medical benefits, rehabilitation benefits, and attendant Care benefits. These benefits help cover recovery costs following an automobile accident, regardless of who was at fault.
• Beginning July 1, policyholders may choose whether to keep or decline benefits such as income replacement benefits, non-earner benefits, caregiver benefits, lost educational expenses, housekeeping & home maintenance, damage to personal items, visitor expenses, death benefits, and funeral benefits.

Newly optional benefits under your auto policy will only apply to the named insured, the spouse of the named insured, dependants of the named insured and of the named insured’s spouse, and persons specified in the policy as drivers of the automobile.

Should I Make Changes To My Policy?

There isn’t a one-size-fits-all answer, which is exactly why these changes were introduced. The optional benefits below are designed to help you tailor your coverage based on your unique needs and existing insurance. Review each option carefully, then speak with your Regal Insurance broker to determine the coverage that’s right for you.

• Income replacement: Helps replace income you or another covered person may lose because of an auto accident.
• Non-earner: If you or another covered person is a student or unemployed and an auto accident keeps you from leading a normal life, this benefit can provide financial support while you recover.
• Caregiver benefits: Helps cover caregiving expenses if you or another covered person is injured in an auto accident and can no longer provide care for a household member, such as a child or aging parent, who needs it.
• Lost educational expenses: If an auto accident keeps you or another covered person from attending school or an education program, this benefit can help cover the costs you have lost.
• Expenses of visitors: Helps cover reasonable and necessary expenses of visitors, such as a sibling or parents, if you or another covered person is injured in an auto accident.
• Housekeeping and home maintenance: Helps cover costs if you or another covered person is unable to perform the housekeeping and home maintenance tasks normally done before an auto accident.
• Damage to personal items: Helps cover the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids, etc.) damaged in an auto accident.
• Death benefits: Compensates some family members if you or another covered person die due to an auto accident.
• Funeral benefits: Helps cover some funeral costs if you or another covered person die due to an auto accident.

Supplementary medical, rehabilitation and attendant care benefits, dependant care benefits, and indexation will continue to be optional.

Frequently Asked Questions

Will my existing auto insurance policy change automatically?
No. Your policy will automatically renew with your current accident benefit coverage and limits unless you choose to make changes with your insurer. However, beginning July 1, 2026, the rules around who is covered by optional accident benefits will change regardless of your renewal date.

Who can purchase or modify optional accident benefits?
Any Ontario auto insurance policyholder can add, remove or adjust optional accident benefits. Whether you’re renewing an existing policy or purchasing a new one, your broker can help you choose the coverage that’s right for your needs.

Why would I choose to add or remove optional benefits?
These changes are designed to give you greater flexibility. Some drivers already have similar protection through an employer or private insurance plan and may decide they don’t need duplicate coverage. Others may choose to keep or add optional benefits for additional financial protection. The right choice depends on your personal circumstances.

Will removing optional benefits reduce my insurance premium?
It may. If you choose to remove benefits that are now optional, your premium could change. Your Regal Insurance broker can explain how different coverage options may affect both your protection and your premium.

How do I know which optional benefits are right for me?
Before making changes, review your current auto insurance policy, consider any workplace or private health and disability benefits you already have, and think about your family’s financial needs should you be injured in an accident. Your broker can help identify any gaps in coverage and recommend the most appropriate options.

Can I change my optional benefits after my policy is in place?
Yes. You can update your optional accident benefits if your circumstances change, such as starting a new job, having children or gaining access to additional workplace benefits. Keep in mind that only the coverage in place at the time of an accident will apply to your claim.

Will these changes affect all Ontario drivers?
Yes. The new accident benefit rules apply to all Ontario auto insurance policies, including personal vehicles, commercial vehicles, motorcycles, snowmobiles and all-terrain vehicles.

Are passengers, pedestrians and cyclists still covered?
Yes, standard accident benefits will continue to apply to passengers, uninsured pedestrians and cyclists. However, optional accident benefits will only apply to the named insured, their spouse, eligible dependants and any listed drivers if those coverages have been purchased.

What if I already have an ongoing accident claim?
There is no impact to existing claims. Your claim will continue to be handled based on the coverage that was in place at the time of your accident.

If I’m injured in an accident, does my auto insurance or workplace health plan pay first?
Starting July 1, 2026, your auto insurance will generally pay first for eligible medical and rehabilitation expenses (excluding medication costs) related to an automobile accident. This helps preserve your workplace or private health benefits for other healthcare needs.

If you have questions, please contact Regal Insurance Brokers at 1-800 516-6276. We‘re here to help you understand your coverage and make informed choices.