From Mandatory to Optional Accident Benefits
Effective July 1, 2026, auto insurance policies will no longer have the standard Accident Benefits we see today. While mandatory medical, rehabilitation, and attendant care benefits will be maintained, insured Ontarians will have the option to purchase the following – previously standard – benefits:
Non-earner benefits
Income replacement benefits
Caregiver benefits
Housekeeping benefits
Lost Educational expenses
Visitors’ expenses
Clothing damage
Funeral benefits
Death benefits
These amendments to the Accident Benefits scheme are being presented by the Ontario Government as “enabling greater consumer choice” that will allow drivers to decide what coverages are important to them and their families. Ontarians will need to pay extra if they want coverage for the above-listed expenses.
There is a real concern among personal injury lawyers and insurance brokers that an interest in saving money on premiums, which is a certainty, will be favoured over an interest in, for example, receiving money for lost wages in the event of an injury, which sounds remote and speculative. While individuals with access to disability benefits through a private insurance policy may get by without purchasing soon-to-be optional income replacement benefits, those without access to disability insurance policies will certainly be affected. Financial pressures that would otherwise be at least partially alleviated by income replacement benefits may encourage insureds to return to work against medical advice or even settle improvidently.
In light of these risks, it is important to speak to your insurance broker about the coming changes and to seriously consider what the consequences may be if you find yourself injured from a motor vehicle accident and do not have optional benefits available to you.
