Starting July 1, 2026, Ontario drivers will have access to a new way of buying auto insurance. The "à la carte" model, announced by the Financial Services Regulatory Authority of Ontario (FSRA), will allow drivers to pick and choose certain coverage options that were previously mandatory.
What Is À La Carte Auto Insurance?
The term "à la carte" comes from the restaurant industry, where customers can order individual dishes rather than a fixed meal. Applied to auto insurance, this means:
- Modular coverage: Certain benefits can be added or removed from your policy
- Personal choice: You decide which optional coverages suit your needs
- Flexible pricing: Your premium reflects the specific coverages you select
This is a departure from Ontario's traditional auto insurance model, where most accident benefits were bundled together and required regardless of individual circumstances.
Which Benefits Are Becoming Optional?
Under the new à la carte model, certain accident benefits will become optional. While FSRA has outlined the framework, specific details about which benefits can be opted out continue to be finalized. Generally, the optional benefits may include:
- Enhanced medical and rehabilitation benefits beyond the basic mandatory level
- Certain income replacement benefits for those with other coverage
- Non-earner benefits for those not working at the time of an accident
- Caregiver benefits depending on individual circumstances
Note: Final details are pending official FSRA confirmation. Check with your insurer for the most current information.
Potential for Lower Premiums
One of the main attractions of the à la carte model is the potential for lower insurance premiums. By opting out of benefits you don't need, you may be able to reduce your costs. This could be particularly beneficial for:
Drivers With Existing Coverage
If you have extended health benefits through your employer or a private plan, you may already have coverage that overlaps with some auto insurance accident benefits. The à la carte model lets you avoid paying for duplicate protection.
Low-Risk Drivers
Drivers who have been accident-free for years and have substantial savings or other financial resources may feel comfortable with reduced coverage.
Budget-Conscious Consumers
For those looking to reduce their monthly expenses, the ability to customize coverage provides more control over costs.
Important Considerations Before Opting Out
While the potential for savings is appealing, there are important factors to consider:
1. Gap in Coverage
If you opt out of certain accident benefits and are later injured in an accident, you may face significant out-of-pocket expenses. Auto accidents can result in long-term injuries requiring extensive medical care and rehabilitation.
2. Limits of Other Insurance
Even if you have health insurance through work, it may have limits that don't fully cover serious accident injuries. Understand exactly what your other coverage provides before opting out of auto insurance benefits.
3. Future Employment Changes
If you rely on employer health benefits to justify opting out of auto insurance coverage, consider what happens if you change jobs or lose your benefits.
4. Family Considerations
Your auto insurance coverage may protect passengers and family members. Opting out of certain benefits could affect their protection as well.
How to Make the Most of À La Carte Options
When the new system takes effect, follow these steps to make informed decisions:
- Inventory your existing coverage: List all health, disability, and accident benefits you have from other sources
- Understand the trade-offs: Know exactly what you're giving up if you opt out of any benefit
- Calculate your savings: Get quotes with and without optional benefits to see the actual premium difference
- Assess your risk tolerance: Consider your financial ability to handle unexpected expenses
- Review annually: Your circumstances may change, so revisit your coverage choices each year
The Bigger Picture
Ontario's move to à la carte auto insurance is part of broader efforts to modernize the province's insurance system and give consumers more choice. While it offers opportunities for savings, it also places more responsibility on drivers to understand their coverage needs.
Want to explore your options? Compare quotes and see how the 2026 changes could affect your auto insurance.