Starting July 1, 2026, Ontario drivers will have the choice to opt out of certain accident benefits that were previously mandatory. This guide explains which benefits are becoming optional, the implications of opting out, and who should consider keeping full coverage.
Understanding Ontario's Accident Benefits
Before diving into what's becoming optional, it's important to understand what accident benefits are. In Ontario, your auto insurance policy includes Statutory Accident Benefits (SABs), which provide coverage if you're injured in an auto accident, regardless of who was at fault.
These benefits can include:
- Medical and rehabilitation expenses
- Income replacement if you can't work
- Attendant care for serious injuries
- Caregiver benefits
- Death and funeral benefits
- Non-earner benefits
Which Benefits May Become Optional?
Under FSRA's reforms, certain benefits above the basic mandatory level may become optional. While final details are subject to regulatory confirmation, the following categories are expected to allow opt-out options:
Enhanced Medical and Rehabilitation Benefits
Currently, there are standard benefit levels for medical and rehabilitation coverage. Drivers may be able to opt out of enhanced levels while retaining basic coverage.
Income Replacement Benefits
For drivers who have disability insurance through their employer or privately, the optional income replacement benefits through auto insurance may be redundant.
Non-Earner Benefits
These benefits are for people who aren't working at the time of an accident (such as students, retirees, or stay-at-home parents). Those with other financial resources may consider opting out.
Caregiver Benefits
Provides payment if an injured person can no longer care for dependents. This may become optional for those without dependents or with alternative arrangements.
Implications of Opting Out
Choosing to opt out of certain benefits has real consequences. Here's what you need to understand:
Financial Risk
If you're injured in an accident and don't have the coverage you opted out of, you'll be responsible for those costs yourself. Serious auto accidents can result in:
- Hundreds of thousands of dollars in medical expenses
- Years of rehabilitation costs
- Long-term income loss
- Need for ongoing care and assistance
Limited Recourse
Ontario's no-fault auto insurance system limits your ability to sue for certain damages. If you've opted out of benefits, you may have limited options for recovering costs.
Impact on Family
Your accident benefits may also cover family members and passengers. Opting out could reduce their protection as well.
Who Should Keep Full Coverage?
Not everyone should opt out of coverage just to save money. Consider keeping full benefits if you:
Don't Have Alternative Coverage
If you don't have extended health benefits, disability insurance, or substantial savings, maintaining full accident benefits provides essential protection.
Have Dependents
If others rely on your income or care, full coverage ensures they're protected if you're seriously injured.
Have Pre-Existing Conditions
Some health conditions may limit your ability to obtain coverage elsewhere or could be complicated by an auto accident injury.
Work in High-Risk Occupations
If your job involves significant driving or other accident risks, more comprehensive coverage may be prudent.
Are Risk-Averse
If the thought of potentially facing major expenses without insurance coverage causes concern, the peace of mind from full coverage may be worth the premium.
Who Might Consider Opting Out?
Conversely, opting out may make sense if you:
- Have comprehensive employer benefits: Including extended health and disability coverage
- Have substantial personal savings: To cover potential out-of-pocket costs
- Have no dependents: And limited exposure if unable to earn income temporarily
- Have private disability insurance: That would cover income loss from any cause
Making an Informed Decision
Before making any changes to your coverage, take these steps:
- Review your existing benefits: Understand exactly what coverage you have from all sources
- Calculate the premium difference: Know how much you'd actually save by opting out
- Consider worst-case scenarios: Think about how you'd manage serious injury costs
- Consult with professionals: Talk to your insurance broker, financial advisor, or lawyer
- Read the fine print: Understand exactly what you're giving up
Need help understanding your options? Get a quote and speak with an insurance expert about the 2026 changes.