With Ontario's auto insurance changes taking effect for policies renewing on or after July 1, 2026, now is the time to prepare. The new à la carte model will give you more choices about your coverage, but making the right decisions requires preparation. Here's your guide to getting ready.
Step 1: Review Your Current Coverage
The first step in preparing for the 2026 changes is understanding exactly what coverage you have now. Pull out your current auto insurance policy and review:
Your Accident Benefits
- Medical and rehabilitation limits: What's the maximum coverage for treatment after an accident?
- Income replacement: How much would you receive if you couldn't work?
- Attendant care: Coverage for assistance with daily activities after a serious injury
- Other benefits: Caregiver, death and funeral, and other coverages
Your Other Coverages
- Liability limits: How much protection do you have if you cause an accident?
- Collision and comprehensive: Coverage for your own vehicle
- Optional endorsements: Any additional coverages you've added
Step 2: Inventory Your Other Insurance
To make informed decisions about which auto insurance benefits to keep, you need to know what other coverage you have:
Employer Benefits
Review your workplace benefits package:
- Extended health coverage: What medical expenses are covered and to what limit?
- Short-term disability: Duration and percentage of income replaced
- Long-term disability: When it kicks in and how long it lasts
- Life insurance: Coverage amount for your dependents
Personal Insurance
Consider any private insurance you hold:
- Private disability insurance
- Critical illness insurance
- Personal health insurance
- Life insurance
Government Benefits
Understand what public programs may provide:
- OHIP coverage for medical treatment
- EI sickness benefits
- CPP disability benefits
- WSIB if injured at work
Step 3: Understand What's Mandatory vs. Optional
Not everything in your auto insurance policy is becoming optional. Understanding the difference is crucial:
Still Mandatory (Won't Change)
- Third-Party Liability: Minimum $200,000 (but you should carry much more)
- Basic Statutory Accident Benefits: A minimum level of accident benefits remains mandatory
- Direct Compensation - Property Damage: Coverage when you're not at fault
- Uninsured Automobile Coverage: Protection from uninsured drivers
Becoming Optional
Certain enhanced accident benefits above the basic mandatory level may become optional. These potentially include:
- Enhanced medical and rehabilitation coverage
- Enhanced income replacement benefits
- Non-earner benefits
- Caregiver benefits
Note: Final details are pending official FSRA confirmation.
Step 4: Questions to Ask Your Insurer
As your renewal date approaches in 2026, prepare these questions for your insurance provider:
About Coverage Options
- "Which specific accident benefits can I opt out of under the new rules?"
- "What are the basic mandatory benefit levels that I must keep?"
- "Can you explain exactly what I'd be giving up if I opt out of each benefit?"
About Costs
- "How much would my premium decrease if I opt out of [specific benefit]?"
- "Can you show me quotes with different combinations of optional benefits?"
- "Are there any multi-policy or other discounts that might be affected?"
About Claims
- "If I opt out and later have an accident, what costs would I be responsible for?"
- "How would my claim process differ with reduced benefits?"
- "Can I change my coverage back later if my situation changes?"
Step 5: Consider Your Personal Situation
The right coverage decision depends on your individual circumstances. Consider:
Your Health
- Any pre-existing conditions that could complicate injury recovery
- Family health history
- Current medications or treatments
Your Finances
- Emergency savings available
- Monthly budget flexibility
- Debt obligations
Your Family
- Number of dependents
- Spouse's income and benefits
- Children's ages and needs
Your Work
- Job security and stability
- Ability to work from home if injured
- Physical demands of your occupation
Step 6: Create Your Action Plan
Based on your review, create a plan for when your policy renewal arrives after July 1, 2026:
- Mark your calendar: Note when your policy renews and when to start reviewing options
- Document your other coverage: Keep a summary of all your insurance and benefits
- Set a budget: Decide how much you want to spend on auto insurance
- List your priorities: Rank which benefits are most important to you
- Plan to shop around: Get quotes from multiple insurers to compare options
Start preparing today. Get a quote to understand your current market rates and be ready for the 2026 changes.