Auto insurance reform in Ontario
Starting July 1, 2026, Ontario will be making changes to how auto insurance works in the province.
Important things to know
- Most mandatory accident benefit options will become optional
- The optional benefits will cover only 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
- Auto insurance accident benefits will respond before your extended health care plans
- If you’re an existing policy holder and want to remove some of these accident benefits, you will need to opt out through either contacting us or using Online Services
- New policies will be able to choose which accident benefits they want to include
What’s happening with auto insurance in Ontario?
Starting July 1, 2026, auto insurance packages will include fewer mandatory accident benefits.
Most mandatory accident benefits will be optional
Medical, Rehabilitation and Attendant Care will stay mandatory. All other accident benefits will become optional.
| Accident benefit overview | Staying mandatory | Staying optional | Becoming optional |
|---|---|---|---|
| Medical, Rehabilitation and Attendant Care | X | ||
| Supplementary Medical, Rehabilitation and Attendant Care | X | ||
| Optional Catastrophic Impairment | X | ||
| Dependant Care | X | ||
| Indexation | X | ||
| Income replacement | X | ||
| Caregiver | X | ||
| Death and Funeral | X | ||
| Non-earner and lost educational expenses | X | ||
| Housekeeping and Home Maintenance, Expenses to visitors, and Damage to personal items | X |
Who is covered will change
Optional accident benefits will only cover:- The named insured
- The spouse of the named insured
- Dependants of the named insured and the named insured’s spouse
- Persons specified in the policy as listed drivers of the covered automobile(s)
Who pays first for a claim will change
Your auto insurance accident benefits will now respond before your extended health plan. The order of payment will be:- Ministry Programs:
- OHIP (Ontario Health insurance Plan)
- LHIN Home and Community Care (formerly CCAC)
- Your auto insurer under Statutory Accident Benefits for reasonable and necessary medical or rehabilitation claims (except medication expenses)
- Your personal plan (primary for medication) for other services not covered above
The above only applies to medical and rehabilitation costs, not disability coverage.
| Accident benefit overview | What’s covered | Coverage options |
|---|---|---|
| Medical, Rehabilitation and Attendant Care | Expenses for medical benefits, beyond OHIP and standard limits, up to $65,000 for non-catastrophic medical assessment, rehabilitation, and attendant care costs; $3500 for minor injuries; and $1 million for catastrophic injuries. |
| Accident benefit overview | What’s covered | Coverage options |
|---|---|---|
Supplementary Medical, Rehabilitation and Attendant Care Ideal for those who don’t feel the standard benefits provide enough coverage. |
Additional expenses for medical benefits, beyond OHIP and standard limits, such as physiotherapy or massage therapy. |
|
Dependant care Ideal for employed individuals who provide care for dependants. |
Costs associated with caring for dependants, such as a child, spouse, or aging parent, if you’re injured in an automobile accident. | |
Indexation Ideal for individuals who are concerned that certain benefits may not keep up with changes in the cost of living. |
This option ensures that your maximum limits are increased for certain benefits, including:
|
| Accident benefit overview | What’s covered | Coverage options | |
|---|---|---|---|
Income replacement Ideal for employed individuals without sufficient disability coverage. |
May replace up to 70% of your gross income. |
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Caregiver Ideal for insureds providing primary care for dependants. |
Caregiving expenses if you, or another person covered by your policy, can no longer provide care for a dependant.
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Death and Funeral Ideal for anyone who wants to leave behind financial assistance for their family. |
Funeral costs, and death benefits for certain persons, in case of a fatal automobile accident. |
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Non-earner and lost educational expenses Ideal for students and unemployed individuals. |
Includes:
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Housekeeping and Home Maintenance, Expenses of visitors, and Damage to personal items Ideal for individuals who want extra coverage for smaller expenses that can add up. |
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You can change your accident benefit elections through Online Services or by contacting us.
Things to think about before changing your policy
- Before opting out of any benefits, think about how your situation might change in the event of an accident; consider the needs of your spouse, dependants, and any other listed drivers on your policy
- Accident benefits are generally affordable; removing them, on average, results in nominal savings
- If you already have coverage for some accident benefits through work or elsewhere, review your plan or speak to your benefits advisor before changing your auto insurance coverage
- Check whether your existing coverage (like disability, critical illness, or health insurance plans) extends to automobile accidents before you opt out of accident benefits
- Consider how your life now compares to when your policy started; your coverage needs might have changed with new jobs, benefits plans, or insured individuals on your policy
© Co-operators General Insurance Company. This material is provided for informational purposes only. Please refer to your policy for applicable coverage details, limitations and exclusions.