Ontario car insurance changed on July 1, 2026.
Ontario has moved to an “à la carte” auto insurance model, sold as choice. Most Statutory Accident Benefits are now optional rather than mandatory. Existing policies renew with the same accident benefits unless you agree to change them, but we strongly encourage you to talk with your broker about what coverage is right for you.
What stays mandatory
Only three benefits remain mandatory, with low limits:
- Medical benefits
- Rehabilitation benefits
- Attendant care benefits
What becomes optional
- Income Replacement Benefit, at three different levels
- Caregiver Benefit
- Housekeeping and Home Maintenance
- Dependent Care
- Indexation (inflation protection)
- Higher medical, rehabilitation and attendant care limits
This is a major shift, because these optional benefits are the ones that protect your income and your household if you are injured and cannot work.
The change that applies to everyone
Regardless of your renewal date, who is covered changed on July 1. Optional accident benefits now apply only to:
- The named insured on the policy
- The spouse of the named insured. Note that under the Insurance Act, common-law means three years under the same roof if you have no children together.
- Dependents of the named insured and spouse
- Persons listed in the policy as drivers of the insured automobile
“Strangers to the policy” are anyone who is not a dependent or listed driver: an adult living with you who is not listed, or a passenger without their own car insurance. They now receive only the mandatory medical, rehabilitation and attendant care benefits, even as a pedestrian or cyclist. They have no access to income replacement, death benefits, caregiver support or other optional coverages unless they hold their own policy with those benefits. You cannot buy an endorsement to cover them.
Think about carpooling to a children’s sports event, or driving a colleague who does not have their own car insurance. And if those passengers are your employees, they have lost income replacement accident benefits.
What to do
Talk to your broker about the scenarios that apply to you and your business. Read the full details, or try our self-assessment tool. The regulator’s summary is on the FSRA website.
HUNTERS International Insurance is at your service to talk through what this means for you and your business.