On July 1, 2026, Ontario will implement a significant structural change to the province’s standard automobile insurance policy. The Statutory Accident Benefits Schedule (SABS), O. Reg. 34/10, (s. 2(1.0.1)), enacted through O. Reg. 383/24, is meant to transform how accident benefits function within Ontario’s no-fault system.
Policies issued or renewed after that date will no longer include the many benefits that have long been included automatically; they will now be optional coverage. Under the new framework, attorneys and consumers alike will need to be prepared to attain the coverage they require.
The Core Policy Change: From Automatic to Optional Benefits
On July 1, 2026, only a narrow group of benefits will remain mandatory under Ontario auto policies: Medical, Rehabilitation and Attendant care benefits.
Many other benefits that injured people often rely on will now be optional add-ons that must be purchased directly. The following supports will only be available if the policyholder purchases them. This includes, but is not limited to:
- Housekeeping
- Caregiver benefits
- Non-earner benefits
- Death and funeral benefits
- Home maintenance benefit
- Income replacement benefits
Who is Affected?
Eligibility for optional benefits may become more limited. Coverage will extend only to the named insured, including their spouse, dependents and drivers specifically listed on the policy.
Individuals accessing accident benefits through the no-fault system, without their own policy or listed as a driver, may be unable to access certain benefits. Those most vulnerable include: pedestrians, cyclists and passengers.
This shifts Ontario’s accident benefits from a broad social safety net to one more aligned with insurance policies.
A Positive Reform: The “First Payer” Rule
One improvement of this standard auto insurance policy change is the introduction of a “first payer” rule for rehabilitation and medical benefits.
Currently, injured victims often exhaust private health insurance or workplace benefits before accessing accident benefits. This can delay access to treatment and create administrative confusion among insurers, health providers and claimants.
After the law is enacted, auto insurance will become the primary payer of mandatory medical and rehabilitation benefits after an accident. Victims will no longer need to exhaust private health plans first. This change should simplify the claims process and help ensure quicker access to treatment while preserving private health coverage for non-accident-related care.
The Litigation Ripple Effect: Fewer Benefits, More Tort Claims
The reform goes on to introduce the option of earlier compensation, which will reshape litigation in Ontario. Ontarians who opt out of optional benefits may have fewer immediate financial supports, which could lead to:
- Losses that were previously partially covered by accident benefits may need to be pursued through tort claims against at-fault drivers.
- Increasing financial pressure for victims with serious injuries that prevent them from returning to work or require benefits such as caregiver or housekeeping support.
These shifts may place significant financial hurdles for Canadians waiting for a case to resolve. This also requires a greater focus on litigation, with careful documentation of income loss, future care costs, and other economic damages in civil claims.
Technology and the Next Phase of Litigation
While greater consumer choice may reduce premiums for some drivers, it could also shift more responsibility onto policyholders. For those who find themselves in an accident without key benefits, the risks can be high.
For any Canadian, complex litigation requires proving the full extent of damages when accident benefits are no longer available. This requires detailed documentation and support from an experienced personal injury lawyer when litigation is necessary to obtain fair compensation.
This article is intended for general information purposes only and does not constitute legal advice.
