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Effective 2026 — Action Required

Ontario Auto Insurance Reform: What's Actually Changing

Ontario's auto insurance system is undergoing its most significant structural change in decades. The reforms — effective for new and renewing policies in 2026 — restructure how accident benefits work, introduce optional benefit packages, and shift more coverage responsibility to individual policyholders.

If you haven't reviewed your auto policy with a broker this year, you may be driving with less protection than you think. This guide breaks down the key changes and what you should do before your next renewal.

Ontario Auto Insurance Reform 2026 — interactive guide

The Definition of "Who" Is Protected Has Been Narrowed

As of July 01, 2026, only the following people qualify for optional Accident Benefits under a policy:

check_circle Policyholder / Registered Owner / Business Owner
check_circle Their Spouse
check_circle Dependants (generally under 21 & in school)
check_circle Listed drivers only

Always consider who will be protected by your policy if they were hurt and couldn't work, or needed treatment and care following an auto-related accident.

Interactive Guide

See How the 2026 Reforms Touch Your Life.

Click the markers to explore how Ontario's Accident Benefits changes could affect you and your family after an auto-related accident.

Accident Benefits

Income Replacement

What's changing

The $400 maximum weekly benefit is no longer standard with all policies.

Why it matters

This change impacts anyone earning an income who suddenly cannot work following an auto accident. Higher weekly options to match your actual annual salary are recommended.

Talk to a broker before you elect arrow_forward

The Big Picture

Ontario's auto insurance framework is built around three main coverage categories: Third-Party Liability (what you owe to others if you cause an accident), Accident Benefits / SABS (your lost income, medical care and treatment no matter who was at fault for your auto-related injuries), and Physical Damage (the cost of repairs if your car is damaged by an insured incident).

The 2026 reforms focus almost entirely on the accident benefits side — specifically, the Statutory Accident Benefits Schedule (SABS). Injury-related expenses, historically included with every policy since the 1990s, are now itemized and optional. Many protections that were previously automatic now require an add-on election for new applications effective July 01, 2026.

medical_services

Medical & Rehab

Base limits of $65,000 (non-catastrophic) and $1 Million lifetime (catastrophic) — optional elections raise these to $1 Million and $2 Million.

work_off

Income Replacement

The $400/week minimum is no longer standard with every policy. Optional elections go up to $1,000/week.

shield_person

Who's Protected

Optional injury benefit eligibility is now limited to the policyholder, their spouse, dependants under 21 in school, and listed drivers.

warning

Important Note

These changes apply to policies renewing or starting July 01, 2026. When you renew, your current Accident Benefit coverage terms will not be reduced without your written consent. Do not assume you're affected until you've confirmed your renewal date with your broker.

SABS: Key Changes

The Statutory Accident Benefits Schedule sets minimum benefit standards all Ontario auto insurers must provide. Here's how the structure is changing under the 2026 reforms.

Definition of Insured Persons for Optional Benefits

As of July 01, 2026, only the following people have a right to claim Optional Injury Benefits if they're hurt in, on, or around an automobile: the policyholder / registered owner of the car or business, their spouse, dependants, and listed drivers on the policy.

Medical, Rehabilitation & Attendant Care

As of July 01, 2026, maximum limits are $65,000 for a non-catastrophic injury and $1 Million over a lifetime for a catastrophic injury. This coverage is meant to help those protected by your policy access the care needed to recover from an auto-related injury. The non-catastrophic limit can be increased to $1 Million, and the catastrophic limit can be increased to $2 Million.

Income Replacement Benefits

Weekly income replacement benefits have become optional coverage. The lowest option you can choose is $400/week. Anyone earning over $21,000/year should opt for a higher limit to insure their lost wages — common choices are $600, $800, or $1,000 per week.

Death & Funeral Benefits

There is no longer a standard limit paid to survivors to help with funeral costs and financial support following a loss of life. Survivor and funeral benefit amounts are updated under the new schedule, and dependant eligibility rules are clarified.

Optional Benefit Packages

Everyone's financial circumstances, household, and business needs are unique. Renewals effective July 01, 2026 and on will list each SABS option and its cost, so you have full transparency as a consumer. Your broker will review these options at your request — but the final decision is yours.

Base Schedule

Minimum Required

check Basic Medical, Rehabilitation & Attendant Care

All other coverages previously built into the SABS plan are now optional and must be selected or declined at renewal.

Enhanced Options

Optional Add-Ons

add_circle Increased Medical, Rehab & Attendant Care — up to $1M non-catastrophic / $2M catastrophic
add_circle Higher Income Replacement — up to $1,000/week
add_circle Caregiver & Dependant Care benefits
add_circle Death & Funeral limits
add_circle Indexation enhancements

McCAM's Perspective

Optional benefits cost less than most people expect — and the protection gap between base and enhanced coverage can be substantial in a serious accident. We'll walk you through the numbers at your renewal review and recommend based on your specific situation, not a one-size-fits-all script.

What To Do Before Your Renewal

The 2026 reforms make proactive policy review more important than ever. Here's what we recommend.

Know Your Renewal Date

The reforms apply at renewal. Confirm your renewal date so you're ready to make elections before the policy renews. Waiting until after renewal limits your options.

Review Your Current Coverage

Pull your current policy documents from MyMcCAM or ask your advisor to walk through them with you. Understand what you have now before comparing to the new framework.

Book a Renewal Consultation

Request a renewal review with your McCAM advisor before your next renewal date. We'll present the optional benefit packages, compare costs, and make a recommendation based on your household and risk profile.

Consider Your Household's Risk Profile

Households with self-employed individuals, caregivers, or high-income earners have more to lose under a reduced SABS schedule. Enhanced options may be especially important for these situations.