July 31, 2026
Ontario drivers face one of the most significant changes to automobile insurance in years. As of July 1st, 2026, a host of statutory automobile insurance benefits became optional. While the reforms are intended to provide consumers with greater flexibility around insurance costs, they also require drivers to make important decisions about the level of protection they want if they sustain a serious personal injury in a motor vehicle accident.
At Leone Murray LLP, we’ve seen firsthand how devastating serious collisions can be. Catastrophic injuries can result in years of medical treatment, rehabilitation, lost income and ongoing care needs. In many cases, statutory accident benefits provide an essential source of financial support while injured individuals focus on their recovery.
That’s why these new changes offer an ideal opportunity to review your automobile insurance policy and ensure it continues to provide the protection you and your family may need.
What’s changing?
Ontario’s Statutory Accident Benefits Schedule (SABS) provides benefits to people injured in motor vehicle accidents, regardless of who caused the collision. These benefits can help pay for medical treatment, rehabilitation, attendant care and, depending on the coverage selected, income replacement and other financial supports.
Now, several accident benefits that were previously included automatically in every Ontario auto insurance policy have become optional. Core medical, rehabilitation and attendant care benefits remain mandatory, but a number of other important benefits may now be declined by policyholders if they choose. They include:
- Income replacement
- Non-earner
- Caregiver benefits
- Lost educational expenses
- Expenses of visitors
- Housekeeping and home maintenance
- Damage to personal items
- Death benefits
- Funeral benefits
The new framework allows motorists to decide whether certain accident benefits are worth retaining based on their own financial circumstances and appetite for risk.
Small savings today could have significant consequences later
For many households, reducing insurance premiums is understandably attractive. But it’s important to recognize what those savings may mean if you or a loved one suffers a life-changing injury.
The cost of rehabilitation following a serious collision can quickly become overwhelming. Recovery may involve physiotherapy, occupational therapy, psychological counselling, assistive devices, home modifications or ongoing personal care. In addition, an injured person may be unable to return to work for months, or perhaps much longer. While every case is different, the optional accident benefits becoming available under the new rules often represent valuable financial protection for what is, in many cases, a relatively modest additional premium.
Choosing to maintain these benefits could provide access to important income replacement and support services at a time when they’re needed most.
Don’t assume your existing policy is enough
Many drivers purchase automobile insurance and rarely revisit their coverage unless they buy a new vehicle or change insurers.
The July 1st changes create an excellent opportunity to review your policy with your insurance broker or advisor. Ask what benefits you currently have, which benefits are now optional, and what effect keeping—or removing—them would have if you were seriously injured.
Understanding these options before an accident occurs allows you to make informed decisions based on your family’s circumstances, employment situation and financial needs.
For many people, maintaining optional accident benefits may provide valuable peace of mind at a relatively small additional cost.
Why accident benefits matter
People often focus on whether they can sue the at-fault driver after a collision. While tort claims remain an important part of many serious personal injury cases, accident benefits serve a different purpose.
They provide immediate no-fault financial assistance regardless of who caused the accident. These benefits can begin helping injured individuals long before a lawsuit is resolved and may cover expenses that arise during the recovery process.
This financial support can be especially important during the first weeks and months following a catastrophic injury, when families are adjusting to new medical realities and significant uncertainty.
Without adequate accident benefits, injured individuals may find themselves relying more heavily on personal savings, employment benefits or family support while they recover.
The new rules also change who may receive optional accident benefits.
Beginning July 1st, optional benefits generally apply only to the named insured driver, their spouse, eligible dependents and any listed drivers on the policy. Passengers, pedestrians and cyclists who are not included within those categories may not have access to optional benefits under another person’s policy, although mandatory accident benefits continue to apply.
These changes make it even more important for individuals and families to understand how their own insurance policies protect them.
A conversation worth having
No one expects to be involved in a catastrophic motor vehicle accident. Yet every day, Ontario drivers experience collisions that permanently alter their lives.
Before deciding to reduce your insurance coverage, consider the potential cost of a serious injury—not just financially, but personally. The relatively modest premium required to retain optional accident benefits may prove invaluable if the unexpected happens. Nearly every day we work with injured clients who rely on accident benefits to cover basic costs, medical, rehabilitation and a host of other services they need to after major automobile accidents.
If you have questions about your insurance coverage, speak with your insurance professional before making any changes. If you or a loved one is seriously injured in a motor vehicle accident, obtaining experienced legal advice early can help you understand your rights, preserve important evidence and access every source of compensation available under Ontario law.
At Leone Murray LLP, we’re committed to helping injured Ontarians navigate the legal and insurance systems following serious motor vehicle accidents. While no one expects to need these protections, ensuring you have appropriate coverage before an accident occurs may be one of the most important financial decisions you make.
The Leone Murray LLP Team
If you’ve sustained a significant personal injury, know that the Leone Murray LLP team is here to provide expert legal guidance and support. Our compassionate team is dedicated to helping you manage the legal process and obtain the compensation you deserve. Contact us today for a free case assessment.
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Why choose Leone Murray LLP
Expertise: Our law firm specializes in personal injury law, which means we know the ins and outs of insurance, what you’re entitled to, and the next steps if you or your loved one is involved in a motor vehicle accident in Ontario.
Compassionate Care: We take a client-first approach, ensuring you receive both the legal expertise and emotional support you need during this difficult time.
No Upfront Fees: Some insurance providers may require you to take on additional costs related to medical assessments or specialist treatments. We pay these upfront fees on your behalf while fighting for your rights, saving that added stress so you can focus on your complete recovery.
