Major changes are coming to auto insurance benefits in Ontario on July 1, 2026. Drivers across the province should prepare for significant updates to their coverage, including adjustments to medical benefits, deductibles, and accident benefits. Here is what you need to know.
Key Changes to Auto Insurance Benefits
The Ontario government has announced a series of reforms aimed at reducing premiums while maintaining essential coverage. Starting July 1, the following changes will take effect:
- Medical and Rehabilitation Benefits: The limit for medical and rehabilitation benefits will be adjusted. For non-catastrophic injuries, the standard limit will be reduced from $65,000 to $50,000. For catastrophic injuries, the limit will remain at $1,000,000.
- Attendant Care Benefits: The attendant care benefit limit will be reduced from $36,000 to $30,000 for non-catastrophic injuries, while catastrophic injury limits stay at $1,000,000.
- Deductibles: A new optional deductible of $2,000 will be introduced for accident benefits, allowing drivers to lower their premiums if they choose a higher deductible.
- Income Replacement: The income replacement benefit will now be capped at $400 per week, down from $600 per week, for those with non-catastrophic injuries.
Impact on Drivers
These changes are designed to reduce insurance premiums by an estimated 5-10% on average. However, drivers who rely on higher benefit limits may need to purchase additional coverage through optional endorsements. The government emphasizes that catastrophic injury coverage remains robust to protect those with severe injuries.
Insurers will be required to provide clear information about the new benefit levels and optional coverage options. Drivers are encouraged to review their policies and discuss changes with their insurance providers to ensure they have adequate protection.
Background
The reforms follow a comprehensive review of Ontario's auto insurance system, which has faced rising costs and premium increases. The government aims to balance affordability with adequate protection for accident victims. Consumer groups have expressed mixed reactions, with some praising the potential savings and others concerned about reduced benefits for minor injuries.
For more details, visit the Financial Services Regulatory Authority of Ontario (FSRA) website or contact your insurance provider.
