Starting today, July 1, Ontario’s auto insurance system shifts to give drivers more choice over their coverage, as nine accident benefits become optional rather than automatically included in every policy.
The Financial Services Regulatory Authority of Ontario (FSRA) confirmed that only three benefits remain mandatory: medical care, rehabilitation, and attendant care coverage. All other accident benefits—income replacement, non-earner, caregiver, housekeeping and home maintenance, death, funeral, lost educational expenses, expenses of visitors, and damage to personal items—are now optional, allowing consumers to customize their policies to fit their needs and budgets.
The shift represents a major overhaul of Ontario’s statutory accident benefits system, which has been in place since 1990. The change comes after a 2022 report by Ontario’s auditor general found that Ontarians were paying the highest auto insurance rates in the country. Doug Ford’s 2022 election campaign promised reforms to give consumers more control over their insurance choices.
What Drivers Should Know
For new policies and policy renewals starting today, drivers will need to actively choose which optional benefits to include. Those with existing policies will keep their current coverage unless they make changes during renewal or through a request to their broker.
The potential savings are modest but real. Lance Miller, an insurance broker and CEO of Surex Insurance, told CBC that the average customer could save $100–200 annually by selecting only the most basic coverage. However, he cautioned that the savings may not justify the risk. “If you opt out of funeral expenses, maybe that is going to be a $30–50 charge annually,” Miller said, “but if there’s a funeral, those cost tens of thousands of dollars.”
A critical shift affects who is covered under optional benefits. Starting today, optional coverage applies only to the named insured, their spouse, and their dependents. Passengers, cyclists, pedestrians, and other non-drivers injured in an accident will only be entitled to the mandatory medical, rehabilitation, and attendant care benefits—not any optional coverage the driver may have purchased. David Shellnutt, known as The Biking Lawyer, expressed concern about uninsured pedestrians and cyclists in Ontario who don’t have their own auto insurance. “Many people don’t drive in major cities across Ontario and we don’t have family members that do either,” he said. “The ramifications of this, versus the paltry savings to taxpayers, is really distressing.”
Insurance experts recommend that before cutting coverage to lower premiums, drivers should shop around with different insurers. Daniel Ivans, an insurance expert for rates.ca, noted that vehicle thefts and climate change have pushed auto insurance costs higher over the past decade. “It’s a freedom that we have, but usually reducing coverage is not the best way to get prices down,” he said. “Often the best way to reduce premiums isn’t to cut coverage, it’s to shop.”
Sources
- Financial Services Regulatory Authority of Ontario (FSRA) — confirmed mandatory and optional benefits structure effective July 1, 2026
- CBC News — reported on the changes, consumer savings potential, and expert commentary from insurance brokers and The Biking Lawyer
- Insurance Bureau of Canada — confirmed the optional benefits framework and policy changes
- Chubb Insurance — detailed coverage scope for optional benefits and affected parties
