On July 1, 2026, Ontario's auto insurance underwent its biggest reform in decades. Most accident benefits that were previously included in every policy are now OPTIONAL. If you did not actively add them at renewal, you do not have them.
Here is what stayed mandatory:
- Medical, rehabilitation, and attendant care benefits (MIG: $3,500 | Non-catastrophic: $65,000 | Catastrophic: $1,000,000)
- First-payor rule: auto insurer pays first for all medical/rehab expenses (except prescriptions)
Here is what became optional:
- Income Replacement Benefit (IRB): up to $400/week (or higher optional limits)
- Non-Earner Benefit: $185/week for those not employed at time of accident
- Caregiver Benefit: $250/week first dependent + $50/week each additional
- Housekeeping & Home Maintenance: $100/week
- Death & Funeral Benefits: $25,000 spouse + $10,000 per dependent + $6,000 funeral
The coverage gap that catches people
Optional benefits only cover: named insured, spouse, dependants, and listed drivers. Passengers, pedestrians, and cyclists struck by your vehicle can only access MANDATORY benefits from your policy. They get medical treatment but zero income replacement unless they have their own auto policy.
The real savings vs real risk
FSRA estimates dropping all optional benefits saves ~$100/year ($8/month). But one serious accident without income replacement could cost you $20,000+/year in lost wages. The math strongly favours keeping optional benefits.
