Ontario drivers pay some of the highest auto insurance premiums in Canada. Changes introduced in July 2026 now affect how Ontario auto insurance is structured.
To write this article, our team reviewed FSRA’s July 2026 accident-benefit guidance, insurer filing specifications, updated forms and communications toolkit.
What Changed To Ontario Accident Benefits In July 2026?
Ontario has long required all drivers to purchase statutory accident benefits as part of their auto insurance policy. Accident benefits provide financial support to Ontarians injured in auto accidents. You can use benefits for medical care, income replacement, attendant care and more.
Under the current rules, medical, rehabilitation and attendant-care benefits remain mandatory. All other accident benefits are optional, including income replacement, caregiver, non-earner, death and funeral benefits.
Read More: A Guide to How Accident Benefits Work After July 2026 Reform
New policies issued and existing policies renewed or changed on or after July 1, 2026, are subject to these changes. If your existing policy renews after that date, your previous benefits continue as optional benefits unless you agree in writing to decline or change them.
Before your next renewal, make sure you understand your existing coverage and decide whether declining any optional benefits is right for you.
Why Ontario Is Making These Changes
Ontario’s Financial Services Regulatory Authority (FSRA) says the goal of making certain accident benefits optional is “promoting consumer choice and affordability.” Drivers may save money by declining optional benefits.
FSRA released filing specifications outlining how insurers must update their systems, cost benchmarks and rating factors.
What Are The Advantages Of Optional Accident Benefits?
While more flexibility sounds good, it comes with trade-offs.
Potentially Lower Premiums
If you remove benefits you don’t think you’ll need, your insurance costs could go down.
More Tailored Protection
Drivers can choose optional benefits that reflect their income, employment benefits and family responsibilities, subject to the policy options available.
What Are Some Of The Risks Of The New Reform?
Less Automatic Protection
Your policy will provide less protection if you decline optional benefits.
Risk Of Being Underinsured
In a serious accident, lost income and other expenses can add up quickly.
More Homework For Consumers
You’ll need to understand what each benefit covers before deciding whether to decline it.
Changes To Forms And Communications
FSRA worked with the industry to develop a communications toolkit to help insurers, brokers and agents explain the changes.
The Ontario Application for Automobile Insurance and Certificate of Automobile Insurance have been amended. A new form, OPCF 47R, records which optional benefits have been purchased or declined and explains the order-of-payment rules.
Things You Should Do Before Renewal
Take time to understand what accident-benefit coverage you currently have before renewing your policy.
Some drivers may decide to decline certain benefits, particularly if they have access to other coverage through work. Others may decide to keep them. Dropping optional accident benefits could leave you with considerable expenses after a serious accident.
1. Confirm What Coverage Carries Over
If an existing policy renews on or after July 1, 2026, the previous benefits continue unless you agree in writing to decline them or change the amount payable.
2. Review Your Current Coverage
Review your policy’s accident-benefits section and note the limits. Which benefits do you currently have, and how much coverage do they include? Knowing what you have now will make it easier to decide what to keep or adjust.
3. Consider Your Personal Situation
Do you have disability or life insurance through work? Do you have dependants who rely on your income? Your answers can help you decide which optional benefits make sense for you.
4. Talk To Your Broker Or Insurer Early
Your broker or insurer can explain the forms and available options before your renewal date.