MyChoice quote data shows the potential savings are modest compared with the financial protection drivers may surrender after a serious collision
Ontario drivers looking to reduce their car insurance premiums can now remove several accident benefits that were previously included as part of the province’s standard auto insurance package. However, early post-reform pricing data suggests the savings available from removing these benefits are relatively modest.
To understand how Ontario’s new accident-benefit choices affect premiums, our team at MyChoice, a leading insurtech and insurance comparison website in Canada, analyzed more than 1,000 real auto insurance quotes generated after the reforms took effect on July 1, 2026.
For consistency, we focused on quotes reflecting a common driver profile: a 35-year-old married individual with a clean driving record and continuous insurance coverage. The analysis included several of Ontario’s most commonly insured vehicles, including the Honda Civic, Toyota Corolla, Mazda CX-5, Ford Escape, Honda Accord and Chevrolet Equinox.
The trade-off is important. Drivers are not receiving a lower price for the same insurance policy. In exchange for the savings, they are giving up no-fault benefits that can help replace lost employment income, pay for household assistance, support unpaid caregivers and cover certain family expenses after a serious collision.
Key Findings from the Study
- Declining all the accident benefits newly made optional on July 1 saved the standard Ontario driver approximately $106 per year.
- The average potential saving was $8.83 per month, or approximately 29 cents per day.
- The newly optional benefits represented approximately 5% of the standard driver’s $2,132 annual premium.
- Income replacement was the largest newly optional component, costing approximately $47 per year.
- Housekeeping and home-maintenance coverage cost approximately $36 per year.
- The complete optional accident-benefit package cost approximately $301, but nearly two-thirds of that amount came from benefits or increases that were already optional before July 1.
- Existing policies renewing on or after July 1 retain their previously selected benefits and limits unless the named insured and insurer agree in writing to remove or change them.
- The newly optional benefits generally cover only the named insured, their spouse, their dependants and drivers listed on the policy.
Breakdown of Premium & Limits
The largest premium in the optional benefits package is for income replacement and housekeeping coverage. Several of the remaining benefits cost approximately $10 per year or less.
| Accident benefit | Average annual premium | Limit selected in analyzed quotes |
|---|---|---|
| Income Replacement Benefit | $47 | $400/week |
| Non-Earner Benefit | $8 | $185/week |
| Caregiver Benefit | $10 | $250/week for the first dependant |
| Housekeeping and Home Maintenance | $36 | $100/week |
| Lost Educational Expenses | ~ $1 | $15,000 |
| Expenses of Visitors | ~ $1 | Helps cover reasonable expenses incurred by eligible relatives or household members who visit an injured person during treatment or recovery. |
| Damage to Personal Items | ~ $1 | Helps pay to repair or replace clothing, prescription glasses, dentures, hearing aids, prostheses and certain medical or dental devices damaged in the accident. |
| Death Benefit | ~ $1 | $25,000 spouse benefit |
| Funeral Benefit | ~ $1 | $6,000 |
| Coverage Total: | $106 |
Individual premiums vary by insurer, municipality, vehicle, driving history and policy structure. Figures have been rounded to the nearest dollar.
For a detailed review of every benefit and what it covers, visit our Ontario accident benefits guide.
Optional Does Not Necessarily Mean Unnecessary
Ontario’s reforms were designed to give drivers greater flexibility over their coverage and premium. However, making a benefit optional does not mean the benefit has no value.
As MyChoice CEO, Aren Mirzaian, explains: “Ontario drivers are understandably looking for ways to reduce their insurance costs, but the decision should be based on more than the word ‘optional.’ Our data shows that removing the newly optional accident benefits does not yield meaningful savings. Drivers need to compare that with the income, caregiving and household expenses they may have to cover themselves after a serious accident.”
The Insurance Brokers Association of Ontario has similarly estimated that declining all newly optional benefits will generally save drivers less than $10 per month. The organization warns that the resulting financial exposure following a serious accident can be substantially greater than the premium saving.
Brokers have also reported that the reform is making customer consultations longer and more complex. Consumers may incorrectly believe they must pay extra to retain their existing benefits, when existing policyholders generally keep their current selections unless they agree to change them.
Industry Concerns About Underinsurance
The emerging industry position is not that every driver should automatically purchase every optional benefit.
Ontario’s reforms give drivers more choice over their insurance policies. They also give consumers more responsibility for understanding what their insurer will no longer pay when they select the lowest available premium.
The broader concern is that drivers may remove coverage based only on the immediate premium reduction without understanding the expenses they would be responsible for following a serious injury.
Claims professionals and insurance industry representatives have warned that the reforms could contribute to coverage gaps when consumers select the lowest available price without considering lost income, household expenses and family responsibilities.
There are also legal implications for brokers and insurers.
After a serious claim, disputes may focus on what the consumer was told, what questions were asked about their circumstances and whether the decision to remove coverage was properly documented.
The Reform May Shift Insurance Costs Rather Than Eliminate Them
Removing optional accident benefits might not produce an equivalent reduction in Ontario’s overall insurance costs.
An analysis done by Oliver Wyman, an international management consulting firm, suggests some of the reduction in accident-benefit claims is expected to be offset by:
- Higher mandatory medical and rehabilitation costs
- Increased bodily-injury liability claims
- Potential legal claims against at-fault drivers
At an assumed 80% optional-benefit take-up rate, Oliver Wyman estimated an $11.36 reduction in the required average premium from drivers declining coverage. That reduction was offset by an estimated $9.38 shift to bodily-injury coverage and a $9.07 increase related to the new medical and rehabilitation payment priority. Overall, the model estimated a 0.28% increase in the required average premium.
These figures are actuarial projections rather than observed post-reform claims results. However, they suggest that the reforms may change where certain automobile-injury costs are paid rather than eliminating the underlying costs.
For accidents occurring in Ontario on or after July 1, 2026, automobile insurers generally pay eligible medical and rehabilitation expenses after OHIP but before supplementary health insurance plans. Medication expenses are excluded from this new payment-priority rule.
Drivers who decline optional benefits may also need to rely more heavily on workplace disability coverage, private insurance or personal savings. In cases involving an at-fault driver, some injured people may seek compensation through a bodily-injury claim or lawsuit, although the eventual scale of any increase in litigation remains unknown.
How Should Ontario Drivers Review Their Coverage?
Drivers can start by reviewing FSRA’s official Self-Assessment Checklist for Optional Accident Benefits, which outlines the income, caregiving and family-protection questions consumers should consider before changing their coverage.
In a nutshell, you should be prepared to ask yourself the following questions:
- What would replace my income if I could not work for several months?
- Does my workplace disability plan cover injuries from a car accident?
- Who would handle childcare, caregiving, cleaning or home maintenance if I were injured?
- Could my household manage unexpected expenses using savings?
- Do I have enough life insurance and funeral coverage?
- Could I afford to lose prepaid tuition or replace damaged glasses, hearing aids or medical devices?
- Are all regular drivers properly listed on my policy?
Study Limitations
This analysis is based on insurance quotes rather than bound policies or completed claims.
Premiums vary by insurer, municipality, driver history, vehicle, annual mileage, household composition, selected limits, discounts and other rating variables.
The standardized driver profile was used to allow consistent comparisons. It does not represent the circumstances of every Ontario driver.
The study reflects pricing during the first month of Ontario’s new accident-benefit system. Insurers may adjust their pricing and product structures as more policies are issued and more post-reform claims data becomes available.
The study measures the premium reduction associated with declining coverage. It does not estimate the probability that an individual driver will make a claim or the amount payable under a particular claim.