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Everything You Need to Know About Auto Reform

Starting July 1, 2026, Ontario is introducing the most significant changes to auto insurance in years to give you more choice and control. These reforms move away from a one-size-fits-all approach, allowing you to tailor your coverage to fit your unique life, budget, and needs.

At Strong Roots Insurance, we believe in protecting what matters most from the ground up. Whether you are a busy parent in Kitchener, a contractor in Cambridge, or a retiree in Stratford, these changes mean you no longer have to pay for benefits you may already have through work or private plans. We’re here to help you navigate these new options and ensure your protection has a solid foundation.

A woman and a child are smiling as they look out of the windows of their parked black car, secure in their travels. The woman is in the front seat, and the child sits joyfully in the back. With auto insurance peace of mind, they enjoy a day framed by a clear sky and lush greenery.

More Choice, More Control: You’re in the Driver’s Seat

Starting July 1, 2026, Ontario is making auto insurance more flexible. Some accident benefits that were previously included in every auto insurance policy will become optional, providing you with more flexibility and control over your coverage. At Strong Roots, we believe in protecting what matters most from the ground up. These reforms move away from a one-size-fits-all approach, allowing you to tailor your policy to fit your unique life, budget, and needs.

What are Statutory Accident Benefits?

Statutory Accident Benefits (SABS) provide financial support if you are injured in a car accident. These benefits are available regardless of who caused the accident and can cover things like medical treatment, rehabilitation and income if you can’t work because of your injuries.

What’s Staying the Same?

To ensure every driver has access to essential recovery support, Standard Medical, Rehabilitation, and Attendant Care benefits will continue to be included in all auto insurance policies. These benefits help essential recovery support after an accident.

You still have the option to purchase additional or increased benefits and coverages, such as supplementary medical, rehabilitation and attendant care, dependant care and indexation benefits.

What’s Becoming Optional?

The following auto insurance accident benefits will become optional:

Who is Covered?

Starting July 1, 2026, optional benefits under your policy will only apply to:

  1. The Named Insured (you).
  2. Your Spouse.
  3. Dependants of you or your spouse.
  4. Listed Drivers specified on your policy.

This means that some people, such as pedestrians, cyclists, and certain passengers who may have been covered in the past may no longer be eligible for accident benefits unless they are included in the categories listed above.

What this Means For You

If you’re an existing customer

Your current coverage will automatically continue unless you let us know you would like to make specific changes to your auto insurance policy. You will need to review and decide whether you would like to keep, add, or remove coverage.

If you’re a new customer

Starting July 1, 2026, new customers may choose which optional accident benefits they would like to purchase. Ask us which benefits are included in your quote. You may want to add optional benefits to your policy based on your needs.

If you’re a commercial customer or employee

Speak to us to learn more about how this change impacts you or your employees.

How to Prepare for July 1, 2026

At Strong Roots, we are your partners and neighbours. We want to ensure you have a solid foundation of protection without paying for things you don’t need.

Download the Self-Assessment Checklist

Use the SABS Self-Assessment Checklist to help decide which coverages fit your lifestyle.

  • Read the questions carefully regarding your work, family, and home life.
  • Tick the box if the answer is “yes” for you or those covered under your policy.
  • Consult the results: If you check a box, that specific benefit is worth considering.

Review Your Current Policy: Understand what you have today so you can make an informed choice for tomorrow. Without speaking to your broker, you may not realize how these changes could impact liability or key classifications like “impairment”. You may be exposed to situations where you are not covered.

Check Your Workplace Benefits: Avoid duplication, you may already have coverage through your workplace, private benefits plan, or life and health insurance providers.

Think About Your Lifestyle: Do you have kids? Are you self-employed? Your unique life dictates which “optional” benefits are actually “essential” for you.

We’re Here to Help

Insurance can be complex, but it doesn’t have to be. Whether you’re in Kitchener, Stratford, or London our brokers are ready to provide expert, jargon-free advice to help you navigate these reforms.

FAQ

General questions about SABS optionality changes

Starting July 1, 2026, Ontario is making changes to auto insurance to give drivers more choice and flexibility. Drivers will be able to choose benefits to fit their needs and budget. Medical, rehabilitation and attendant care benefits will remain mandatory to ensure everyone has access to essential recovery support. All other accident benefit coverages, such as income replacement, will become optional.

Medical, rehabilitation and attendant care benefits will remain mandatory to ensure everyone has access to essential recovery support.

To provide drivers with more choice and flexibility, all other accident benefits will be optional, including:

  • Income replacement: Helps replace income you may lose because of an auto accident.
  • Non-earner: If you are a student or unemployed and an auto accident impacts your daily activities, this coverage can provide financial support while you recover.
  • Caregiver benefits: This benefit covers caregiving expenses if you, or another person covered by your policy, are injured in an auto accident and can no longer provide care for a dependant. This may include a child, an aging parent, or another adult in your household who relies on you for daily care.
  • Lost educational expenses: If an auto accident keeps you from attending school or an education program, this benefit can help to cover the costs you have lost.
  • Expenses of visitors: Covers reasonable and necessary expenses for certain visitors of the insured person who visit you after an auto accident. These visitors could include a spouse, child, grandchild, parent, grandparent or sibling.
  • Housekeeping and home maintenance: Helps pay for housekeeping or home maintenance services if you or another person covered by your policy, are unable to perform these tasks because of auto accident-related injuries.
  • Damage to personal items: Helps cover the cost to repair or replace personal items damaged in an auto accident, such as clothing, prescription eyewear, and hearing aids.
  • Death benefits: Provides financial compensation to certain family members if you, or another covered person, dies as a result of an auto accident.
  • Funeral benefits: Helps cover the cost of some funeral expenses if you, or another covered person, die due to an auto accident.

Supplementary medical, rehabilitation and attendant care benefits, indexation and dependant care benefits will continue to be optional.

These changes are going to play an increasing role in providing adequate protection. Many individuals may choose to lower their coverage, leaving them exposed when involved in claims. We recommend no less than $3M in coverage.

Catastrophic and Non-Catastrophic Impairment is changing to “an impairment” on all policies regardless of renewal date. Individuals who do not make a change to their policy, and have not purchased optional accident benefits coverage, may be exposed to situations where they are not covered.

Every policyholder can add or remove optional accident benefits from their policy.

Starting July 1, 2026, optional benefits under your auto policy will only apply to:

  • The named insured
  • The spouse of the named insured
  • Dependants of the named insured and of the named insured’s spouse
  • Persons specified in the policy as drivers of the automobile

Some Ontarians already pay for benefits through their employer or private insurance plans. These reforms eliminate a one-size-fits-all approach, and consumers will no longer have to pay for benefits they may already have elsewhere or do not want to buy.

Starting July 1, 2026, you can tailor your auto insurance to fit your personal situation. That means you will not have to pay for benefits you do not need, and you can choose to add benefits that provide extra protection for you and your family.

Ontario is making changes to auto insurance that puts consumers in the driver’s seat – providing you with more choice and control over your coverage to fit your needs and budget. If you choose to remove benefits that have now become optional from your existing coverage, it may impact your premium.

Before deciding to remove or add optional benefits, you should take the following steps:

  • Review your current coverage (if you are an existing customer)
    • Know what benefits you already have today through your auto insurance policy.
  • Review your workplace or private benefits plan
    • You may already have coverage through your employer, private benefits plan, or life and health insurance providers.
  • Think about your needs
    • Consider which coverage is right for you and whether opting out is practical.
  • Speak to us
    • We can help explain your options in relation to your auto insurance coverage.

Make informed decisions; choose the benefits that best fit your needs and budget.

Before speaking with us, you should review your current auto insurance policy to better understand what coverage you currently have and think about your needs. Thoroughly review your workplace and private benefits plans to see what other coverage you may already have.

To help you get started, you can view or download our self-assessment checklist.

Yes, if you’re a renewing customer, all accident benefits except medical, rehabilitation, and attendant care will become optional. Your current coverage will automatically continue as is, unless you choose to remove or add optional benefits. You can review and update your coverage based on your needs and budget.

Customers who are purchasing auto insurance for the first time or who are starting a new policy on or after July 1, 2026, can choose which optional accident benefits they would like to purchase. Ask us which benefits are included in your quote. You may want to add optional benefits to your policy based on your needs.

You may need to change your optional accident benefits if your situation changes, such as starting a new job, having children, or taking on caregiving responsibilities. You can change your optional benefits at any time, but only the coverage in place at the time of an auto accident will apply to your claim. To update your coverage, contact us to review your options and make sure your policy reflects your current needs.

Yes, you can choose to remove or update your auto insurance coverage. Before deciding to remove or add coverage, review your current policy to understand what you’re covered for, think about your needs and thoroughly review other workplace or private plans to see if you’re covered elsewhere. Speak to us to explore your options and choose the benefits that best fit your needs and budget.

Please review your auto insurance policy and contact us to discuss making changes to your optional benefits prior to renewal.

If you are shopping for a new policy on or after July 1, 2026, you may choose which optional accident benefits you’d like to purchase. Ask us which benefits are included in your quote. You may want to add optional benefits to your policy based on your needs.

Speak to us to add the optional accident benefits to your auto insurance policy.

Yes, the changes to accident benefits optionality will impact all drivers and auto insurance policies in Ontario, including personal private passenger, commercial, motorcycle, snowmobile and all-terrain vehicle policies.

You may be covered for certain accident benefits coverage when renting a car. Remember to review your auto insurance policy and the rental contract to understand what you’re covered for.

As of July 1, 2026, optional accident benefits coverage will only apply to the named insured, their spouse, dependants of the named insured and of the named insured’s spouse and listed drivers. Passengers injured in an auto accident will not be covered for optional benefits unless they fall into one of these groups under an auto insurance policy that includes optional benefits. However, standard accident benefits will still apply to all passengers.

Standard accident benefits will still apply to uninsured pedestrians and cyclists. Optional accident benefits coverage will only apply to the named insured, their spouse, dependants of the named insured, the name insured’s spouse, and drivers listed in the policy. Pedestrians and cyclists injured in an auto accident will not be covered for optional benefits unless they fall into one of these groups under an auto insurance policy that includes optional benefits.

There is no impact to ongoing claims, the auto insurance coverage you had at the time of the accident applies to your claim.

If you’re injured in an auto accident, you may have coverage through both your auto insurance and your supplementary health insurance plan. Starting July 1, 2026, Ontario is making changes to ensure that auto insurance will pay first for medical or rehabilitation benefits (except for medication costs) for any injury sustained in an auto accident. This means your auto insurance provider will cover these costs before your workplace or private health plan, helping you preserve those benefits for other life events.