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Ontario’s automobile accident-benefits system changed significantly on July 1, 2026. Medical, rehabilitation and attendant-care benefits remain mandatory, while most other Statutory Accident Benefits — including income replacement, non-earner, caregiver and housekeeping benefits — are now optional.
For Ontario drivers, the practical result is that accident-benefit coverage can differ substantially from one policy to another. Understanding what your policy actually includes is now more important than relying on an older list of “standard” accident benefits.
What Changed to Ontario SABS on July 1, 2026?
Ontario Regulation 383/24 amended the Statutory Accident Benefits Schedule, commonly called the SABS.
For automobile insurance policies entered into or renewed on or after July 1, 2026, benefits contained in Parts II, IV, V and VI of the SABS are offered as optional benefits.
The principal benefits that remain mandatory are:
- medical benefits;
- rehabilitation benefits; and
- attendant-care benefits.
Other accident benefits generally must be selected as optional coverage.
Important: The July 1, 2026 reforms do not mean that everyone automatically lost all previously held optional benefits on July 1. Ontario’s transition rules are particularly important for existing policies and renewals.
Which Accident Benefits Are Optional After July 1, 2026?
According to the current SABS and the Financial Services Regulatory Authority of Ontario (FSRA), optional accident benefits can include:
- income replacement benefits;
- non-earner benefits;
- caregiver benefits;
- lost educational expenses;
- expenses of visitors;
- housekeeping and home-maintenance expenses;
- damage to certain personal items;
- death benefits;
- funeral benefits;
- dependant-care benefits; and
- indexation benefits.
Insurers may also offer additional approved options, and coverage limits can differ depending on the benefit and insurer.
The actual certificate of insurance, policy and endorsements should therefore be reviewed rather than assuming that a particular benefit is available.
Income Replacement Benefits Are Now Optional
One of the most significant July 2026 changes concerns Income Replacement Benefits (IRBs).
Income replacement coverage is no longer automatically included as mandatory SABS coverage for applicable policies. It must instead be available as optional coverage.
Where income replacement coverage has been purchased, the standard benefit calculation continues to operate under the SABS. FSRA describes the standard option as generally providing 70% of gross income up to $400 per week, with options to increase the weekly maximum to $600, $800 or $1,000.
Why this matters: Employees, self-employed workers, contractors and other earners should not assume income replacement is included simply because they have an Ontario automobile policy. The policy and optional-benefit selections need to be checked.
Eligibility for an IRB after an accident also depends on the requirements of the SABS. Buying coverage does not automatically establish entitlement to payment after every accident.
Existing Policies and Renewals: The Transition Rule Matters
This is one of the most important parts of the 2026 reform.
Where a motor vehicle liability policy is renewed on or after July 1, 2026, certain benefits that existed under the policy immediately before July 1 are generally deemed to continue as optional benefits at the amounts previously payable unless the named insured and insurer agree in writing that the insured:
- declines a benefit; or
- changes the amount payable for a benefit.
Ontario law also allows a named insured and insurer to agree in writing to modify the applicable optional benefits on a policy that was entered into before July 1, 2026.
Do not assume your coverage changed to zero simply because your policy renewed after July 1, 2026. Review the renewal documents, endorsements and benefit selections to determine what actually applies to your policy.
Who Is Covered by the New Optional Accident Benefits?
The reforms also changed who may rely on optional accident benefits.
Under the current SABS, the optional benefits covered by the new framework are generally applicable only to:
- the named insured;
- the named insured’s spouse;
- dependants of the named insured or spouse; and
- people specified in the policy as drivers of the insured automobile.
This makes accurate policy information increasingly important, particularly where multiple family members or drivers use the same vehicle.
Caregiver and Housekeeping Benefits Changed Significantly
Caregiver and housekeeping/home-maintenance benefits are also optional under the post-July 1, 2026 system.
FSRA explains that the structure of these benefits changed at the same time.
Before July 1, the standard caregiver and housekeeping framework was closely tied to catastrophic impairment, with an optional expansion available for non-catastrophic impairment.
Under the new framework, the legislated standard optional coverage can apply to all impairments, rather than restricting standard availability to catastrophic impairment.
Important distinction: This does not mean every injured person automatically receives caregiver or housekeeping benefits. The coverage must apply under the policy, and the claimant must still satisfy the applicable SABS requirements.
Insurers may also have approved variations in the coverage they offer, so the policy wording and endorsement remain important.
Medical, Rehabilitation and Attendant Care Remain Mandatory
The July 2026 reforms did not make all accident benefits optional.
Medical, rehabilitation and attendant-care benefits remain part of the mandatory automobile insurance framework.
| Coverage | Standard Limit | Available Increase |
|---|---|---|
| Non-Catastrophic Medical, Rehabilitation & Attendant Care | $65,000 | Options may increase coverage to $130,000 or $1,000,000 |
| Catastrophic Impairment | $1,000,000 | Coverage may be increased to $2,000,000 |
These limits are subject to the detailed provisions of the SABS and the coverage actually purchased.
For serious injuries, see our catastrophic injury lawyer in Mississauga page and our guide to catastrophic impairment in Ontario.
What Is OPCF 47R?
The July 2026 reforms also introduced OPCF 47R — Optional Accident Benefits Coverage & Priority of Payment.
It should not be confused with a general waiver of legal liability.
OPCF 47R addresses optional accident-benefit coverage and priority-of-payment issues where a person may potentially qualify for coverage under more than one policy.
FSRA states that insurers should ensure customers have access to the highest level of coverage available under a policy for which they are eligible and under which they elect to claim benefits.
The endorsement operates at the policy level and forms part of the revised insurance framework introduced for July 2026.
What Should Ontario Drivers Review?
The reforms make the insurance purchasing decision more important because two drivers with otherwise similar policies can now have different accident-benefit protection.
Before choosing or changing coverage, consider discussing the following with your insurer, agent or broker:
- whether income replacement coverage is included;
- the maximum weekly income-replacement amount;
- whether non-earner benefits are included;
- whether caregiver coverage is included;
- whether housekeeping and home-maintenance coverage is included;
- death and funeral coverage;
- dependant-care coverage;
- indexation;
- optional increases to medical, rehabilitation and attendant-care limits;
- which members of the household are listed as drivers; and
- which optional benefits continued or changed when the policy renewed.
Coverage needs differ between households. Employment benefits, disability coverage, income, dependants and available financial resources can all affect the practical importance of different optional benefits.
What If You Are Injured After July 1, 2026?
Do not assume that an accident benefit is either available or unavailable based solely on the accident date.
The correct analysis can require reviewing:
- the automobile policy in force on the date of the accident;
- the original effective date and renewal history;
- the certificate of automobile insurance;
- optional-benefit selections;
- applicable endorsements, including OPCF 47R where relevant;
- who is named or listed on the policy; and
- the eligibility requirements of the SABS.
People injured in a collision can also review our car accident lawyer in Mississauga page for information about accident-benefit and tort claims.
Frequently Asked Questions About the July 2026 SABS Changes
Did Ontario eliminate accident benefits on July 1, 2026?
No. Medical, rehabilitation and attendant-care benefits remain mandatory. Many other accident benefits became optional.
Is income replacement still available after July 1, 2026?
Yes, but income replacement is now an optional accident benefit under the applicable post-July 1 framework. Whether you have it depends on the policy and benefit selections that apply to you.
Does income replacement automatically become zero when my policy renews?
Not necessarily. Ontario’s renewal transition rules generally continue certain previously held benefits as optional benefits at their previous amounts unless the named insured and insurer agree in writing to decline or change them. Your actual renewal documents should be reviewed.
What accident benefits are still mandatory?
Medical, rehabilitation and attendant-care benefits remain mandatory components of Ontario automobile insurance.
Are caregiver and housekeeping benefits still available?
Yes, but they are optional. Under the new framework, the legislated standard coverage may apply to all impairments rather than being limited to catastrophic impairment, subject to the coverage purchased and the applicable SABS eligibility requirements.
What is OPCF 47R?
OPCF 47R is the Ontario endorsement titled Optional Accident Benefits Coverage & Priority of Payment. It addresses optional accident-benefit coverage and priority-of-payment issues. It is not simply a general waiver of liability.
Do the 2026 changes affect catastrophic injury benefits?
Medical, rehabilitation and attendant-care benefits remain mandatory. The standard combined limit for catastrophic impairment is generally $1,000,000, with an option to increase the available coverage to $2,000,000.
Should I cancel optional accident benefits because I have benefits through work?
That decision should not be made from a general article alone. Employer disability plans, health benefits and automobile accident benefits can have different eligibility requirements, limits, exclusions and durations. Review the actual coverage with the appropriate insurance professionals before making a change.
Injured in an Ontario Car Accident After the July 2026 SABS Changes?
The new system makes the wording of the automobile policy increasingly important when determining which accident benefits may be available after a collision.
Contact Nav Aujla at Cambria Law Firm to discuss an Ontario car accident claim and how the current SABS may apply to your circumstances.
Personal Injury Disclaimer: This article provides general legal information only and does not constitute legal advice or insurance advice. Automobile insurance coverage and entitlement to accident benefits depend on the policy, endorsements, facts of the accident and applicable Ontario law. Drivers considering insurance coverage changes should review their policy and discuss their insurance needs with their insurer, agent or broker.
Official Sources
- Ontario Regulation 34/10 — Statutory Accident Benefits Schedule:
https://www.ontario.ca/laws/regulation/100034
- Ontario Regulation 383/24 — Amendments to the Statutory Accident Benefits Schedule:
https://www.ontario.ca/laws/regulation/r24383
- Financial Services Regulatory Authority of Ontario — Optional and Extra Coverage:
https://www.fsrao.ca/consumers/auto-insurance/purchasing-your-policy/optional-and-extra-coverage
- Financial Services Regulatory Authority of Ontario — Customize Your Liability and Accident Benefits Coverage:
https://www.fsrao.ca/consumers/auto-insurance/purchasing-your-policy/customize-your-liability-and-accident-benefits-coverage
- Financial Services Regulatory Authority of Ontario — Changes in Statutory Accident Benefits Coverage on July 1, 2026:
https://www.fsrao.ca/industry/auto-insurance/changes-statutory-accident-benefits-coverage-ontario-july-1-2026
- Financial Services Regulatory Authority of Ontario — OPCF 47R: Optional Accident Benefits Coverage & Priority of Payment:
https://www.fsrao.ca/opcf-47r-optional-accident-benefits-coverage-priority-payment
