Significant changes are coming to Ontario auto insurance, and they may cost you more than just a few dollars in savings.

On July 1, 2026, updates to the Statutory Accident Benefits Schedule (SABS) will come into effect. These reforms are being promoted as a way to give drivers more control over their coverage and premiums. But beneath the promise of flexibility lies a serious concern: important benefits that accident victims have traditionally relied on will no longer be automatically included in your auto insurance policy.

What’s Changing in Ontario Auto Insurance in 2026?

Starting next summer, several key benefits that are currently built into every standard auto insurance policy will become optional. These include:

• Income Replacement Benefits: Provide weekly compensation (up to $400 per week under current rules) if you are unable to work due to accident-related injuries.
• Non-Earner Benefits: Offer basic support if you were not employed at the time of the accident but can no longer perform daily activities, such as school, caregiving, or other personal responsibilities.
• Housekeeping and Home Maintenance Benefits: Help cover the cost of services like cleaning and home care if your injuries prevent you from maintaining your household. Under current SABS rules, this benefit is only automatically available if your injuries are classified as “catastrophic.” For non-catastrophic claims, it must be purchased as an optional benefit. After July 1, 2026, it will continue to be optional and must be selected at the time you purchase or renew your policy.

After July 1, 2026, these benefits will only be available if you specifically choose to purchase them when you obtain your auto insurance policy or renew your policy. If you don’t ask for them, they will not be part of your policy, even if you suffer serious injuries.

Why This Matters: The Real Cost of “Saving” on Premiums

Most drivers choose insurance based on cost, not coverage. Insurance companies know this, and these changes will allow them to offer lower premiums by quietly removing crucial protections.

The risk is real. Imagine being in a serious accident and suddenly discovering that you have no income support during your recovery. If you haven’t purchased the optional benefits in advance, you could be left paying out of pocket for basic needs and support.

Here is what that could mean in practical terms:

• No weekly payments if you are unable to work.
• No financial assistance if you are a student, stay-at-home parent, or caregiver whose life is disrupted.
• No support with housework or home care if your injuries prevent you from managing on your own.

In short, you may believe you are covered but find yourself without help when you need it most.

Who Could Be Most Affected?

While all drivers should pay attention to these changes, certain groups may be particularly vulnerable, including:

• Self-employed individuals who rely on consistent income and do not have workplace disability benefits.
• Stay-at-home parents and caregivers who perform unpaid yet essential roles.
• Students and new graduates who are not yet earning full-time incomes or do not have access to group insurance.

Without the right coverage in place, the financial impact of an accident could be devastating.

What’s Behind the Changes?

The provincial government and insurance industry claim these reforms give drivers more choice and more affordable options. But the reality is, most people are not insurance experts. They do not always know what coverage they need until it is too late.

What looks like a good deal upfront may leave you under protected if the unexpected happens.

How Ontario Drivers Can Protect Themselves Before July 1, 2026

To make sure you are not left vulnerable, consider taking these steps:

1. Review your current insurance policy and understand exactly what is included. Ask your insurance provider and/or broker which benefits are standard, and which will soon become optional.
2. Plan ahead for your next renewal, especially if it falls after July 1, 2026. Benefits you currently have may no longer be included.
3. Think about your personal situation. If you do not have long-term disability coverage through work, or if others depend on you, make sure your auto policy reflects that reality.
4. Do not assume your policy has you covered. Ask specific questions and make informed decisions before choosing a plan that seems “affordable.”

Final Thoughts: Don’t Be Caught Uncovered

These changes to auto insurance in Ontario may sound like a move toward flexibility, but they place more responsibility on the individual driver to understand and manage their own risk. In practice, this means fewer protections unless you actively pay for them.

At Burn Tucker Lachaine, we have seen first-hand how essential these benefits are when someone is injured. We are committed to helping you navigate the evolving insurance landscape so that you are not caught off guard.

If you have questions or concerns about how the upcoming SABS changes may affect you or your loved ones, now is the time to act.

If you have been injured, please text 613-777-0992 or contact us through our website to schedule a meeting with one of our lawyers.  We provide a free consultation, in French or English, to ensure that your rights are protected.   In most cases, we can offer to represent you on a contingency fee basis.  This means that you do not pay legal fees unless you win or achieve a settlement on your case.