Starting July 1, 2026, Ontario’s auto insurance will undergo a big change: critical benefits like income replacement, caregiver support, and funeral coverage, which were once automatic, will now become optional add-ons. This means that to stay protected, you’ll need to actively choose these coverages in your motor vehicle policy.

In this article, we’ll walk you through what this change means, why it matters, and what you can do to ensure you’re covered.

What’s Changing?

Under the new regulation, only medical, rehabilitation, and attendant care benefits will remain automatically included in Ontario’s auto insurance policies. All other benefits—like income replacement, caregiver benefits, and more—will need to be added by choice.

Before: Accident benefits like income replacement and funeral costs were standard in all policies.

After July 1, 2026: You’ll need to opt into most benefits, which means if you don’t actively choose them, they won’t be included.

Who’s Affected?

This change affects all Ontarians who hold auto insurance, whether you’re a new policyholder or renewing your existing policy after July 1, 2026. This includes not only drivers but also pedestrians and cyclists who rely on motor vehicle accident benefits in case of an accident.

Why This Matters

By making benefits optional, the government aims to give consumers more flexibility and potentially lower premiums. But there’s a trade-off: without careful choices, you could end up with insufficient coverage when you need it most.

For example:

• Lost Wages: If you’re injured and unable to work, income replacement benefits help cover lost wages. But without adding this option, you won’t receive any income support.
• Caregiver Support: If you’re the primary caregiver and are injured, caregiver benefits would cover the cost of someone else taking over your duties. However, this benefit will only be available if you opt into it.

Challenges to Watch For

With these new changes, policyholders will need to make informed choices to avoid underinsurance. Here are some of the challenges:

1. Potential for Insufficient Coverage
   Many people may assume their policy includes these benefits, as it has in the past. This misunderstanding could leave them without critical financial support during recovery.
2. Increased Financial Burden
   Choosing these add-ons could increase premium costs. It’s essential to balance the added cost against the risk of not having enough coverage if an accident happens.
3. Complexity in Policy Choices
   Reviewing and understanding insurance options can be overwhelming, especially with multiple optional benefits. This is where legal guidance can help you make sense of it all.

What You Can Do to Prepare

These changes put more responsibility on Ontarians to ensure they have adequate coverage. Here are steps you can take now to protect yourself:

1. Review Your Current Policy
   Check which benefits you currently have and what’s automatic. Knowing where you stand will help you make more informed decisions when the changes take effect.
2. Decide Which Benefits Matter Most to You
   Consider your lifestyle and risk factors. If you rely on your income to support family or need caregiver support, these benefits might be essential.
3. Plan Ahead for Premium Costs
   Understand that choosing optional benefits may increase your premium. Plan accordingly, and weigh the cost of additional coverage against the risk of lacking essential support.
4. Seek Professional Advice
   Insurance can be complex. Consulting with legal or insurance professionals can help you choose benefits tailored to your needs.

How Pace Law Can Help

At Pace Law, we understand that these changes can feel overwhelming. Our team is here to help you navigate this transition with confidence. Here’s how we can support you:

• Personalized Policy Reviews: We’ll help you understand your current coverage, identify any gaps, and decide which optional benefits align with your needs.
• Educational Resources: We’re committed to educating our clients about these changes so that you’re equipped to make informed choices.
• Proactive Advocacy: We’re actively working to raise awareness of these issues, ensuring our community is prepared and protected.

In Summary

Ontario’s new accident benefits regulation aims to give more choice but comes with potential risks. Without automatically included benefits, it’s crucial to understand your options, weigh the costs, and make choices that fit your needs.

If you’re unsure where to start, reach out to us at Pace Law. Our team is ready to help you make the best decisions for your protection and peace of mind. Don’t wait until it’s too late—take action now to stay covered and prepared.