As of July 1, 2026, there will be significant amendments to Ontario’s automobile insurance system. There will be a fundamental shift to the Statutory Accident Benefits Schedule (SABS), coming to effect under Ontario Regulation 383/24. In the event of a motor vehicle collision, there will be changes that reshape how accident victims are able to access support. All individuals who hold an automobile insurance policy should be aware of the imminent changes, and how to best protect themselves against being under-insured. 

From Mandatory to Optional: A New Model of Coverage 

In the current system, all automobile insurance policies in Ontario include a standard package of accident benefits, covering everything from income replacement and caregiving to funeral expenses. The list of mandatory benefits soon to change consists of the following: 

1. Medical, rehabilitation and attendant care; 

1. Caregiver benefits; 

1. Non-earner and income replacement benefits; 

1. Housekeeping and home maintenance expenses; and 

1. Death & funeral benefits. 

Starting in 2026, only medical, rehabilitation and attendant care benefits will remain mandatory. Everything else, including vital supports like income replacement, caregiver and death & funeral benefits will become optional. For these benefits to be part of your policy, they must be specifically selected and purchased. Changing to an opt-in system, rather than opting out as it is now. 

Why This Matters 

If you are ever involved in a motor vehicle collision and seriously injured, you may be unable to work, take care of yourself, and maintain the upkeep of your property. Optional benefits such as income replacement or housekeeping will no longer be included in your policy unless they are expressly selected. Under the new rules, these critical supports will no longer be automatic and you may be left with fewer options, or none, when you need them the most.  

Removal of the “Catastrophic” Barrier 

The one silver lining to this change is that benefits such as caregiving and housekeeping will no longer require a catastrophic designation. Meaning that those who are injured will more easily be able to access these benefits, as long as the optional coverage was purchased.  

The Vulnerable Are Most at Risk

Pedestrians, cyclists, and passengers without their own insurance policies are groups of people who are already vulnerable on the roads. With the new amendments, they will face an even greater risk as they may have no access to support through the SABS. If an individual is involved in a motor vehicle collision and does not have access to a policy with optional benefits, they will be barred from receiving the immediate support that they otherwise would have. The only option for recourse will be to pursue a legal claim against the at-fault driver. 

What You Should Do 

Changes such as these demand action. A response by all automobile insurance holders needs to be made promptly, not in 2026. Next steps: 

1. Review your current automobile insurance policy, to know what’s covered and what is not; 

1. Speak with your broker or insurer regarding the addition of optional benefits to match your needs and those of your family; and 

1. Consult a personal injury lawyer at Bergeron Clifford LLP, to understand the magnitude of these changes and how they could affect your rights in the event of an accident.  

Duty of Care in Broker Negligence 

In the current rendition of the SABS, insurance brokers are required to provide advice and identify any gaps that an individual may have in their coverage. Insurers have a duty of care to properly inform their customers of all coverages that are available to them. Those being both compulsory and optional coverages, so that the insured is sufficiently covered in the case of an accident occurring. This is supported by s. (1.0.1) of the SABS and the, Fletcher v. Manitoba, [1990] 3 SCR 191 (SCC), case, which continues to be a leading precedent to this day.  

Causation 

The July 2026 amendments will make it very difficult for claimants to receive any additional benefits, if they did not opt in and purchase them. Your insurance purchase history may come into play in the event of a benefit dispute, so be aware of that. If you selected and have solely chosen to receive basic coverage plans, it will be difficult to argue that you would’ve selected the additional benefits, had it not been for broker negligence. As per Zefferino v. Meloche Monnex Insurance, 2012 ONSC 154 (CanLII). Be aware of this and be proactive.   

Final Thoughts 

The 2026 SABS reforms take the onus off insurers and shift the responsibility onto consumers to ensure that they are adequately protected. Although consumers will have an enhanced freedom of choice, and the ability to lower their insurance rates, the risk of being underinsured is vast. At Bergeron Clifford LLP, we’ve seen firsthand how accident benefits can make or break an individual’s ability to recover and rebuild themself after a traumatic accident. 

We urge all Ontarians to take these changes seriously. Don’t wait until it’s too late. Saving a few dollars now is not worth being barred from these optional benefits when you or a loved one needs them.  

Burke Derbyshire is a graduate of LaSalle Secondary School in Kingston. Upon graduation, he attended Queens University on an athletic scholarship where he played for the men’s football team. He then completed his law degree at the University of Leicester, United Kingdom, and was a moot court finalist as well as an active member of the Canadian Law Society.

Burke worked at Bergeron Clifford in the summer of 2023 as a summer student, and is now working as an articling student while also completing his NCA exams.

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