Are You Ready for Ontario’s 2026 Auto Insurance Changes?

Big changes are coming to Ontario’s auto insurance policies starting July 1, 2026. Benefits that were once standard—like income replacement, caregiver support, and funeral coverage—will no longer be automatically included. Instead, they’ll become optional add-ons. This means you’ll need to actively choose these coverages to stay protected.

Here’s everything you need to know about what’s changing, who’s affected, and how to prepare.

What’s Changing?

Under the new rules, only medical, rehabilitation, and attendant care benefits will be automatically included in your auto insurance. Benefits like income replacement, caregiver support, and more will need to be added by choice.

• Before July 1, 2026: Standard policies included these benefits automatically.
• After July 1, 2026: You must opt in to keep them.

If you don’t actively choose these benefits, you’ll no longer be covered for them.

Who Does This Affect?

This change affects everyone with auto insurance in Ontario. Whether you’re a new policyholder or renewing your existing policy after July 1, 2026, these changes apply. It also impacts pedestrians and cyclists who rely on accident benefits if they’re injured in a collision.

Why It Matters

The government says this change will offer more flexibility and potentially lower premiums. But there’s a catch: without careful choices, you could end up with insufficient coverage when you need it most.

Here are a few examples:

• Lost Wages: If you can’t work after an accident, income replacement benefits can help. Without opting in, you won’t get this support.
• Caregiver Support: Injured caregivers will need to opt in to receive financial help for someone to take over their duties.

3 Key Challenges to Watch For

1. Misunderstanding Your Policy: Many people may assume their coverage stays the same. Without actively opting in, you could miss out on critical benefits.
2. Increased Costs: Adding benefits could increase your premium. It’s important to weigh the cost of additional coverage against the risk of being underinsured.
3. Overwhelming Choices: Deciding which benefits you need can be complicated. That’s where professional guidance can help you make the right decisions.

How to Prepare for These Changes

The responsibility to ensure adequate coverage now falls on policyholders. Here’s how you can stay protected:

1. Review Your Current Coverage: Check what benefits you already have and what will change.
2. Decide What You Need: Think about your lifestyle. If you rely on your income or need caregiver support, these benefits are essential.
3. Plan for Premium Adjustments: Understand that optional benefits may cost more but could save you from greater financial strain after an accident.
4. Seek Expert Advice: A legal or insurance professional can help you make informed choices tailored to your needs.

How Pace Law Can Help

Pace Law is committed to helping Ontarians navigate these changes confidently. Here’s how they can support you:

• Policy Reviews: They'll help you identify gaps in your current coverage and decide which optional benefits are right for you.
• Educational Resources: They'll provide the tools and knowledge you need to make informed decisions.
• Advocacy: They're working to raise awareness about these changes and protect your rights.

Take Action Now

Ontario’s new accident benefits regulation gives you more choices but also more responsibility. Without automatic coverage, it’s critical to understand your options and make informed decisions.

Don’t wait until it’s too late—review your policy, plan for the changes, and seek advice. If you need guidance, Pace Law is here to help. Reach out today to secure your peace of mind for tomorrow.

Click here to learn more about the changes here.