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On October 16, 2024, the Government announced the biggest change to auto insurance in over 3 decades. While they have been reducing available funding and refusing to increase benefits with inflation for years, this change will affect every Ontarian dramatically.
Effective July 1, 2026, the only benefits to become mandatory in Ontario will be medical and rehabilitation benefits and attendant care benefits. Any other benefit will become optional. The optional benefits as of July 1, 2026 will be:
Policyholders can choose to purchase these benefits, tailoring their coverage to meet their specific needs.
For insurance professionals, this shift represents a significant opportunity. Insurers can now offer customizable packages that appeal to different client needs. Families looking for comprehensive protection can purchase higher limits on income replacement or additional coverage for caregivers, while individuals seeking more budget-friendly options may opt out of certain benefits they don’t foresee needing. This flexibility allows professionals to educate clients on balancing costs with coverage, offering tailored advice based on each family’s situation.
The second proposed amendment would modify the Insurance Act and SABS to reverse the priority levels for payment of medical and rehabilitation benefits (excluding medication expenses).
Currently, under section 46.3(2) of the SABS, supplementary health insurance plans must be exhausted before auto insurance can be claimed. Under the amendment, auto insurance would take payment priority for portions of the expense reasonably available to the insured person, under the supplementary health insurance plan.
This means that you are no longer required to submit any medical receipts/expenses to your collateral benefits available through your employer or partner’s employer.
For families, the changes mean more control over how they protect themselves on the road. Do you want to ensure that you’ll receive more than the basic coverage if you’re injured and unable to work? Or are you comfortable with a leaner policy, knowing that benefits like caregiver or non-earner coverage might not apply to your circumstances?
One important thing to note is that these optional benefits must be purchased before an accident—you can’t add them retroactively. This makes the decision to opt-in now crucial.
The new changes give Ontario families the freedom to decide what level of coverage suits them best. However, this also means taking a closer look at what’s offered and making an informed choice about whether to opt into higher levels of protection. Consulting with an insurance professional or personal injury lawyer can help families navigate these choices, ensuring they are prepared for the unexpected without overpaying for unnecessary coverage.
In this new era of flexibility, it’s best to stay informed, ensuring that insurance policies provide the right balance of coverage and cost for you and your family.
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