A major change to auto insurance in Ontario is set to take effect in 2026. The Ontario government has decided to remove most mandatory accident benefits from automobile insurance policies and transition to an “a la carte” model.

Starting July 1, 2026, only medical, rehabilitation, and attendant care benefits will be mandatory in every auto insurance policy, while all other benefits will become optional. This means that benefits such as Income Replacement Benefits, Non-Earner Benefits, Caregiver Benefits, Housekeeping and Home Maintenance Expenses, Dependant Care Benefit, Death Benefits, and Funeral Benefits will no longer be included as standard in every policy. Instead, policyholders will have to select which benefits they wish to include.

While the aim of this new legislation is to lower costs and provide greater choice, there is a risk that individuals may lack critical coverage when they need it most. For example, the Income Replacement Benefit (IRB), which currently provides up to $400 per week to help cover lost wages after an accident, will become optional in 2026. If you choose not to include the IRB and find yourself unable to work, you won’t be able to claim for lost income, which can be a significant financial strain during an already challenging time.

Stay tuned as we learn more about these changes and how they will be implemented.