As of July 1, 2026, Ontario’s Statutory Accident Benefits Schedule shifted to a primarily opt-in model such that consumers must now actively opt-in and pay for coverage like income continuation which was previously mandatory as part of their auto insurance policy.

While medical, rehabilitation and attendant care benefits remain mandatory, all other accident benefits are now optional including the following:

• Income replacement benefits;
• Non-earner benefits;
• Caregiver benefits;
• Housekeeping and home maintenance benefits;
• Death benefits;
• Funeral benefits;
• Damage to clothing and personal items;
• Lost educational expenses;
• Visitor expenses.

Even if the auto policy holders purchase optional benefits, such benefits are now generally limited to the named insured, their spouse, dependents and listed drivers, and do not include everyone injured in or by a motor vehicle accident.  Rather, people injured in auto accidents who are not covered by their own auto insurance policy, or that of a family member, will no longer be able to access optional accident benefits. This could include pedestrians and cyclists struck by a vehicle and passengers who are strangers to the auto policy involved.

The changes pose new pressures on the tort system as they leave some injured persons with little or no coverage in the event of an accident. As a result, injured persons are now more likely to pursue tort claims to recover benefits that were previously available under the accident benefits system.

Under the new optional-benefits model, tort claims may become an injured person’s primary, if not only source, of compensation for benefits such as income replacement or housekeeping and home maintenance. With these benefits now optional, insurers can reasonably expect more underinsured plaintiffs and larger damages claims with little to no set-off.