Effective July 1, 2026, major changes are coming to the Statutory Accident Benefits (SABS) no fault scheme in Ontario which will dramatically impact what auto insurance companies will cover for injured victims of motor vehicle accidents. Key changes are set out below:
1. Income replacement benefits are no longer automatically covered – ONLY basic Medical, Rehabilitation and Attendant Care Benefits are covered
The main change is that only medical, rehabilitation and attendant care benefits will continue to be included in all auto policies.
All other benefits provided under the SABS will be optional – meaning you will have to pay more for benefits that your auto policy now covers.
As of July 1, 2026, the optional benefits you will have to pay for now include: income replacement benefits, non-earner benefits, caregiver benefits, death and funeral benefits and visitors expenses.
Importantly, the insured must opt-in to these optional benefits, rather than opt-out, leaving a greater chance for reduced coverage.
2. Optional Benefits – What They Actually Do
3.Fewer people are covered
Presently, if the injured party does not have their own automobile insurance policy, SABS can be claimed in other ways. For example, if you are a passenger in a motor vehicle, benefits can be claimed through the driver’s insurer. If you are a pedestrian or cyclist, benefits can be claimed through the insurer of the driver involved in the accident.
As of July 1, 2026, many injured people will not have access to coverage for SABS. Only people who have their own auto insurance coverage, their family members or dependents will be covered. Pedestrians and passengers will be shut out.
Summary of Changes
If you don’t pay, you don’t get certain coverage. The chart below summarizes the differences between the current system and the optional benefits system effective July 1, 2026:
Speak to your Insurance Broker to Explore your Options
Major changes to accident benefits take effect in 2026. Speak with your insurance broker before renewing your policy to understand what coverage is no longer automatic and which optional benefits you may need to purchase to protect yourself and your family.
Bogoroch & Associates LLP is a leading personal injury and medical malpractice law firm and our lawyers would be happy to answer your questions. Please email info@bogoroch.com for further information.
When you or someone you love gets injured, reach out to our personal injury lawyers at 1-866-599-1700 for a free consultation. We work with clients throughout Toronto, Brampton, Mississauga, and all of Ontario using a contingency fee structure, meaning you do not pay us anything unless we obtain compensation for you.