2026 Increases to Statutory Deductibles and Monetary Thresholds

If you are the victim of a motor vehicle accident in Ontario, your recovery will be governed by the Insurance Act. In order to recover compensation for pain and suffering, also known as “general damages”, you must meet the legal threshold test set out in Section 267.5(5) of the Insurance Act:

(5) Despite any other Act and subject to subsections (6) and (6.1), the owner of an automobile, the occupants of an automobile and any person present at the incident are not liable in an action in Ontario for damages for non-pecuniary loss, including damages for non-pecuniary loss under clause 61 (2) (e) of the Family Law Act, from bodily injury or death arising directly or indirectly from the use or operation of the automobile, unless as a result of the use or operation of the automobile the injured person has died or has sustained,

(a) permanent serious disfigurement; or

(b) permanent serious impairment of an important physical, mental or psychological function.

In the event that your injuries and impairments surpass this legal threshold, your claim will be subject to a statutory deductible unless it exceeds a prescribed amount, known as the “monetary threshold”.

The monetary thresholds and deductibles are set annually, according to inflation, by the Financial Services Regulatory Authority of Ontario (FSRAO). The figures for 2026 were recently published as follows:

There are two exceptions in which the statutory deductible does not apply:

1. The general damages or Family Law Act claims awarded at trial exceed the monetary threshold set out above, or
2. The claim involves a fatality, and is advanced under the Family Law Act.

The monetary thresholds and statutory deductibles increase annually, and the insurers directly benefit from these increases as they serve to reduce their financial exposure to injured victims whether in the context of negotiation or trial. This is especially true with jury trials, where the jurors are not permitted to know about the monetary threshold or deductible.

To make matters more complicated, there is a court-imposed limit on the amount an injured Plaintiff can be awarded for pain and suffering. In 1978, the Supreme Court of Canada set the cap on general damages at $100,000. Adjusted for inflation, the upper limit is estimated as of January 2026 at $470,085.

This financial and legal advantage for the insurer creates complexities that can be diminished through strong advocacy by highly skilled and experienced personal injury lawyers. At Bogoroch & Associates LLP we take tremendous pride in our success in closing this gap and helping our clients navigate what is otherwise a very complex, and at times, difficult process. 

Check Previous Versions Here:

2025 Increases to Statutory Deductibles and Monetary Thresholds

2024 Increases to Statutory Deductibles and Monetary Thresholds