Major changes in car insurance will come into effect July 1st

By Gazette Staff

June 2^nd, 2026

BURLINGTON, ON

Insurance for car drivers undergoes a significant change on July 1^st.

Nine out of 12 standard auto accident insurance benefits become optional. They are meant to give consumers more choice.

Get the insurance cover you need, given your individual circumstances.

The provincial government is making these changes to provide Ontario drivers with more flexibility.

The changes mean consumers have to make some difficult trade-offs between modestly lower premium costs and taking on additional risk.

What’s optional and what’s not?

The following auto accident benefits will become optional: income replacement benefits; non-earner benefits; caregiver benefits; lost educational expenses; expenses of visitors; housekeeping and home maintenance; damage to personal items; death benefits and funeral benefits.

Standard medical, rehabilitation and attendant care benefits will continue to be included in all auto insurance policies, which cover medical expenses, therapy, personal care assistance for injuries from an accident (including doctor visits), physiotherapy and help with daily activities such as bathing.

How will this impact insurance premiums?

Drivers on tight budgets may choose not to opt in.

Removing all of the optional auto accident benefits will save Ontarians approximately $100 a year (that’s around $8 a month).

Who should opt in and who should opt out?

Those purchasing a policy on or after July 1 will have to opt in to the optional accident benefits they want to purchase. Make a point of asking your insurance agent or broker which benefits are included in your quote.

For some Ontario drivers, it might make sense to opt out of some of the benefits. A retired person likely won’t need income replacement. What new changes mean for pedestrians not covered by insurance

Talk to your insurance broker to get the details you need.

For those trying to save money, reach out to an insurance broker to see if there are other ways you can save

The IBC and the Financial Services Regulatory Authority of Ontario (FSRA) have information on their websites that explain what each of the nine optional benefits encompass. Consumers with questions about the changes can reach out to the IBC through its consumer information line at 1-844-227-5422.

You can change your optional accident benefits any time, so if you have a change of heart or your circumstances change (having a child or starting a new job), you can contact your insurer, agent or broker to review your options. Just keep in mind that only the coverage in place at the time of an auto accident will apply to your claim.