Ontario Auto Insurance Optional Benefits Liability Questions

• As of July 1, 2026, most accident benefits are optional in Ontario auto insurance policies.
• Drivers can now choose which benefits they want to include in their policy, rather than being automatically covered for a standard set of benefits.
• Declining optional benefits may transfer the risk to the consumer and potentially lead to catastrophic financial hardship if not properly advised.
• Lawyers advise clients to review their existing insurance protections outside of auto insurance to ensure adequate coverage in case of a motor vehicle injury.

The province has deliberately replaced a more prescriptive package with greater consumer choice, giving drivers the ability to decline optional coverages they believe they do not need in order to save on auto premiums.

As of July 1, 2026, Ontario's auto insurance regulations have undergone significant changes. The Statutory Accident Benefits Schedule (SABS) has been amended to make most accident benefits optional, rather than mandatory. This means that drivers can now choose which benefits they want to include in their policy, rather than being automatically covered for a standard set of benefits. Only medical, rehabilitation, and attendant care benefits remain mandatory on new and renewing auto policies.

The changes to the SABS were made through Ontario Regulation 383/24. The amendments aim to give drivers greater consumer choice and flexibility in their auto insurance coverage, allowing them to decline optional benefits they believe they do not need to save on premiums. However, this shift in responsibility from the insurer to the consumer has raised concerns about the potential for inadequate advice and financial consequences of underinsurance.

The implications of these changes are far-reaching and complex. Lawyers advise clients to review their existing insurance protections outside of auto insurance, such as employer disability insurance programs or supplementary health plans, to ensure they are adequately covered in case of a motor vehicle injury. They should also be aware that declining optional benefits may transfer the risk to the consumer and potentially lead to catastrophic financial hardship if not properly advised.

Lawyers should advise clients to review their existing insurance protections outside of auto insurance, such as employer disability insurance programs or supplementary health plans, to ensure they are adequately covered in case of a motor vehicle injury. They should also be aware that declining optional benefits may transfer the risk to the consumer and potentially lead to catastrophic financial hardship if not properly advised.

Source: Original reporting via Ontario government regulations and industry experts