In just under two years, Ontario drivers will face one of the most sweeping changes to auto insurance policies ever introduced. Starting July 1, 2026, most benefits we have come to rely on for financial security after an accident will no longer be mandatory. Instead, the Ontario government’s move towards an “a la carte” model means drivers must actively choose which additional coverages to include – and which to go without.
At Foisy & Associates, we have been closely following these upcoming changes, and frankly, we are concerned. While there is talk of “empowering consumer choice,” we see a troubling reality: many Ontarians may inadvertently leave themselves and their loved ones at risk, unaware of the extent of protections they are giving up.
Below, we unpack what these changes mean and why opting out of essential coverages could devastate families already grappling with the trauma of a serious accident.
The Bare Minimum: What Will Still Be Covered in 2026
The upcoming reforms reduce mandatory coverage to just three benefits:
- Medical Expenses
- Rehabilitation Services
- Attendant Care
While these are critical, they are just a fraction of the protections Ontarians currently have. The rest – income replacement, non-earner benefits, caregiver and housekeeping expenses, visitor and funeral benefits – will become optional. This means if you do not specifically ask your insurer or broker to add these to your policy, they simply will not be there when you need them.
These “extra” benefits are not just frills; they can make the difference between stability and financial devastation after an auto accident.
Understanding What You Stand to Lose
If you have been lucky enough never to experience a severe auto accident, it is easy to assume that things like income replacement or visitor expenses are not critical. But we urge you to consider the reality:
- Income Replacement Benefit – Currently, if an accident leaves you unable to work, this benefit provides up to $400 per week to help cover your expenses. Under the new plan, if you have not opted for this coverage, you will lose it. How many families could realistically survive without income for weeks, months, or even years if a breadwinner is incapacitated?
- Visitor Expenses – This benefit covers your family’s costs (like meals, travel, and parking) while they visit you in the hospital. Without it, they will bear the full financial burden themselves – right when you all should be focusing on recovery, not financial strain.
- Housekeeping and Home Maintenance – Imagine being immobilized after an accident. With housekeeping coverage, essential chores and maintenance can continue while you recover. Without it, you will either need to pay out of pocket for help or struggle on your own, compromising your recovery.
The Real-World Impact of No-Fault Benefits
Auto insurance in Ontario operates on a no-fault system, meaning regardless of who caused the accident, injured parties rely on their own insurance to cover costs. If you skip these “optional” benefits, your recovery will depend solely on what you chose to cover, not on what you might need. Here is the reality: if the other driver is at fault and lacks adequate coverage, you will not be able to turn to them for compensation. You are effectively on your own if you have not opted for the necessary coverages.
Do Not Fall into the Trap of “It Won’t Happen to Me”
It is human nature to believe that tragedy is something that happens to other people. But as personal injury lawyers, we see cases daily that remind us that accidents can happen to anyone, at any time. Every single day, people face the stark reality that no-fault benefits are there to support them not only because of how they drive, but to protect them from other drivers’ mistakes, recklessness, or lack of coverage.
Act Now to Protect Your Family’s Future
For 2024 and 2025, before these reforms come into effect, you should still add the minimum optional medical, rehabilitation, and attendant care benefits to your no-fault policy. While even these benefits will remain with the policy reforms effective July 1, 2026, the minimum coverage is not enough. You need to increase these benefits from $65,000 to $1,000,000 for non-catastrophic benefits and $1,000,000 to $3,000,000 in the event your injuries are deemed catastrophic. This increase will add approximately $100 per year (not per month) to your no-fault accident benefit policy.
As your policy renewal approaches in 2026, that is the time to become more informed and take action. Here is what you can do to ensure your loved ones are protected:
- Talk to Your Insurance Provider or Broker: Call them and ask which benefits are optional under the new 2026 rules. Get a detailed breakdown of each benefit – including income replacement, visitor expenses, caregiver benefits, housekeeping, and funeral expenses.
- Consider Your Family’s Needs: Do not base your choices purely on price. Ask yourself honestly: what would you be willing to sacrifice in the aftermath of a severe accident? Prioritize peace of mind over short-term savings.
- Ask About Bundling Options: Many insurers may offer package deals for these “optional” benefits. Inquire about bundling essential coverages to secure adequate protection without overextending your budget.
- Do Not Accept Minimum Medical/Rehabilitation/Attendant Care Benefits: This will be crucial to ensure that you increase these benefits.
- Educate Yourself and Your Loved Ones: Share this information with friends and family. Many Ontarians are unaware of these changes and may assume they are covered as usual, only to discover otherwise when it is too late.
- Consider Optional Benefits as a Gift: What a unique gift to present to your parents or older children who you never know what to purchase. This will give you both peace of mind.
Choosing “Optional” Coverage Today is Choosing Stability Tomorrow
It is easy to fall into the trap of thinking that more options mean more flexibility and savings. But in this case, those savings come with a high price – your safety, your family’s well-being, and the security that no-fault benefits have provided for decades. Imagine the frustration of facing medical recovery, rehabilitation, and financial strain, only to learn that an “optional” benefit could have saved you from hardship. This is the reality Ontarians will face if they don’t prepare now.
The choice is in your hands, and it is a crucial one. In a world where accidents are unpredictable, ensure you have done everything possible to protect yourself and your loved ones. Contact your insurance provider today, and make sure your current and future policy includes all essential no-fault accident benefits.
Do not wait for an accident to show you what is missing in your coverage. Invest in peace of mind now – your future self will thank you.