If you live in Ontario, your auto insurance policy is about to undergo its most significant transformation in decades. Effective July 1, 2026, the province is moving from a “one-size-fits-all” model to an “à la carte” system for accident benefits . For decades, if you were injured in a car accident, your standard policy guaranteed access to a wide range of financial supports. Very soon, only one core category will remain mandatory: Medical, Rehabilitation, and Attendant Care benefits .
This article breaks down what these changes mean for your rehabilitation coverage, what is at risk of being left behind, and exactly what you need to do to ensure you and your family are protected after a collision.
The Core of the Change: What Stays and What Goes
To understand the impact, it helps to look at the current system versus the new one. Currently, a standard auto policy in Ontario includes a suite of no-fault benefits—meaning you receive them regardless of who caused the accident. These include Income Replacement Benefits, Caregiver Benefits, Non-Earner Benefits, and various expense coverages .
Starting July 1, 2026, the only mandatory coverage left will be Medical, Rehabilitation, and Attendant Care. All other benefits listed below will become optional, meaning you must specifically request them and pay an additional premium to have them .
| Category of Benefit | Status Before July 1, 2026 | Status After July 1, 2026 |
|---|---|---|
| Medical, Rehab & Attendant Care | Mandatory (Standard in all policies) | Mandatory (Still included) |
| Income Replacement, Non-Earner | Mandatory | Optional (Pay extra) |
| Caregiver, Housekeeping, Home Maint. | Mandatory | Optional (Pay extra) |
| Death & Funeral Benefits | Mandatory | Optional (Pay extra) |
| Visitor Expenses, Lost Educational Expenses | Mandatory | Optional (Pay extra) |
| Damage to Clothing, Glasses, Hearing Aids | Mandatory | Optional (Pay extra) |
Rehabilitation Benefits: The Last Man Standing
So, what exactly is protected in this new system? The “Medical, Rehabilitation and Attendant Care” benefit is the safety net that remains. This coverage is designed to pay for the essential services you need to recover from your injuries. This typically includes:
- Medical Professionals: Visits to family doctors, specialists, and surgeons.
- Rehabilitation Services: Physiotherapy, chiropractic care, massage therapy, osteopathy, and psychology services .
- Attendant Care: Costs associated with hiring a caregiver to help with daily activities if you are severely injured.
- Medical Equipment: Wheelchairs, walkers, or other devices prescribed by a health professional .
The government views these as the “critical coverages” necessary for immediate health and safety . While this is a relief, relying solely on this mandatory coverage leaves significant gaps in your recovery.
The Hidden Dangers of “A La Carte” Insurance
While the government frames this as a way to lower premiums and increase consumer choice, experts and consumer advocates warn of significant risks .
1. The Income Replacement Gap
The most significant danger is the loss of mandatory Income Replacement Benefits. Currently, if you are employed and injured, your policy provides up to $400 per week (or a higher amount if you purchased an upgrade) to replace lost income . After July 2026, if you opt out of this coverage to save money and are later hurt and unable to work, you will have no income stream from your insurance. You would be forced to rely on Employment Insurance (EI) or disability benefits through work—if they exist at all .
2. The “Stranger Danger” for Pedestrians and Cyclists
These changes dramatically increase risk for people who don’t own cars. Currently, if you are a pedestrian or cyclist hit by a car, you make a claim against the at-fault driver’s policy for those lost income and other benefits . After July 2026, if the driver who hit you only bought the basic mandatory coverage (rehab only), you cannot claim income replacement or other benefits from their insurance, even though the accident was their fault .
3. The Cost of Choice
Insurance experts note that the savings from dropping these benefits are minimal. According to the Insurance Brokers Association of Ontario (IBAO), dropping Income Replacement saves the average driver only about $75 per year, and dropping Non-Earner benefits saves about $12 per year . As Steve Harris, a licensed insurance broker, warns, “Optional accident benefits make up only about 5% of the premium, so the savings are modest. Drivers need to consider whether saving that small amount is worth the risk of being underinsured after a collision” .
4. A Two-Tiered System
This reform creates a two-tiered system where those who can afford to pay extra for benefits will be protected, while those who opt-out to save money—often those already struggling financially—will face financial ruin if injured .
Positive Changes: Insurers to Pay First
Amidst the concern, there is one change that rehabilitation advocates support. The new rules clarify the “first payer” status, meaning auto insurers will pay eligible medical and rehabilitation expenses before your workplace extended health benefits plan kicks in . Previously, navigating who pays first could be a bureaucratic headache. This change should streamline the process and ensure that rehab starts faster without exhausting workplace benefits too quickly .
What You Need to Do Right Now
With the deadline fast approaching, here is how you can protect yourself and your family:
- Talk to Your Broker (Don’t Just Auto-Renew): When your policy comes up for renewal after July 1, 2026, do not simply click “yes” on the cheapest option. Sit down with your insurance broker and ask exactly what coverage you are dropping .
- Assess Your Personal Safety Nets: Do you have a robust short-term and long-term disability plan at work? Do you have significant savings? If the answer is no, you likely need to opt-in to Income Replacement and other benefits .
- Consider Your Family’s Needs: If you are a caregiver for children or elderly parents, or if you rely on housekeeping services, the optional Caregiver and Housekeeping benefits are crucial for your family to maintain stability while you recover .
- Look Beyond the Premium: Remember, the goal of insurance is to be there when you need it. Saving $100 a year might feel good now, but it pales in comparison to the financial devastation of losing months of income or being unable to care for your family after a crash .
Conclusion
The July 1, 2026, changes to Ontario’s accident benefits represent a fundamental shift in how we are protected on the road. While the government maintains that keeping Medical, Rehabilitation, and Attendant Care benefits mandatory protects the core of recovery , the reality is that financial recovery is just as important as physical recovery.
By making benefits like income replacement optional, the province has shifted the burden of choice onto the consumer. Being an informed consumer is no longer optional—it is the only way to ensure that if the worst happens, your insurance policy actually covers you when you need it most.
