If you are a student, a homemaker, or currently between jobs, you might think that being injured in a car accident wouldn’t result in a loss of income. After all, you weren’t drawing a paycheck. However, Ontario’s auto insurance system has long recognized that injuries have a profound impact beyond the workplace, disrupting your ability to study, care for your home, or simply enjoy a normal daily life.
This recognition comes in the form of the Non-Earner Benefit (NEB) . But a massive shift is coming on July 1, 2026, that will change everything about how Ontarians access this crucial protection. Here is what you need to know about the Non-Earner Benefit today, and how the upcoming reforms will put the onus on you to secure your financial future.
What is the Non-Earner Benefit?
In the current system (pre-July 2026), the Non-Earner Benefit is a mandatory part of every auto insurance policy in Ontario. It is designed for people who were not employed at the time of the accident and therefore do not qualify for the Income Replacement Benefit (IRB) .
The purpose of the NEB is to compensate you for the disruption to your “normal life.” This recognizes that a serious injury doesn’t just stop you from working; it stops students from studying, parents from caring for their children, and retirees from enjoying their leisure activities.
To qualify for the NEB under the current rules, you must meet two key criteria :
- Eligibility: You must be in one of the following categories at the time of the accident:
- Unemployed and not eligible for the Income Replacement Benefit.
- Enrolled as a student in elementary, secondary, or post-secondary school.
- A recent graduate (within one year of finishing your studies).
- Disability: You must suffer an impairment that leaves you “completely unable to carry on a normal life.” This is a strict test. It is not enough to be unable to work; you must be unable to perform the essential tasks of your daily life.
How much does it pay?
If you qualify, the Non-Earner Benefit currently provides a payment of $185 per week. However, if you qualified as a recent graduate, that amount increases to $320 per week . It is important to note that this benefit is not payable for the first 26 weeks (six months) after the accident, acknowledging that the full impact of an injury on one’s normal life takes time to assess .
The “A La Carte” Revolution: What Changes on July 1, 2026
The Ontario government has passed new regulations (Ontario Regulation 383/24) that will fundamentally alter the structure of auto insurance . Starting July 1, 2026, the standard auto insurance policy will be stripped down to the bare bones.
The government’s goal is to lower premiums and give drivers more choice by moving to a model where you only pay for the coverage you need . After July 1, 2026, the only mandatory accident benefits in every policy will be :
- Medical, Rehabilitation, and Attendant Care Benefits.
This means the Non-Earner Benefit will no longer be automatically included in your policy. It, along with Income Replacement, Caregiver, Housekeeping, and Death Benefits, will become an optional purchase .
What This Means for You: The New Reality for Non-Earners
This shift from a mandatory “one-size-fits-all” model to an “à la carte” system places a significant new responsibility on you, the consumer . Here is how the 2026 changes will impact your access to the Non-Earner Benefit:
1. You Must Opt-In
If you are a student, a stay-at-home parent, or currently unemployed, you will no longer be automatically protected. When you renew your policy after July 1, 2026, you will have to specifically choose to purchase the Non-Earner Benefit and pay an additional premium for it . If you simply accept the basic policy to save money, you will have zero coverage for the disruption to your normal life if you are injured .
2. The Risk of Being Underinsured
There is a real concern that many drivers, tempted by lower premiums, will opt out of these benefits. As one legal expert noted, “historically, Ontarians are reluctant to pay a little extra for add-ons, despite the fact that those very things are critical if the time comes when they need those benefits most” . If you opt out and are later in an accident that leaves you unable to attend school or care for your family, you will have no safety net from your auto policy .
3. Vulnerability for Non-Policyholders
The changes also have a massive impact on people who don’t own a car. Currently, if a pedestrian or cyclist is hit by a car, they can claim accident benefits (like the NEB) from the at-fault driver’s insurance policy. Under the new system, those benefits are only available if the at-fault driver opted to purchase them. If they chose the cheapest policy without the Non-Earner Benefit, an injured student or unemployed person may have no access to this funding at all .
Your Safety Net: Tort Claims and the Importance of Choice
While these changes may seem daunting, your rights to compensation are not completely eliminated. Even if you opt out of the Non-Earner Benefit—or if the at-fault driver did—you may still have the right to file a tort claim (a lawsuit against the at-fault driver) .
In a tort claim, you can sue the person who caused the accident for damages that are not covered by your accident benefits, including :
- Pain and Suffering: Compensation for the physical and emotional distress caused by the accident.
- Loss of Enjoyment of Life: This is, in essence, the tort equivalent of the Non-Earner Benefit, compensating you for your inability to live your normal life.
- Loss of Future Income: Even if you are a student now, you can claim for the loss of your future earning capacity if your injuries permanently prevent you from working.
However, suing the at-fault driver is a longer and more complex process than claiming accident benefits. It requires proving the other driver was negligent, which takes time and is not guaranteed.
Conclusion: Knowledge is Your Best Coverage
The Non-Earner Benefit provides a vital lifeline for some of the most vulnerable people injured in car accidents—those whose lives are turned upside down even if they weren’t heading to an office. After July 1, 2026, that lifeline will no longer be automatic.
To ensure you and your family are protected, you cannot afford to be passive.
- Talk to your insurance broker: Before your renewal after July 1, 2026, have a detailed conversation about your personal circumstances. If you have a child in university or a spouse who works at home, ask specifically about the cost and value of opting into the Non-Earner Benefit .
- Review your policy documents carefully: Do not assume your coverage will remain the same. Insurers may send renewal notices with the new, basic coverage, and it will be up to you to ask for more .
The 2026 reforms offer choice and the potential for savings, but they also introduce significant risk. By understanding what the Non-Earner Benefit is and how the rules are changing, you can make an informed decision and avoid finding yourself without coverage when you need it most.
