Ontario auto insurance reform: what's changing on July 1, 2026.

01What the reform actually does

Ontario's accident benefits system is governed by the SABS — a regulation under the Insurance Act that defines what every Ontario auto policy must, at minimum, cover. O. Reg. 383/24 amends the SABS and the Insurance Act so that on July 1, 2026, the “standardized” accident benefits package shrinks to a smaller core, with the rest moved into a menu of optional coverages a consumer can buy or decline.

FSRA, Ontario's insurance regulator, describes the change as a transition from a standardized package to a flexible model where drivers choose which protections to keep.— FSRA reform hub: “Changes in Statutory Accident Benefits coverage in Ontario on July 1, 2026”

02What stays mandatory, what becomes optional

What remains mandatory

After July 1, 2026, only three categories of accident benefits are mandatory on every Ontario auto policy:

• Medical benefits — reasonable and necessary medical expenses arising from an auto accident.
• Rehabilitation benefits — services that help an injured person recover from or adapt to an accident-related impairment.
• Attendant care benefits — payments for the cost of an aide who helps with daily living tasks after a serious injury. Under SABS s.19, the monthly cap is $3,000 for non-catastrophic injuries (payable for up to five years) and $6,000 for catastrophic impairment (payable for life), both drawing against the combined SABS pool. These caps are unchanged by the 2026 reform.

What becomes optional

For policies effective on or after July 1, 2026, the following accident benefits become optional. A consumer can elect to purchase each one, or decline it, on their policy:

Source: O. Reg. 383/24, as described by FSRA's reform hub and RIBO's industry resource page

The list above is the optionality menu in O. Reg. 383/24 as described by FSRA's reform hub and RIBO's Ontario auto reform resource page. If you currently receive any of these benefits without thinking about them, that is because they are mandatory today and you got them by default. After July 1, 2026, they appear on your policy only if you choose to keep them.

Source: FSRA — Changes in Statutory Accident Benefits coverage in Ontario on July 1, 2026

03When it takes effect — and your existing policy

The reform takes effect on July 1, 2026. From that date forward, any new Ontario auto policy — or any renewal that takes effect on or after that date — falls under the new framework.

For existing policies, FSRA's position is straightforward: an existing policy renews with the same coverages and limits as the expiring policy unless the policyholder agrees, in writing, to a change — see FSRA's Optionality Q&A for insurers. That means if you do nothing at renewal, your policy continues with the coverage you have today, including the benefits that are becoming optional under the reform.

Who the optional benefits cover — before vs after

Source: the coverage-scope narrowing set out on FSRA's reform hub, against the SABS definition of an insured person

04The OPCF 47R endorsement — and the “first payer” change

Where a consumer chooses to purchase or decline optional benefits, those choices are documented on a new endorsement called the OPCF 47R, which replaces the previous OPCF 47. FSRA does not require insurers to add the OPCF 47R immediately to policies effective before July 1, 2026. For existing policies, the endorsement is added at renewal, or earlier if there is a mid-term change to optional accident benefits. See FSRA's Optionality Q&A.

The “first payer” change for medical and rehab

One change worth flagging separately: under the reform, the auto insurer becomes the first payer for accident-related medical and rehabilitation expenses (other than medication), replacing the current default where private health plans pay first. Source: FSRA reform hub.

05What we won't tell you

How much you personally will save on premium after July 1, 2026 — because we can't honestly forecast it. Premium impact depends on which optional benefits you keep or decline, how your insurer files its reform-adjusted rates with FSRA, and your individual rating profile. Anyone publishing a specific “average Ontario driver saves $X” figure is making a forecast, not citing a regulated outcome. We don't do those forecasts.

06What is not in the reform

Reform coverage often conflates several different changes that have happened to Ontario auto insurance over the last few years. To be specific about what O. Reg. 383/24 does and does not do:

• It is not a no-fault repeal. Ontario's no-fault accident benefits framework — claims against your own insurer, regardless of fault — continues. What changes is the composition of the benefits package, not the no-fault structure itself.
• It does not change DCPD rules. Direct Compensation — Property Damage (DCPD) is the coverage that pays for damage to your vehicle when you are not at fault. Ontario already made DCPD optional on January 1, 2024 via the OPCF 49 endorsement — that was a separate, earlier reform. O. Reg. 383/24 (July 2026) is about accident benefits, not DCPD.
• Minimum liability limits are not changing here. O. Reg. 383/24 is about accident benefits (the “injury” side of an auto policy). It does not change the statutory minimum third-party liability limit. If you reduce your liability limit, that is a separate conversation with your broker.
• The attendant care monthly cap is unchanged. The SABS s.19 cap remains $3,000/month non-catastrophic and $6,000/month catastrophic.
• This reform is Ontario-specific. Auto insurance is provincially regulated; if you move provinces, a different regime applies.