Editorial guide · Updated May 2026

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

On July 1, 2026, Ontario's mandatory auto insurance package shrinks. Under Ontario Regulation 383/24, most accident benefits that drivers have historically received automatically become optional. Three benefits remain mandatory: medical, rehabilitation, and attendant care. Everything else is now a coverage you choose to keep, or to decline, on your renewal.

This guide explains what the regulation actually does, where the primary sources sit, and what you can expect to see on a renewal notice after July 1. Every regulatory claim below is sourced inline to the underlying FSRA page, the regulation itself, or RIBO's industry FAQ.

What 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 — see FSRA's reform hub: “Changes in Statutory Accident Benefits coverage in Ontario on July 1, 2026.”

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:

• Income replacement
• Non-earner
• Caregiver
• Housekeeping and home maintenance
• Dependent care
• Death
• Funeral
• Visitor expenses
• Lost educational expenses
• Damage to personal items

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 (or someone in your household, where applicable) choose to keep them.

When does it take effect, and what about my 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.

The OPCF 47R endorsement

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. If you have a workplace or family health plan that has been your first stop for accident-related physiotherapy or specialist care, that order reverses on July 1, 2026.

What you can expect to see at your next renewal

A few practical things:

• Your existing coverage carries forward by default. You do not need to opt back in to coverages that are mandatory today and becoming optional July 1. They stay on your policy at renewal unless you sign something declining them.
• You will see an OPCF 47R on your renewal documents that reflects which optional benefits you carry and which you don't. Read it carefully and ask your broker about anything unclear before signing.
• If a broker or insurer recommends declining optional benefits in exchange for a premium reduction, ask: who in your household is covered for what, what happens if a non-named-insured driver is hurt in your car, and what each optional benefit would have paid for if you needed it.
• The coverage scope change applies to everyone on July 1, 2026 — including drivers on policies that don't renew until later in the year. Optional benefits cover a narrower set of people than today's mandatory benefits do, even if your policy technically still carries those benefits.

What 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.

What you can do: ask your broker for a clear written summary of which optional benefits are recommended at your renewal, what each costs in premium, and what each would have paid for in a claim. The decision is yours to make.

What 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.

Sources used in this article

• Ontario Regulation 383/24 — the amending regulation itself (ontario.ca/laws).
• Statutory Accident Benefits Schedule (O. Reg. 34/10) — the underlying SABS regulation, including the s.19 attendant care cap.
• FSRA — Changes in Statutory Accident Benefits coverage in Ontario on July 1, 2026 — the regulator's canonical reform hub.
• FSRA — Auto reform accident benefits optionality Q&A for insurers — guidance on existing policies, renewal treatment, and the OPCF 47R.
• RIBO — Ontario auto reform / SABS changes resource page — the broker regulator's reform resource for licensees.
• IBAO — Ontario auto — industry association context on disclosure practice for brokers.

How we wrote this. This article was researched and drafted by reading the regulation, FSRA's reform hub and Optionality Q&A, and RIBO's industry resources. Every regulatory claim, dollar figure, effective date, and rule change in the body of the article links inline to one of the sources above. We do not cite premium forecasts or specific savings claims because those are projections, not regulated outcomes. We don't make those forecasts ourselves. If you spot a factual error, please email editorial@toprates.ca and we will correct it.

TopRates.ca is a brand of Webhub4u Inc., which is not a licensed insurance broker. This article is educational; it does not constitute personalized advice. For questions about your policy, talk to a licensed broker or your insurer. Full disclosure.

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