Starting July 1, 2026, major changes to Ontario’s Statutory Accident Benefits Schedule (SABS) will take effect. These reforms will reduce mandatory auto insurance benefits and shift Ontario to a more consumer-selected coverage model.
If you are a driver, cyclist, or pedestrian in Ontario, these changes could directly affect your access to income replacement and other accident benefits after a crash.
Here’s what you need to know.
What Are Ontario Statutory Accident Benefits (SABS)?
Ontario’s Statutory Accident Benefits provide no-fault financial and medical support to people injured in motor vehicle accidents regardless of who caused the collision.
These benefits are governed by the Insurance Act and O. Reg. 34/10 (SABS).
Historically, Ontario accident benefits have included:
- Medical and rehabilitation benefits
- Attendant care benefits
- Income Replacement Benefits (IRBs)
- Non-earner benefits
- Caregiver benefits
- Death and funeral benefits
Importantly, cyclists and pedestrians hit by a motor vehicle are eligible for accident benefits, even if they do not own a vehicle.
What Is Changing on July 1, 2026?
For auto policies issued or renewed on or after July 1, 2026:
Only Three Benefits Remain Mandatory:
- Medical benefits
- Rehabilitation benefits
- Attendant care benefits
All Other Benefits Become Optional:
- Income Replacement Benefits (IRBs)
- Non-earner benefits
- Caregiver benefits
- Death and funeral benefits
Drivers must actively select and pay for these optional coverages.
Ontario is moving from a standardized accident benefits system to a model where income protection and caregiver benefits depend on what was chosen at purchase or renewal.
Will You Automatically Lose Benefits at Renewal?
No.
If you renew an existing auto policy after July 1, 2026:
- Your current optional accident benefits will generally remain in place
- You must provide written instructions to remove them
However, new policies issued after July 1 will default to only the mandatory minimum benefits unless optional coverage is selected.
This makes renewal reviews critical.
How Do These Changes Affect Cyclists and Pedestrians?
Cyclists and pedestrians injured in Ontario motor vehicle accidents will still have access to the mandatory accident benefits:
- Medical benefits
- Rehabilitation benefits
- Attendant care benefits
However, the major change is this:
Optional accident benefits including income replacement, caregiver, non-earner, housekeeping, and death benefits are restricted to the named insured, their spouse, dependants, and listed drivers under the policy.
That means:
Even if a driver involved in the collision purchased optional income replacement benefits, those optional benefits do not extend to an unrelated pedestrian or cyclist injured by that vehicle.
Under Ontario’s statutory priority rules, accident benefits are typically claimed in this order:
- The injured person’s own auto insurer
- A spouse’s or household member’s insurer
- The insurer of the automobile involved in the accident that struck them (regardless of fault)
- The Motor Vehicle Accident Claims Fund (MVACF)
After July 1, 2026, optional benefits will only be available if the injured person personally qualifies under one of those responding policies as:
- The named insured
- A spouse
- A dependant
- A listed driver
If they do not fall within that defined class, income replacement and other optional benefits will not be payable even if the driver of the vehicle involved elected enhanced coverage.
For vulnerable road users, this represents a significant shift. Pedestrians and cyclists do not control what coverage a driver purchases, yet they face some of the highest injury risks on Ontario roads. After July 1, 2026, many may have access to medical care — but not income protection.
What Happens in a Hit-and-Run or Uninsured Driver Case?
If the at-fault driver is uninsured or unidentified, the Motor Vehicle Accident Claims Fund (MVACF) acts as a payer of last resort.
After July 1, 2026:
- The Fund will provide the statutory accident benefits available under SABS.
- If optional benefits such as income replacement were not available under any applicable policy in the priority chain, they may not be available through the Fund.
In practical terms, some injured people may receive medical coverage but no income replacement.
Ontario’s History of Reducing Accident Benefits
Ontario accident benefits have been narrowed several times:
- 2010: Reduced medical and rehabilitation limits
- 2016: Combined and reduced medical/rehab and attendant care limits; tightened catastrophic definitions
- 2026: Makes income replacement and caregiver benefits optional
While these reforms have aimed to promote affordability, Ontario drivers continue to experience premium volatility.
What Has Not Changed
The right to sue an at-fault driver in tort has not been eliminated.
These reforms affect no-fault accident benefits only. Lawsuits remain subject to Ontario’s threshold and deductible rules.
Frequently Asked Questions About Ontario Accident Benefits Changes (2026)
- Are accident benefits being eliminated in Ontario?
No. Medical, rehabilitation, and attendant care benefits remain mandatory. However, income replacement and other financial benefits become optional starting July 1, 2026.
- Will cyclists still receive accident benefits after July 1, 2026?
Yes. Cyclists hit by motor vehicles will continue to qualify for mandatory accident benefits. Optional benefits such as income replacement will depend on available policy coverage under Ontario’s priority rules.
- Will pedestrians lose income replacement benefits?
Not automatically. If an applicable auto policy includes optional income replacement coverage, it may be available. If no responding policy includes it, income replacement may not be available.
- Do these changes apply immediately to everyone?
No. They apply to auto policies issued or renewed on or after July 1, 2026. Existing policies generally retain their optional coverages unless removed in writing.
- Does the Motor Vehicle Accident Claims Fund provide income replacement benefits after July 1, 2026?
The Fund provides statutory accident benefits available under SABS. If income replacement benefits are not available under any applicable policy, they may not be available through the Fund.
- Will auto insurance premiums go down in Ontario because of these changes?
Premium impact remains uncertain. While reduced mandatory benefits lower insurer exposure, whether this results in sustained premium reductions will depend on regulatory approvals, claims costs, and market conditions.
- Should drivers opt out of optional accident benefits to save money?
Optional benefits often represent a relatively modest portion of the premium, but they can provide critical financial protection after a serious injury. Drivers should carefully assess the risk before opting out.
Final Thoughts
The July 1, 2026 Ontario accident benefits changes represent a significant structural shift. Medical care remains protected but income protection becomes a purchasing decision.
Before renewing or purchasing a policy, review your coverage carefully and understand what is included.
If you have been injured in a motor vehicle accident as a driver, passenger, cyclist, or pedestrian , legal advice can help you understand your rights under Ontario’s accident benefits system.
