Auto Insurance
Canadian Auto Insurance Changes 2026
Canadian auto insurance is changing on July 1, 2026. The Financial Services Regulatory Authority of Ontario, also known as FSRA, has confirmed updates to how Statutory Accident Benefits work on new and renewing personal auto policies. Some benefits remain mandatory on every policy, while others move to the optional menu. This guide explains the changes in everyday language so you can decide what to keep, what to add, and what to ask your broker about.
What are Statutory Accident Benefits
Statutory Accident Benefits, often shortened to SABS, are the part of your auto policy that pays for medical care, rehabilitation, income replacement, and other support if you are injured in a collision. These benefits apply no matter who caused the accident.
Today, every Canadian auto policy includes a standard package of these benefits, with the option to buy higher limits if you want broader protection for your family.
What stays mandatory after July 1, 2026
FSRA has confirmed that three core protections will continue to be required on every Canadian auto policy:
- Medical benefits, which cover treatment costs after a collision
- Rehabilitation benefits, which help you recover and return to daily life
- Attendant care benefits, which pay for personal care if your injuries require it
What becomes optional
Other accident benefits that have been part of the standard package will move to the optional menu. That means you will be able to choose whether to keep them, and at what limit, when you buy or renew a policy.
Examples of benefits that may shift to optional include income replacement, non earner benefits, caregiver benefits, housekeeping and home maintenance, and death and funeral benefits. The exact menu will depend on the wording approved by FSRA closer to the change.
If you remove a benefit and never need it, you may save a small amount on premium. If you remove a benefit and later need it after a serious collision, you and your family pay the difference. That trade off is the heart of this decision.
Who should pay close attention
- Households where one income supports several family members
- Self employed drivers, gig workers, and small business owners
- Parents of young children or older dependents at home
- Anyone who relies on a single vehicle for work or caregiving
- Drivers with extended health coverage that does not include long term rehabilitation or attendant care
What to do before your next renewal
- Pull out your current policy declarations page and look at your accident benefits limits
- List your real monthly income and the people who depend on it
- Note any private benefits from work that already cover medical or income replacement
- Ask your broker to show you the cost difference between a basic and enhanced benefits package
- Decide based on your family's needs, not only the lowest premium
Where to read the official guidance
FSRA regulates auto insurance in Canada and has published an overview of the upcoming changes. The Registered Insurance Brokers of Ontario, also known as RIBO, has shared additional resources for licensed brokers and consumers. Both pages are linked in the references below.
Not sure which accident benefits to keep
A licensed RIBO broker can walk through your policy line by line and explain the 2026 options in plain language. No pressure, no jargon.
Frequently asked questions
When do the Canadian auto insurance changes take effect
The changes apply to new and renewing personal auto policies issued on or after July 1, 2026. Your current policy continues under existing rules until it renews.
Do I have to remove any benefits in 2026
No. The change makes some benefits optional, not unavailable. You can still buy the same protection you have today, and in many cases you can buy higher limits.
Will my premium go down if I drop optional benefits
It may, but the savings are often smaller than people expect. A broker can show you the cost of each option so you can weigh the savings against the loss of protection.
Does this change affect liability or collision coverage
No. The 2026 update focuses on Statutory Accident Benefits. Third party liability, direct compensation property damage, collision, and comprehensive coverage are not part of this change.
References and official guidance
This article is for educational purposes only and is not a substitute for personal advice from a licensed insurance professional. Coverage, eligibility, and pricing vary by carrier and policy. Always refer to your policy wording for exact terms.