A la carte is a great option when dining out, but not when you’re buying auto insurance.
When Ontario drivers get their next notice to renew their auto insurance, they will find a whole new world of options, thanks to big changes to the Statutory Accident Benefits Schedule in Ontario. But more choice will likely mean more risk for road users, even if the amendments deliver on their promise of up-front savings.
The Ontario SABS changes
Starting July 1, 2026, the provincial government has eliminated many forms of coverage from the mandatory list that drivers must purchase before hitting the road, leaving basic medical, rehabilitation, and attendant care as the only types of required benefits coverage.
Drivers who want other forms of previously mandatory coverage can still get access, but they will now have to pay extra for them “a la carte” from the non-mandatory list, which includes coverage for:
- Income replacement benefits
- Extended medical, rehabilitation, and attendant care
- Dependant care
- Caregiver benefits
- Housekeeping and home maintenance benefits
- Death and funeral expenses
- Damage to clothing, eyeglasses, hearing aids, and more
- Indexation of benefits.
Rising premiums demand action
There is no denying that Ontario’s auto insurance premium problem is one worth addressing. A recent Statistics Canada report found that premiums have risen 18.9% countrywide over the past five years, with Ontario among the worst affected.
According to a Toronto-based insurance technology provider, rates went up in the province by more than 4% in the first six months of 2025 alone, with the average Ontario driver now paying close to $3,000 annually, even with a clean driving record.
Coverage cuts the wrong solution
The current provincial government is not the first to pinpoint the problem with Ontario’s high-cost auto insurance regime. But just like their predecessors, they have hit on the wrong solution by targeting cuts to coverage.
As a personal injury lawyer in Oakville who has spent years representing people navigating the claims process, I know from experience that it’s injury victims who end up paying the price. More choice and flexibility in benefits coverage sounds great in theory, but in practice, drivers stick with the inferior default because they don’t truly understand what they’re giving up until it’s too late. I expect many Ontario drivers will regret having given up key coverage in hindsight, following a severe accident for barely noticeable premium savings.
The most significant difference for injury victims who opt for mandatory-only coverage under the new rules will be their inability to access income replacement benefits, which are paid at 70 per cent of a claimant’s pre-accident gross income, up to a maximum of $400 per week.
But you won’t need to be a driver to be affected by the new SABS rules. Vulnerable road users like pedestrians or cyclists who are injured in car accidents and do not have their own auto insurance will find that their benefits coverage is dictated by the choices of the person who hit them.
Less coverage, more litigation
Another unintended consequence of the Ontario SABS changes may play out in our already clogged civil courts, where judges handle tort claims arising from motor vehicle accidents.
With a smaller SABS safety net, underinsured individuals are more likely to turn to the courts to cover their out-of-pocket expenses.
Insurance companies are not renowned for their generosity, so it will be interesting to see what kinds of savings they will pass on to consumers. If there are any short-term rate reductions, I would not be surprised to see them evaporate in the next couple of years to account for insurers’ rising litigation costs.
Some good news
Despite my significant misgivings, the SABS amendments are not all bad news. In addition to retaining medical, rehabilitation, and attendant care on the mandatory coverage list, the updated rules also remove the requirement that insured individuals exhaust any workplace benefits before turning to those available under the SABS.
This requirement has always been a source of unnecessary bureaucracy, confusion, and delay for injury victims who simply want to get on with their recovery without getting involved in a discussion over which insurer will pay what for their treatment.
When it’s time to renew your policy, I would urge any driver to select the highest level of coverage you can afford. Nobody wants or expects to be injured in an accident, but anyone unlucky enough to suffer the effects of one will want to know that their car accident benefits in Oakville are adequate to protect them.
Contact Edwards Pollard LLP to discuss your car accident benefits in Oakville
If you’ve been involved in a motor vehicle accident and have questions about your benefits or your legal rights, feel free to contact a member of the personal injury lawyer team at Edwards Pollard LLP in Oakville.