Written by Simrin Pardal
In this edition of our Fall newsletter, we will be discussing significant changes to the Statutory Accident Benefits Schedule (SABS) regime in Ontario.
The Ontario government has announced changes to the SABS, which will take into effect on July 1, 2026. These changes pertain to the benefits that are available to Ontarians as part of their standard auto insurance policy.
Currently in Ontario, a person that is injured in an automobile collision, regardless of fault, is eligible for a variety of benefits, including:
- Medical and Rehabilitation and Attendant Care Benefits;
- Income Replacement Benefits if you are injured and unable to work;
- Caregiver and/or Non-earner benefits if were unemployed and unable to carry on a normal life;
- Visitor expenses for a family member to visit you in the hospital following a collision;
- Death benefits payable to your family in the event that you pass away in a collision;
- Funeral benefits to help pay for final expenses for a family member who passes away as a result of a collision;
- Lost educational expenses, cost to replace damaged clothing, eyewear, hearing aids, etc.
Some benefits are optional and must be opted in to, such as:
- Caregiver Benefits;
- Increased Income Replacement Benefits;
- Housekeeping and Home Maintenance Expenses.
As of July 1, 2026, only Medical, Rehabilitation and Attendant Care Benefits will be included as part of the mandatory coverage included in a standard auto insurance policy.
All other benefits mentioned above will be available for individuals to opt-in to for coverage in their policy at an additional cost.
The purpose of this change to an “a la carte” service is to reduce insurance premiums and allow consumers to have the option to purchase additional benefits at their choice.
While premiums may reduce in the short term, critics argue that the reduction will not last long and will leave many Ontario motorists without essential benefits.
These changes will likely result in Ontarians selecting the most affordable auto insurance policy option, making them vulnerable to lack of coverage in the case of an automobile accident.
This can further exacerbate financial hardship in cases where individuals involved in an automobile accident do not have income replacement benefits or coverage through their employer; making them rely on Employment Insurance or ODSP as their primary income source.
Additionally, pedestrians, passengers, and cyclists that may be involved in a collision, regardless of being at fault, may be left without a source of income if they are struck by a party that does not have optional benefits in their auto insurance policy.
This means that victims involved in a collision may be vulnerable to financial ruin, regardless of being at fault.
Limited access to benefits will lead to an increased stress on the public sector and social services which are already at capacity.
Thus, these changes to the SABS coming from the Ontario government in July 2026 may enable consumer choice but have the potential of negatively impacting individuals involved in a collision.
References
O. Reg. 34/10: STATUTORY ACCIDENT BENEFITS SCHEDULE – EFFECTIVE SEPTEMBER 1, 2010. Ontario.ca. (2010, September 10). https://www.ontario.ca/laws/regulation/100034#BK21