New Ontario Auto Insurance Rules: Not A Risk Worth Taking
- Yellow Pages Admin
- 4 days ago
- 4 min read
Automobile insurance is mandatory in Ontario. If you want to drive, you must be insured. Most Ontario residents pay for car insurance but never get hurt in a crash, so never need to use it. That can make the cost of insurance seem like a waste. Many would jump at the chance to pay less.
Changes to Ontario’s auto insurance rules are coming into effect July 1, 2026. The provincial government says the changes will make auto insurance more affordable by allowing for more consumer choice. A closer look at the upcoming changes throws those claims into serious doubt. You and your dependents may be left underinsured and without critical coverage when you need it most.
Current No-Fault Auto Insurance Coverage Regime
To understand the implications of the changes, it’s helpful to review coverage provided under our current no-fault insurance regime. In Ontario, injured individuals are entitled to claim accident benefits through their automobile insurance policy. It provides an extra layer of financial security for a driver, passenger, cyclist, snowmobiler, or pedestrian hurt in a motor vehicle accident.
Under the current system, regardless of who was at fault for the crash, an injured person could be entitled to a lifetime of benefits, including:
Ambulance fees
Expenses related to a hospital stay (parking fees, meals if you’re out of town)
Expenses of visiting family members when you’re hospitalized out of town
Medical and rehabilitation benefits
Attendant care benefits
Housekeeping benefits
Income replacement benefits of up to $400 per week (or greater with appropriate coverage)
Medication not already covered by any private insurance plan
Assistive devices (e.g., slings, crutches, braces)
Replacement of items damaged in the accident (e.g., clothing, hearing aids)
Childcare expenses
Funeral expenses
Caregiver benefits
Non-earner benefits
As you can see, the current basic accident benefits policy covers an extensive range of out-of-pocket expenses and benefits. That range of coverage is vital, especially when your income may be reduced or eliminated due to accident injuries.
Our Sault Ste. Marie accident claims lawyers have successfully negotiated resolution of accident benefits claims in the millions of dollars, in some cases for individuals who were entirely at fault for the accident. The value of having sufficient no-fault benefit coverage simply can’t be understated.
Paying Less…or Just Getting Less?
Now let’s talk about the upcoming changes. Right off the top, it must be emphasized that the changes are NOT lowering insurance premiums across the board. Instead, the new rules make certain types of coverage optional. You’ll still be required to purchase a basic auto insurance policy that covers certain benefits, but every other type of coverage that is currently a mandatory part of Ontario’s no-fault accident benefit coverage will become optional.
When the changes come into effect, the skeleton policy will include only these benefits:
Medical and rehabilitation benefits
Attendant care benefits
That means all the other benefits in the current coverage list will become optional. If you want to have coverage for income loss, caregiver benefits, housekeeping expenses, etc., you will have to “opt-in” and pay for each extra type of coverage. If you don’t opt in, you will have less coverage than you have now. In other words, you may pay less, but that’s because you will be getting less.
The very real concern is that many people will not opt in. The temptation of saving some cash will be too difficult to pass up. Unfortunately, that creates the serious risk that injured drivers, passengers, cyclists, snowmobilers, and pedestrians alike will be underinsured when they need it the most. Insurance companies will benefit from the changes, as they will no longer be on the hook for benefits that were previously included with a basic no-fault auto insurance policy.
Make Sure You Understand What You’re Getting
Let’s consider what will happen if you don’t opt in for income replacement benefits, which will be one of the “extras” under the new system. If you are seriously injured in a motor vehicle accident and can’t work, you will not have access to benefits of up to $400 per week (or more if you purchased a higher level of coverage). Income replacement benefits are non-taxable and would be available for up to 104 weeks if you remain unable to do your job. Not having coverage for lost income would be a major loss when you are struggling to cope with injuries and facing financial strain.
Many consumers shop for auto insurance based on price, checking for the cheapest quote without being told the details of the coverage they’re buying. When the changes come into effect, you should take time to fully understand what you are opting in and out of. Talk to a knowledgeable insurance broker about your level of coverage to ensure you aren’t leaving yourself and your dependents exposed if hurt in a car accident.
GET ADVICE FROM A SAULT STE. MARIE ACCIDENT CLAIMS LAWYER
Sault Ste. Marie accident claims lawyers at Feifel Gualazzi specialize in helping car accident victims get the full range of financial support they need. If you’ve been hurt in a car crash, your injuries and the complications they cause can quickly become overwhelming. Navigating the no fault insurance system and dealing with the insurance company can add to your stress level. Why go it alone when you can rely on our legal professionals to take care of all the details?
If you or a loved one has been injured in a car, ATV, motorcycle, bicycle, pedestrian, or snowmobile accident, reach out to a https://www.soolaw.ca/contact at Feifel Gualazzi. We’ll help you determine how much you are entitled to claim as compensation for your injuries and losses. Our Sault Ste. Marie law firm serves Blind River, Elliot Lake, and surrounding communities in Algoma District.