Accident Benefits in Ontario: What They Cover and Why They Matter

What’s Changing in Ontario?

Effective July 1, 2026, Ontario is updating Accident Benefits coverage.

These updates are intended to give you more flexibility to tailor your coverage according to your needs—making it even more important to understand what’s included in your policy and what options are available.

A motor vehicle accident doesn’t just damage your vehicle—it can impact your income, your health, and your ability to manage everyday life. That’s where Accident Benefits come in. Offered in every Ontario auto insurance policy, they provide financial and medical support so you can focus on recovery instead of worrying about how to pay for it.

Whether it’s covering physiotherapy, replacing lost income, or helping with care at home, these benefits are designed to keep your life moving forward, no matter who was at fault.

In simple terms, Accident Benefits can help pay for:

• Medical and rehabilitation costs
• Lost income if you’re unable to work
• Help at home or caregiving support
• Long-term care for more serious injuries

Learn more about all accident benefits.

What Coverage Is Included?

Mandatory Coverage (Included in Every Policy)

These core benefits are automatically included in your Ontario auto insurance:

• Medical and Rehabilitation Covers treatment such as physiotherapy, diagnostic testing, and reasonable and necessary home or vehicle modifications.
• Attendant Care Helps pay for personal support at home or in a long-term care facility if injuries make it difficult to manage daily activities independently.

These additional optional coverages can significantly increase your level of financial protection, depending on your needs:

• Income Replacement Benefit Replaces part of your income if accident-related injuries prevent you from working.
• Non-Earner Benefit Provides weekly payments if you do not have any employment income and your injuries prevent you from carrying out normal activities.
• Caregiver Benefit Covers costs for someone to care for dependants if you are unable to do so due to an injury.
• Dependant Care Benefit Optional coverage that helps employed individuals cover extra childcare or caregiving costs during recovery.
• Housekeeping and Home Maintenance Benefit Assists with tasks like cleaning or yard work if injuries prevent you from doing them.
• Death Benefits Provides a lump sum payment to surviving family members.
• Funeral Benefits Helps to cover the funeral costs of someone who passes away due to a motor vehicle accident.
• Damage to Personal Items Helps to cover the cost to repair or replace personal items damaged in an accident i.e. prescription eyewear, medical aids, clothing, etc.
• Lost Educational Expenses Helps to cover costs you’ve lost if you cannot attend school or an education program due to motor vehicle accident-related injuries.
• Indexation Certain weekly benefit payments and monetary limits will be adjusted on an annual basis to reflect changes in the cost of living.
  
  

How These Changes Affect Current Policyholders  

If you already have an Ontario auto insurance policy, the July 1, 2026 changes do not automatically reduce or remove the Accident Benefits coverage you currently have. 

When you renew your policy, your existing coverage will continue as is unless you choose to remove or change any optional Accident Benefits. In other words, if you're satisfied with your current level of protection, no action is required.

Starting July 1, 2026, all Accident Benefits except Medical, Rehabilitation, and Attendant Care will become optional. This gives drivers more flexibility to customize their coverage based on their individual needs and circumstances.

While your current coverage can remain in place, renewal is a good opportunity to review your policy and ensure it still reflects your lifestyle, family situation, income, and financial priorities. If your needs have changed since you last reviewed your coverage, you may wish to explore different options available to you.

Take the Next Step

Not all drivers are the same, and the right level of coverage depends on your personal situation.

If you're unsure what accident benefits are here are resources available.:

• Learn more about the different types of benefits available or check out our FAQs
• Explore our CAA Insurance Needs Assessment Tool 
• Connect with a Licensed Insurance Agent or Broker before making changes to your coverage

Taking a few minutes to review your coverage today can make a meaningful difference when you need it most.

This content is intended to provide general information only and is not intended to provide legal or professional advice, or to be relied on in any dispute, claim, action, demand or proceeding. CAA Niagara does not accept liability for any damage or injury resulting from reliance on this information.

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