Statutory Accident Benefits
Important changes to your auto insurance coming July 1st, 2026.
What are Statutory Accident Benefits (SABs)?
Statutory Accident Benefits are a part of every auto insurance policy in Ontario. It pays for your own injuries and losses after a car accident, no matter who caused the accident.
What’s changing:
Starting July 1, 2026, irrespective of renewal date, Ontario is making changes that will give you more options and control over your coverage by making some currently mandatory accident benefits, optional.
1. Change in the definition of who is covered under the auto policy:
For optional accident benefits, definition of covered persons will be:
- The named insured;
- The spouse of the named insured;
- The dependants of the named insured and of the named insured’s spouse; and
- The persons specified as drivers of the insured automobile
2. Change in first payor rules:
Effective July 1, 2026, auto insurers will become the primary payor for medical and rehabilitation expenses related to auto accident injuries that are not typically covered by OHIP (such as crutches and physiotherapy). This means these costs will be covered by your auto insurance (excluding medication) before any payments are made under a supplementary health plan, such as workplace benefits..
This makes the process simpler, faster, and supports claims being settled more efficiently.
What auto coverage is staying the same?
Mandatory Accident Benefits will remain included in all policies, ensuring essential protection continues. These benefits are “no-fault” which means they are available to you regardless of who caused the accident:
1. Medical and Rehabilitation Expenses – Coverage for medical care, therapy, and rehabilitation needed after an accident (e.g., specialist visits, physiotherapy).
2. Attendant Care – Assistance with daily activities such as bathing, dressing, and personal care if you‘re injured.
You still have the option to purchase additional or increased benefits and coverages, such as supplementary medical, rehabilitation and attendant care, dependant care and indexation benefits.
What auto coverage is becoming optional?
Although your current policy will renew with the same coverage and limits, some accident benefits will become optional. Upon your renewal, you will be able to choose whether to keep or remove these benefits based on your needs and the protection you want for your family.
The following auto insurance accident benefits will become optional:
- Income replacement: Helps replace income you or another covered person may lose because of an auto accident.
- Non-earner: If you or another covered person is a student or unemployed and an auto accident keeps you from leading a normal life, this benefit can provide financial support while you recover.
- Caregiver benefits: Helps cover caregiving expenses if you or another covered person is injured in an auto accident and can no longer provide care for a household member, such as a child or aging parent, who needs it.
- Lost educational expenses: If an auto accident keeps you or another covered person from attending school or an education program, this benefit can help cover the costs you have lost.
- Expenses of visitors: Helps cover reasonable and necessary expenses of visitors, such as a sibling or parents, if you or another covered person is injured in an auto accident.
- Housekeeping and home maintenance: Helps cover costs if you or another covered person is unable to perform the housekeeping and home maintenance tasks normally done before an auto accident.
- Damage to personal items: Helps cover the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids, etc.) damaged in an auto accident.
- Death benefits: Compensates some family members if you or another covered person die due to an auto accident.
Funeral benefits: Helps cover some funeral costs if you or another covered person dies due to an auto accident.
Who is covered under Statutory Accident Benefits (SABS)?
Effective July 1, 2026, who is covered under your policy for optional Accident Benefits will change, regardless of renewal effective date.
The newly optional benefits under your auto policy will only apply to:
- The named insured
- The spouse of the named insured
- Dependents of the named insured and of the named insured’s spouse
- Persons specified in the policy as drivers of the automobile
Prior to this change, coverage may have extended more broadly depending on the circumstances. Under the reform, the eligibility is more clearly defined and tied directly to the named insured and listed drivers for optional Accident Benefits.
Common Questions (FAQ):
1. Why would someone choose to add or remove or decline optional benefits?
Starting July 1, 2026, you can tailor your auto insurance to fit your personal situation. That means you will not have to pay for optional benefits you do not need, and you can choose to add optional benefits that provide extra protection for you and your family.
2. Will these changes affect all drivers / types of auto insurance policies?
Yes, the changes to accident benefits options will impact all drivers and auto insurance policies in Ontario, including personal private passenger, commercial, motorcycle, snowmobile, and all-terrain vehicle policies.
3. Will passengers in my car still be covered if I opt-out of certain coverages?
As of July 1, 2026, optional accident benefits coverage will only apply to the named insured, their spouse, dependants of the named insured and of the named insured’s spouse, and listed drivers.
Passengers injured in an auto accident will not be covered for optional benefits unless they fall into one of these groups under an auto insurance policy that includes optional benefits. However, standard accident benefits will still apply to all passengers.
4. What happens to uninsured pedestrians and cyclists?
Mandatory medical, rehabilitation and attendant care benefits may apply. Optional benefits only apply if the person is the named insured, their spouse, their dependant or a listed driver under a policy that includes optional benefits.
5. Must all vehicles on a policy carry the same benefits?
Yes, all vehicles on a policy must have the same accident benefits. A separate policy is required to choose different benefits for different vehicles.
What steps should I take?
- Review your current coverage (if you are an existing customer): Know what benefits you already have today through your auto insurance policy.
- Think about your needs: Consider which coverage is right for you.
- Speak to your Allen Insurance Group representative: They can help explain your options.
Disclaimer
The descriptions of the statutory accident benefits on this page are a summary of the statutory accident benefits in Ontario Regulation 34/10 (the “SABS”). Do not rely on this summary alone. For full details, refer to the SABS or speak with your insurer, agent, or broker.