Ontario Government Making Major Changes to Accident Benefits
Last week, the Ontario Government announced significant changes to statutory accident benefits regime in Ontario. The changes, which will take effect on July 1, 2026, will significantly change the benefits available to Ontarians as part of the standard insurance policy.
At present, a person who is injured in Ontario is eligible for a variety of benefits regardless of fault, 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.
Effective July 1, 2026, the only mandatory coverage required will be the Medical, Rehabilitation and Attendant Care Benefit. The rest of the coverages will be available at an additional cost.
The government is making this change, purportedly, to reduce the insurance premiums while allowing for consumer choice. While it may ultimately be successful in reducing premiums slightly over the short term, historically, this has never worked. Rather, it will result in many Ontario motorists being left without essential benefits while they are going through rehabilitation.
The reason for this is that most Ontarians seek out the most affordable car insurance option, and seldom look at the coverage available. This issue is exacerbated by the fact that many motorists obtain their coverage through online tools that do not explain the nuances of available coverage to the end user.
In the event that you have a generous benefits package through your work, the additional benefits, such as income replacement benefits, might not be as significant in the event that you are unable to work. However, if you do not have short or long-term disability, you will be reliant on employment insurance in the event of an inability to work.
Further, it will most likely be those who are struggling financially will opt not to get optional benefits. This means that they run the risk of being left without a source of income if injured and being unable to work.
Finally, pedestrians will be at greater risk than ever before. If they are struck by a party without optional benefits, they will be stuck without a source of income despite not being at fault for a collision.
The financial hardship that collision victims face is exacerbated by the fact that the court system is over-burdened, resulting in even the most deserving claimants having their cases delayed for years. There is a very real possibility that collision victims could face financial ruin over a crash that was not their fault.
The government is dressing this up as a victory for consumer choice. However, it ultimately will negatively impact accident victims – the very people statutory accident benefits are designed to protect.
About the Authors
The son of a grocery store clerk, Kevin grew up outside of Perth, Ontario. He credits his humble beginnings with the development of his underdog mentality, an approach he has carried into his legal career.
He attended McMaster University for two years before being granted early admission to Osgoode Hall Law School. After being called to the bar in 2008, Kevin began practising law in Hamilton before joining a leading Toronto litigation firm, representing Canada’s largest insurance companies on personal injury actions. “I didn’t find it fulfilling,” Kevin recalls. “I was helping companies save money, when what I wanted to do was help the people going up against these major corporations.” Since joining Oatley Vigmond, Kevin has used his insurance-industry experience to protect his clients and recover the compensation they deserved. He’d been at Oatley Vigmond for two months when he settled a matter for a client at a mediation. “You felt the burden of the litigation, and her injuries, lifting off her. I wanted to help even more people experience the relief of having their uncertainty lifted.’”