2026 SABS Overhaul: This Is What Ontario Drivers Need To Know
Picture this: you’re on your way home, thinking about dinner plans or your weekend, when suddenly a collision turns your life upside down. In those moments, no one is flipping through their insurance policy—but that policy is exactly what determines how much support you and your family will have in the days, weeks, and even years ahead.
Until now, Ontario auto insurance policies have included a standard bundle of benefits. That’s about to change. Starting July 1, 2026, Ontario is rewriting the rules on auto accident benefits under the Statutory Accident Benefits Schedule (SABS), shifting auto insurance to a build-your-own model for most accident benefits. These changes won’t just affect drivers—they will directly affect passengers, pedestrians, and cyclists injured in a motor vehicle accident as well.
The catch is simple but significant: some of the protections that used to come standard—like income replacement, caregiver benefits, and even death and funeral expenses—will no longer be automatic. Instead, you’ll need to make active choices at renewal to add them to your policy.
That means one thing - the decisions you make before an accident could define what help you and your family get after one.
Who gains—and who’s at risk
If you tailor your coverage wisely, you can lower premiums while keeping protections that fit your life and work. For example, someone with strong workplace disability benefits might choose different income replacement limits than a self-employed worker who depends entirely on their own earnings.
One welcome change arriving in 2026 is that your auto insurer will become the first payer for medical and rehabilitation expenses. Right now, many people must go through their workplace health plan before accessing auto benefits—but under the new rules, that extra step disappears. The result should be faster approvals, fewer delays, and easier access to treatment when you need it most.
But there are risks. If you decline optional benefits without thinking it through, a crash could leave you with no income replacement, no caregiver or housekeeping support, and no death or funeral coverage—because those protections won’t exist in a bare-bones policy.
This gap is especially critical for pedestrians and cyclists, who often rely on a household’s auto policy for coverage. If that policy doesn’t include optional benefits, the support simply won’t be there. In some cases, their only option will be to sue the at-fault driver directly for losses that SABS used to cover.
Another important consideration is that optional benefits may only apply to named insureds, spouses, dependents, and listed drivers. If someone outside that group is injured in your car, they may not be entitled to those extras—even if you’ve paid for them.
What to Do Before Your 2026 Renewal
The 2026 changes will apply whether you’re renewing your existing policy or buying a brand-new one:
Renewals: If you already have auto insurance, the first renewal after July 1, 2026 will trigger the new system. Your insurer will provide a new endorsement (such as OPCF 47R) that lists all optional benefits, and you’ll have to decide which ones to keep.
New Policies: If you’re purchasing a new policy after July 1, 2026, the same rules apply. By default, you’ll only receive the mandatory benefits (medical, rehab, attendant care) unless you specifically elect the optional ones.
In short: no matter if it’s a renewal or a new policy, you’ll face the same choices—and those choices will shape the protection available to you and your family after an accident.
With that in mind, here’s how to prepare before 2026:
Audit your safety net. Review your employer disability plan, emergency savings, dependents, and whether anyone relies on your unpaid caregiving. Use this to decide on options like income replacement, caregiver, and housekeeping.
Pick limits, not just checkboxes. If you have a broker, make sure they’re fully up to speed on the 2026 changes and the specifics of your situation optional benefits come with limit choices. Ask your broker what the default includes—and what it doesn’t—before finalizing.
Review the forms. Watch for the OPCF 47R endorsement (and related updates) in your renewal package, and double-check that your elections were recorded properly.
Consider your household. Even if you feel covered, think about others in your home. If your teen cycles, or your partner doesn’t drive, ensure your policy’s optional benefits reflect the risks your family actually faces.
Things to Keep in Mind
Priority disputes. The new OPCF 47R endorsement replaces the old OPCF-47 and changes how optional benefits work in “priority of payment” situations. Applying to the wrong insurer first could cut off access to optional benefits. Always confirm with your insurer or lawyer before submitting a claim.
Premium surprises. While the government pitched these reforms as a way to give drivers choice and potentially lower premiums, those who elect optional benefits may actually see premiums rise—or at least stay flat. On the other hand, declining them could shift costs to tort claims, public programs, or out-of-pocket expenses.
Transitional rules. If your policy is in force before July 1, 2026, your current benefits may continue until renewal—unless you agree in writing to reduce them.
Bottom Line for Ontario Drivers
The 2026 SABS amendments will impact every renewal and every new policy in Ontario. Auto insurance is moving from a one-size-fits-all model to a “choose-your-own” approach. That means more control—but also more responsibility.
Taking a few extra minutes at renewal to make informed choices could be the difference between financial security and serious hardship after an accident.
