Ontario Drivers Must Now Opt In to Keep Wage Loss Coverage After July 1

Ontario drivers who do not actively opt in to optional benefits before July 1, 2026, will lose access to income replacement and other critical financial supports after an accident.

Starting that day, the province’s auto insurance system will no longer guarantee wage loss coverage. The $400 per week in income replacement—once automatic for anyone injured in a collision—will disappear from new policies unless drivers specifically choose to add it and pay extra for it.

This change is part of Ontario Regulation 383/24, which amends the Insurance Act and dismantles the long-standing Statutory Accident Benefits Schedule (SABS). Only three benefits remain mandatory: medical, rehabilitation, and attendant care. Everything else, including caregiver benefits, non-earner payments, and death and funeral benefits, shifts to optional status.

For drivers renewing existing policies, current coverage carries forward unless they opt out in writing. But for anyone buying a new policy after July 1, only the bare minimum applies by default. You must opt in to add back the protections most people assumed were standard.

Self-employed workers, students, retirees, stay-at-home parents, and low-income earners are especially vulnerable. Without employer disability plans, many rely on these benefits to cover living expenses during recovery. If they choose the cheapest policy, they may find themselves without a safety net.

Passengers, cyclists, and pedestrians face risk too. Optional benefits only cover the named insured, their spouse, dependents, and listed drivers. If you’re injured in a car whose owner opted out, you won’t access those benefits—even if you’re at fault. Your only recourse is a tort claim, which offers no guarantee and can take years.

Legal experts warn this could increase lawsuits. The old no-fault system reduced litigation by covering core costs automatically. With fewer default protections, more victims may be forced into court to recover what their policies no longer provide.

Insurers must now be the first payer for accident-related medical and rehabilitation costs, excluding medication. That means your auto policy covers non-OHIP treatments upfront, preserving private or workplace health benefits for other needs. But this benefit only matters if you have active coverage when an accident occurs.

You can change your benefit selections at any time. But retroactive changes are not allowed. The coverage on your policy the day of the crash is the only coverage that counts.

FSRA introduced the OPCF 47R endorsement to close a loophole from the old system: if a claim was processed under someone else’s policy, you could lose access to optional benefits you paid for. Now, your purchased benefits follow you, even in those situations.

The government promoted these changes as a way to lower premiums. But industry analysts say savings from dropping optional benefits will be minimal—just a few dollars a month—because accident benefits make up a small slice of overall premiums. Meanwhile, repair costs, theft, and inflation keep pushing prices up.

More than 11 million Ontario drivers are affected. Newcomers buying insurance for the first time may not understand what they’re skipping. Without familiarity with Canadian benefit systems, they could go dangerously underinsured.

FSRA, the Insurance Bureau of Canada, and brokers launched an education campaign in April 2026 to help drivers understand the changes. But the burden now falls squarely on individuals to make informed choices—because if you don’t opt in, the support won’t be there when you need it.