2026 Auto Policy Shake-Up Puts You in Control (But Requires Action Today)

The Ontario auto insurance system is set for one of its most significant changes in years, presenting a crucial opportunity for drivers to review their coverage and save money. Effective July 1, 2026, the provincial government will unbundle many of the mandatory accident benefits, shifting to a more customizable “a la carte” model. This “shake-up” is designed to give you more choice and potentially lower your premiums by avoiding paying for benefits you already have through workplace or personal health plans (FSRA, 2026).

1. The Core Change: Accident Benefits Become Optional

Currently, the Statutory Accident Benefits Schedule (SABS) is a fixed package included with every auto policy in Ontario. Starting in 2026, many of these benefits will become optional. The minimum Medical, Rehabilitation, and Attendant Care benefits will remain mandatory to ensure everyone has access to essential recovery support. All other accident benefits will become optional (FSRA, 2026).

The Goal: To reduce overlap with other insurance coverage and make premiums more flexible.
For example, if you have a robust long-term disability plan through your employer, you might choose to opt out of the standard auto Income Replacement Benefit (IRB) to lower your premium. However, a broker’s advice is crucial here—opting out without reviewing your external plan could leave a costly gap.

2. How to Lower Your Premiums NOW (Before the 2026 Changes)

While the new optionality is still a year away, your best strategy for immediate savings is to leverage the discounts and options currently available. As local Insurance Brokers in Ontario, AiA can help you maximize these opportunities:

• Bundle and Save: Combining your Auto Insurance with your home or tenant policy often results in the single largest discount, with major insurers offering savings that often reach 10-15% on each policy. One leading insurer reports their bundled clients in Ontario saved an average of over $1,400 (Intact Insurance, TD Insurance).
• Increase Your Deductible: Choosing a higher deductible (e.g., going from $500 to $1,000) will lower your annual premium. You are taking on more risk, but if you have savings to cover the deductible, this is a quick win.
• Install Anti-Theft Devices: With rising auto theft in the GTA and across Ontario, many insurers offer discounts for verified anti-theft systems like GPS trackers or immobilizers.
• Usage-Based Insurance (UBI): Consider a UBI program (often a mobile app) that monitors your driving habits (speed, braking, time of day). Safe drivers can qualify for significant discounts, sometimes up to 25% (Intact Insurance).
• Review Your SABS Limits: You can already increase your mandatory Medical, Rehabilitation, and Attendant Care benefits to $130,000 or $1,000,000. While this increases your premium slightly, it’s an essential discussion to ensure your coverage is adequate for a serious accident.

3. Your Next Step: Talk to a Local Broker

The 2026 changes will usher in an era where customized policies are the norm. Having an expert is no longer just a convenience—it’s a necessity. We can analyze your existing workplace benefits and personal budget to tailor a policy that removes redundant coverage for savings, while ensuring your family’s financial security is never compromised.

Don’t wait for 2026 to start saving. Contact AiA Insurance Brokers Ontario today for a comprehensive, no-obligation quote and policy review. We serve Toronto, Mississauga, Brampton, and all communities across Ontario.

Talk to us for more details, we are available to chat, talk or you can contact us through the form.

Citations

FSRA
https://www.fsrao.ca/industry/auto-insurance/changes-statutory-accident-benefits-coverage-ontario-july-1-2026

Intact
https://www.intact.ca/en/personal-insurance/vehicle/bundle
https://www.intact.ca/en/personal-insurance/vehicle/save-on-car-insurance/ontario
https://www.tdinsurance.com/products-services/auto-home-insurance