Ontario's new auto insurance rules in effect, but added flexibility comes with risk

Pat Foran explains how new changes to Ontario’s auto insurance could mean less expensive premiums for drivers, but also more risks.

TORONTO — Ontario’s new auto insurance rules are now in effect offering drivers the option of saving money on premiums, but that comes with the risk of lacking coverage when they need it.

As of today, nine types of insurance accident benefits that had been automatic in every Ontario policy are optional.

Those include income replacement, caregiver benefits, housekeeping and home maintenance, death and funeral benefits, and non-earner benefits for students and retirees, among others.

Opting out could save a driver around $75 to $100 per year in premiums, however experts say policyholders run the risk of losing thousands of dollars in income replacement benefits if they choose to do so, for example.

As part of the new rules, some who may have been previously covered by another driver’s policy such as pedestrians, cyclists and certain passengers may no longer be eligible for accident benefits.

Standard medical, rehabilitation and attendant care benefits will still be included in all auto insurance policies.

This report by The Canadian Press was first published July 1, 2026.