If you’ve ever been in a car accident in Ontario, you’re probably familiar with the Statutory Accident Benefits Schedule or SABS. It’s a set of mandatory benefits included in every auto insurance policy, covering things like income replacement, medical care, and even housekeeping if you need it.
But as of July 1, 2026, Ontario’s Statutory Accident Benefits Schedule (SABS) is getting a major overhaul. The reforms will give drivers more choice by making many previously mandatory benefits optional. Personal Injury Lawyer Brenda Hollingsworth, Co-Founder of Auger Hollingsworth Accident & Injury Lawyers has significant concerns about the reforms. She says, “More choice sounds like a good idea, but the problem is that the people who are likely going to choose not to purchase optional benefits are those who are low-income individuals. These changes could leave vulnerable accident victims, particularly those who can’t afford to pay for extra benefits, without the critical coverage they need.”
From mandatory to optional benefits
This shift away from mandatory to more optional benefits, requires consumers to actively choose to purchase these optional benefits, rather than simply opting out of them.
The only mandatory benefits will be medical, rehabilitation, and attendant care benefits. The amendments which take effect in 2026 will restrict optional benefits to:
- The named insured
- Spouse of the named insured
- Dependents of the named insured
- Any persons specified in the policy as drivers of the insured automobile
Consumers need to be well-informed about the changes and the implications of choosing different benefit levels. It could lead to lower premiums for some, but it could also leave consumers with critical gaps in coverage. Hollingsworth says, “What looks like a cost-saving measure today, could become a costly gap in support when an accident happens.”
Consulting with an experienced Toronto car accident lawyer can help ensure you fully understand your coverage and make informed decisions that protect you in the long term.
Income Replacement Benefits gap
One of the most significant changes relates to the Income Replacement Benefit. Today, if you’re injured in a car accident in Ontario, you’re entitled to up to $400 a week in income replacement benefits, no matter who was at fault. You can even bump that up to $1,000 a week if you purchase extra coverage.
But under the new rules, that safety net disappears unless an individual pays extra to opt-in. Brenda Hollingsworth says, “That could be a problem for people who do not have a long-term disability policy to cover them. Self-employed individuals and those with part-time jobs who don’t have benefits, may have 16 weeks of employment insurance, but otherwise they are left to the public system. Whether they need income replacement coverage is something consumers will have to think about for the first time in 30 years.”
Cyclists and pedestrians would also be vulnerable under the new rules because if they were injured in a collision with a motor vehicle and they don’t have their own policy or live with someone who has a policy, they will be stuck with the minimum without any optional benefits.
Potential for Increased Litigation
When it was first introduced, the idea behind no-fault auto insurance was that it would reduce lawsuits by ensuring injured individuals received help quickly by not taking the matter to court. But with pending SABS reforms making key accident benefits optional and restricting those benefits to certain individuals, that safety net is wearing thin. Hollingsworth says, “This change in accident benefits coverage will, without a doubt, result in more lawsuits. Because people who don’t receive income replacement benefits for example, will be more likely to sue for their loss of income. People are entitled to be compensated for their injuries if they weren’t at-fault for the accident, so they will pursue compensation in a lawsuit.”
People who may not pursue litigation under the current system today because they are adequately covered will need to take the case to court. Hollingsworth adds, “I think the SABS reforms risk burdening an already overburdened court system.”
Get the support you deserve
A year from now, the new Statutory Accident Benefits Schedule may take many people by surprise. Drivers may assume they’re covered, only to discover after a collision that they’re not, leaving many people exposed. That’s where an experienced personal injury lawyer like Brenda Hollingsworth becomes essential. She says, “I understand the complexities of the new rules and can help you navigate the system, whether you’re injured today or after the reforms take effect.”
From ensuring you receive every benefit to which you are entitled, to fighting for your rights in court, Brenda Hollingsworth and her team at Auger Hollingsworth Accident & Injury Lawyers are here to help you every step of the way. The initial consultation is free of charge.
Don’t wait until it’s too late – know your rights and get the support you deserve.
Contact Brenda Hollingsworth at (647) 691-6282, by email at brenda@ahinjurylaw.com, by visiting their website, or Instagram.