Key Takeaways
- Ontario’s Statutory Accident Benefits Schedule (SABS) will shift many benefits from mandatory to optional starting July 1, 2026.
- Changes may disadvantage low-income individuals who cannot afford additional coverage, leading to potential gaps in vital benefits.
- The reforms could lead to increased litigation as individuals seek compensation for injuries due to reduced coverage.
Changes to Accident Benefits in Ontario
Ontario’s Statutory Accident Benefits Schedule (SABS) will undergo significant changes on July 1, 2026, transitioning many benefits from mandatory to optional. Personal Injury Lawyer Brenda Hollingsworth warns that while this allows for more choices, it may disproportionately impact low-income individuals who cannot afford optional coverage.
The essential benefits, such as medical, rehabilitation, and attendant care, will remain mandatory, but other previously guaranteed benefits will become optional. These changes require consumers to actively choose to purchase supplementary benefits, rather than simply declining them. As a result, individuals must be informed about the implications of their selections, as what might seem like a cost-saving measure could lead to critical gaps in coverage.
One of the most notable changes involves Income Replacement Benefits. Currently, injured individuals can claim up to $400 per week for income loss regardless of fault, with the possibility to increase this amount to $1,000 through additional coverage. However, the revised rules will eliminate this safety net unless policyholders opt to pay for it, creating challenges for self-employed and part-time workers who lack comprehensive disability insurance. Brenda Hollingsworth highlights that this shift forces consumers to reconsider their insurance needs for the first time in three decades.
Cyclists and pedestrians will also be at risk under the new rules, as those without their own auto policy or residing with someone who has one will face limited benefits after an accident.
Moreover, the reforms are expected to increase litigation rates. The original intent of no-fault insurance was to reduce lawsuits by facilitating quicker support for injured parties. However, with key benefits now optional and restricted to specific individuals, many may resort to legal action to seek compensation for their losses, potentially overwhelming the court system.
As the effective date approaches, many drivers may assume they are adequately covered, only to find themselves exposed after an accident. Brenda Hollingsworth emphasizes the importance of obtaining legal counsel to navigate these upcoming changes and ensure that individuals fully understand their coverage needs. By working with an experienced personal injury lawyer, individuals can secure their rights and benefits, whether now or post-reform. Initial consultations are offered at no cost, allowing people to understand their entitlements without delay.
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