On July 1, 2026, Ontario made one of the biggest changes to auto insurance in decades. Most drivers noticed it only as a renewal letter. But the people most affected may not be drivers at all. Cyclists, pedestrians and passengers can now find themselves with far less coverage after a crash than they would have had a year ago.

What stayed the same

Every Ontario auto policy still includes standard medical, rehabilitation and attendant care benefits. These cover things like physiotherapy, treatment and help with personal care after a serious injury.

What became optional

Many benefits that used to be automatic are now add-ons that policyholders choose to buy. According to the Financial Services Regulatory Authority of Ontario, these include:

● Income replacement benefits, for people who can't work after a crash

● Non-earner benefits

● Caregiver benefits

● Housekeeping and home maintenance benefits

● Lost educational expenses

● Death and funeral benefits

The bigger change: who is covered

Even when someone buys these optional benefits, they now apply to a narrower group. Optional benefits cover the named insured, their spouse, their dependants and drivers listed on the policy.

Why this matters in Toronto

Thousands of Torontonians don't own a car. They walk, bike, take the TTC and use rideshares. For them, the old system offered a safety net through someone else's policy. Under the new rules, a serious injury could mean months of lost income with no accident benefit to replace it.

What you can do now

1. Check your own policy. If you own a car, review which optional benefits you have. Policies renewed automatically with existing coverage, but the rules on who is covered changed for everyone.

2. Look at your other coverage. Workplace disability insurance, private disability plans and life insurance may help fill gaps. Know what you have before you need it.

3. Talk to your household. If your spouse or dependants rely on your policy, make sure the coverage still fits your family.

After a crash, the lawsuit matters more

With fewer no-fault benefits available, a claim against the at-fault driver can be the main way an injured cyclist or pedestrian recovers lost income. Those claims have their own deadlines, including written notice within 120 days and a two-year limitation period.

Experienced personal injury lawyers in Toronto are already seeing how these changes play out for clients. If you or someone in your family has been hurt, getting advice early can help you understand which benefits you still have and what other compensation may be available.