Byproducts of the Changes to the Statutory Accident Benefits regime in Ontario

Effective July 1, 2026, the Statutory Accident Benefits (“SABS”) scheme in Ontario will undergo significant changes, which will directly impact those involved in automobile accidents and their insurer.

No longer will every Ontarian covered by an automobile policy have income replacement benefits, or benefits to cover caregiver, housekeeping or home maintenance expenses, among others. 

The impact of these changes, which were implemented to provide more choice to Ontario consumers, may lead to more actions being commenced against drivers, insurers and insurance brokers, as well as increasing the potential exposure on defendant drivers. 

Not all SABS benefits will become optional; all automobile policies will still require mandatory minimum benefits for medical, rehabilitation, and attendant care coverage. 

Where in the past all potential claimants, including pedestrians, cyclists and passengers injured as a result of a motor vehicle accident, had coverage to cover short periods of time off from work, they may now need to seek recovery for these lost wages through a lawsuit, no matter the quantum. Significantly, as pedestrians, cyclists and passengers will no longer have access to these optional coverages, their only recourse to recover the expenses and losses they incur are through a tort action. 

For insurers defending actions in tort, not only may there be more claims to defend, but the quantum of individual claims are also likely to increase, as claimants will not have access to some minimal benefits, both increasing the potential exposure to those heads of damages, but also potentially prolonging the exposure given the lack of supports for claimants. 

Another potential unintended byproduct of the changes to the SABS are increased claims against insurance brokers, especially in single vehicle accidents, where resorting to a tort claim is potentially not available. 

Overall, the changes in the SABS may bring more choice to Ontario consumers, but along with that choice, increased legal disputes and greater exposure to tort defendants. 

Should you have any questions or need further information about this legislative update, please contact Alex Morrison.

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