What Do Changes to Commercial Auto Insurance in Ontario Mean for Your Business?

What Accident Benefits Are Becoming Optional in Ontario on July 1, 2026?

Currently, accident benefits are automatic inclusions in your Ontario commercial auto insurance policy. 

Only medical care, rehabilitation, and attendant care benefits will remain mandatory under Ontario law.

After July 1, the following will become optional – meaning you’ll need to notify your insurance broker you wish to opt out of them before your policy renews. Otherwise, they will automatically be included in your policy when it does renew:

• Income replacement: Provides up to 70% of gross income up to $400 per week if injuries keep you off work.
• Non-earner benefits: Provide $185 per week if you don’t qualify for income replacement.
• Caregiver benefits: Financial support if a serious injury prevents you from caring for a child or dependent.
• Death and funeral benefits: Your spouse may receive up to $25,000 if you’re fatally injured in a work-related vehicle accident, and each of your dependents or children up to $10,000. Another $6,000 is allotted to pay for your funeral expenses.
• Miscellaneous benefits: Cover damaged clothing, prescription eyewear, medical devices, housekeeping (if you need to hire someone to maintain the upkeep of your home because of your injuries), visitor expenses, and lost educational expenses. 

One Other Important Change: Insurers Become the “First Payer”

The new regulations also designate auto insurers as the “first payer” for medical treatment following an accident. Previously, injured drivers often had to exhaust their private health insurance or employer group benefits before their auto insurer would step in.

This change is actually a consumer-friendly fix. It means your auto insurer covers your medical costs first, so you’re not burning through your work benefits for injuries that happened on the road.

What Does a Commercial Auto Insurance Policy in Ontario Include?

Commercial auto insurance policies must include mandatory or statutory provincial coverages. As of July 1, 2026, those coverages in Ontario are:

Third-Party Liability

Covers you if you’re at fault for an accident that causes property damage, injury, or death to another person. It pays for their medical costs, vehicle or property repairs, and any legal costs if you’re sued. Ontario requires a minimum of $200,000 in third-party liability, but most brokers recommend carrying significantly more. 

Accident Benefits (Medical Rehabilitation and Attendant Care) 

Covers medical expenses not included under your provincial health care plan. Attendant care benefits pay for someone to help with daily tasks – like bathing, dressing, or personal care – if your injuries require it. This coverage is typically capped at $65,000 for non-catastrophic injuries and $1 million for catastrophic injuries. 

Uninsured Auto

Protects you if you’re hit by an uninsured driver or involved in a hit-and-run. Covers vehicle damage and injuries to you and your passengers. Ontario requires a minimum of $200,000. 

Direct Compensation-Property Damage (DCPD)

If your commercial vehicle is damaged in a not-at-fault accident, DCPD lets you file the claim directly with your own insurer rather than going through the at-fault driver’s insurer. 

Is There an Upside to Opting Out of Accident Benefits in Ontario?

The Ontario Government framed these changes as a way to “allow drivers to find a policy that fits their needs.” And on the surface, the ability to reduce your premium sounds appealing.

But here’s the reality: the estimated savings from opting out are around 5% on your annual premium, which works out to a few dollars a month for most commercial vehicle owners. That’s a modest discount in exchange for potentially significant gaps in coverage if you’re injured in an accident.

If you’re off work for weeks or months, income replacement isn’t a nice-to-have. It’s what keeps your business afloat.

We recommend you speak to a licensed Zensurance broker before making any changes to your coverage at renewal. 

Who Is Most at Risk?

Commercial vehicle owners who opt out of accident benefits are putting themselves and any other drivers listed on the policy at financial risk. This is especially true for:

• Sole proprietors who have no employer benefits to fall back on
• Self-employed professionals without disability coverage elsewhere
• Gig workers and side hustlers who depend on driving income
• Employees listed on a business’s commercial auto policy

If you don’t have a separate income protection or disability plan, the optional accident benefits in your commercial auto policy may be your only safety net.

What Should You Do Before July 1, 2026?

If you’re a Zensurance client with commercial auto insurance in Ontario, your policy will renew automatically with your existing coverage intact. You don’t need to do anything to keep your current accident benefits – they stay unless you actively opt out.

Before making any changes, ask yourself:

• Do my personal health benefits or employer group benefits already cover injuries from a vehicle accident?
• Do I have a separate disability or income protection plan?
• If I couldn’t work for two months due to an accident, what would cover me?

If you’re unsure, contact a Zensurance broker before your renewal date. A quick conversation could save you from a costly gap in coverage.

Frequently Asked Questions About Commercial Auto Insurance in Ontario

What accident benefits are becoming optional in Ontario commercial auto policies on July 1, 2026?

Starting July 1, 2026, income replacement, non-earner benefits, caregiver benefits, death and funeral benefits, and miscellaneous benefits (including housekeeping, visitor expenses, and lost educational costs) are becoming optional in Ontario commercial auto policies. Only medical care, rehabilitation, and attendant care benefits remain mandatory. 

How much money can I save by opting out of optional accident benefits?

The savings are modest – estimated at around 5% of your annual commercial auto premium, which typically amounts to a few dollars per month. For most commercial vehicle owners, the potential out-of-pocket costs from an injury far outweigh those savings. It’s worth reviewing your full coverage picture with a broker before deciding. 

Can I add optional accident benefits back after opting out? 

Yes. You can add optional accident benefits back to your policy at the midterm point. However, you may need to pay a pro-rated premium for those coverages from the date you add them. 

What happens to my commercial auto policy at renewal after July 1, 2026?

Your policy will renew automatically with your existing coverage and limits – nothing changes unless you and your broker agree in writing to remove or modify benefits. If you’re thinking about opting out, review whether your personal health plan or employer benefits already provide similar protection before making that call. 

Who needs to worry most about these changes?

Sole proprietors, self-employed workers, gig workers, and any commercial vehicle operator without a separate disability or income protection plan should pay closest attention. If your commercial auto policy is your only income safety net, opting out of accident benefits carries real financial risk. 

Get the Right Commercial Auto Insurance for Your Ontario Business 

The rules are changing but your protection doesn’t have to. 

Get a free commercial auto insurance quote to suit your business quickly and easily by filling out our online application in less than 5 minutes.

Our team of licensed insurance brokers will get the right coverage to suit your needs and budget, answer your questions, and issue your policy documents in 48 hours or less.