Ontario’s 2026 Accident Benefit Changes: What Pedestrians, Cyclists and Passengers Need to Know
- 1 day ago
- 16 min read
Starting July 1, 2026, Ontario’s auto insurance system will change in a way that will seriously affect many people injured in motor vehicle accidents.
Medical, rehabilitation and attendant care benefits will remain mandatory. However, many other Statutory Accident Benefits, such as income replacement benefits, non-earner benefits, caregiver benefits, housekeeping benefits, death benefits, funeral benefits, visitor expenses, education expenses and damage to clothing benefits, will become optional.
The change is particularly harmful for those injured by a vehicle but are not necessarily protected by their own auto insurance policy. This includes pedestrians, cyclists, passengers, e-bike riders, motorcycle passengers, and family members who assumed that accident benefits would automatically be available after a crash.
This article attempts to describe what is changing, why the changes matter, and why injured people may need to identify the correct insurance policy much earlier after an accident.
Foster Injury Law represents accident victims across Ontario, including pedestrians, cyclists, motorcycle riders, passengers, and seriously injured drivers.
Quick Answer: What Changes in Ontario Accident Benefits on July 1, 2026?
Starting July 1, 2026, Ontario auto insurance policies will still include mandatory medical, rehabilitation and attendant care benefits. However, many other accident benefits become optional, including income replacement, non-earner, caregiver, housekeeping, death, funeral, visitor, education and clothing-damage benefits.
This may create a serious coverage issue for pedestrians, cyclists, passengers and other injured people who do not have their own auto insurance policy or who are not protected under a household policy.
Medical benefits: mandatory
Rehabilitation benefits: mandatory
Attendant care benefits: mandatory
Income replacement benefits: optional
Non-earner benefits: optional
Caregiver benefits: optional
Housekeeping and home maintenance benefits: optional
Death and funeral benefits: optional
Visitor expenses: optional
Lost educational expenses: optional
Damage to clothing and personal items: optional
The most important issue will not only be whether optional benefits were purchased, but whether the injured person is one of the people protected by those optional benefits.
What Are Statutory Accident Benefits in Ontario?
Statutory Accident Benefits, often called SABS or accident benefits, are no-fault insurance benefits available after a motor vehicle accident in Ontario.
They are called “no-fault” benefits because an injured person may be entitled to claim them even if they are at fault for a collision These benefits can help pay for treatment, rehabilitation, attendant care, income loss and more.
Accident benefits are separate from a lawsuit against an at-fault driver.
For example, after a serious collision, an injured person may have:
1. An accident benefits claim through an auto insurer; and
2. A tort claim against the at-fault driver for pain and suffering, income loss, health care expenses and other damages.
The two systems interact, but they are not the same claim. A person can have urgent treatment and income needs long before a lawsuit is resolved, which is why accident benefits are so important
Are Ontario Accident Benefits Still No-Fault After July 1, 2026?
Yes. Ontario accident benefits remain no-fault benefits after July 1, 2026.
The 2026 reforms do not change the basic idea that an injured person may claim accident benefits without first proving that another driver was at fault. However, the reforms may change which benefits are automatically available and which benefits are only accessible if optional coverage applies.
A pedestrian, cyclist, passenger or motorcycle rider may still be able to claim mandatory accident benefits after a crash. But they may not automatically have access to every type of benefit that existed under the previous system.
This is especially important where the injured person cannot work, needs help at home, or is part of a family dealing with a fatal accident.
Which Accident Benefits Remain Mandatory After July 1, 2026?
Starting July 1, 2026, the most important mandatory accident benefits are:
Medical benefits: These may help pay for treatment expenses arising from the accident.
Rehabilitation benefits: These may help pay for services intended to improve function, independence and recovery.
Attendant care benefits: These may help pay for assistance with personal care needs after a serious accident.
These benefits can be extremely important in serious injury claims. They help fund treatment, support and recovery before a lawsuit is resolved.
However, even where these benefits remain mandatory, disputes usually still arise over whether treatment is reasonable and necessary, whether injuries fall within the Minor Injury Guideline, whether the person is catastrophically impaired, and whether the insurer must pay for specific assessments or services.
In the most serious cases, a dispute may arise over whether the injured person meets Ontario’s catastrophic impairment criteria, which can significantly affect the level of available medical, rehabilitation and attendant care funding.
Which Accident Benefits Become Optional in Ontario in 2026?
Many mandatory accident benefits become optional after July 1, 2026.
These include:
Income replacement benefits: Potentially available to eligible injured people who cannot work because of accident-related impairments.
Non-earner benefits: Potentially available to eligible injured people who suffer a complete inability to carry on a normal life but do not qualify for income replacement benefits.
Caregiver benefits: Potentially available in certain circumstances where an injured person can no longer provide caregiving because of accident-related impairments.
Housekeeping and home maintenance benefits: Potentially available in certain circumstances where an injured person can no longer perform normal housekeeping and home maintenance tasks.
Death and funeral benefits: Potentially available to surviving family members after a fatal motor vehicle accident.
Visitor expenses: Potentially available to help family members visit an injured person in hospital or during recovery.
Lost educational expenses: Potentially available where an injured student loses tuition or related educational expenses because of the accident.
Damage to clothing and personal items: Potentially available for clothing and personal items damaged in the accident.
These benefits seem secondary until a serious injury happens. For an injured person who cannot work, cannot care for children, cannot maintain the home, or whose family is dealing with a fatal accident, these benefits can matter greatly.
The Most Important Coverage Issue: Optional Benefits May Not Protect Everyone Injured in the Accident
One important detail are which benefits are becoming optional. The other more technical issue is who the optional benefits apply to.
Under the amended Statutory Accident Benefits Schedule, optional accident benefits are only applicable to:
The named insured
The spouse of the named insured
Dependants of the named insured or the named insured’s spouse
People listed in the policy as drivers of the insured automobile
That means a person injured in an accident should not assume that optional benefits purchased on a vehicle’s policy automatically protect every injured person involved in the crash.
This is where pedestrians, cyclists, passengers and non-household family members may face uncertainty.
A person may be badly injured by a motor vehicle and still need to ask:
Do I have my own auto insurance policy?
Am I covered under a spouse’s policy?
Am I a dependant under someone else’s policy?
Was I listed as a driver on a relevant vehicle policy?
If I do not have my own policy, which insurer is responsible for my accident benefits claim?
Do any optional benefits apply to me, or only to the named insured’s household and listed drivers?
These questions can affect the amount and type of benefits available after the crash.
Important coverage note: After July 1, 2026, one of the first questions after a serious accident may be which insurance policy applies and whether optional benefits protect the injured person. This can matter for pedestrians, cyclists, passengers, motorcycle riders and family members who do not have their own auto insurance policy.
Will I Still Get Income Replacement Benefits If I Am Hit as a Pedestrian?
Not automatically. A pedestrian struck by a car may have access to mandatory medical, rehabilitation and attendant care benefits. However, after July 1, 2026, income replacement benefits could depend on whether optional coverage applies to the injured person.
This may become one of the most important practical issues after the reforms.
Pedestrians are often among the most seriously injured people in motor vehicle accidents. They have no vehicle structure around them, no seatbelt, and no airbag protection.
A pedestrian who is hit by a car may suffer:
Fractures
Orthopaedic injuries
Chronic pain
Psychological injuries
Loss of income
Loss of independence
Long-term rehabilitation needs
After July 1, 2026, the pedestrian may be able to claim treatment-related benefits. But other benefits, especially income replacement, non-earner, caregiver, housekeeping, death and funeral benefits, may require a much closer review of available insurance policies.
For example, consider a pedestrian hit while walking to work along a busy road in Barrie or Kitchener. The pedestrian may not own a car and may not have an auto insurance policy. If that person cannot work after the collision, the key issue may be whether they have access to any policy where optional income replacement benefits apply to them.
The injured pedestrian may still have a lawsuit against the at-fault driver. But a lawsuit can take time. Accident benefits are often needed immediately.
If you were hit by a vehicle while walking, our Ontario pedestrian accident lawyers can help determine which insurance policy responds to your accident benefits claim and whether you may also have a lawsuit against the at-fault driver.
Can Cyclists and E-Bike Riders Still Claim Accident Benefits After 2026?
Yes, cyclists and e-bike riders injured by motor vehicles will still be able to claim accident benefits after July 1, 2026. However, the benefits available may depend on the applicable insurance policies and whether optional benefits apply to the injured person.
This may matter because many cyclists do not own vehicles or have auto insurance policies of their own.
A cyclist hit by a car may be a student, delivery rider, commuter, recreational cyclist, or someone who relies on cycling as their primary form of transportation. If the cyclist does not have their own auto policy and is not protected under a household policy, the accident-benefit analysis may become more complicated.
After a collision, the injured cyclist may need to know:
Is there an auto policy in my household?
Am I a dependant under another person’s auto policy?
Does the at-fault vehicle’s insurer respond?
Do optional benefits apply to me?
Am I limited to mandatory medical, rehabilitation and attendant care benefits?Can I still sue the at-fault driver?
The answer depends on the available policies, the injured person’s household status, and the accident-benefit priority rules.
This is one reason bicycle accident claims can become complicated quickly. The issue is not only whether the driver was at fault. The injured cyclist may also need immediate help identifying the correct insurer and preserving access to benefits.
Our Ontario bicycle accident lawyers represent cyclists injured by cars, trucks, buses and other motor vehicles, including claims involving serious injuries, disputed insurance coverage and long-term rehabilitation needs.
Do the 2026 SABS Changes Affect Motorcycle Accident Claims?
Yes. The 2026 SABS changes may affect motorcycle accident claims, especially where the injured person is a passenger, a non-owner rider, or someone whose access to optional benefits depends on another person’s policy.
Motorcycle accident claims are often more severe than ordinary car accident claims. Riders and passengers are exposed to direct impact, road contact, and high-force trauma.
A motorcycle accident may involve:
Fractures and orthopaedic trauma
Road rash and scarring
Traumatic brain injuries
Spinal cord injuries
Chronic pain
Long-term income loss
Catastrophic impairment disputes
The 2026 SABS changes will cause different impacts depending on whether the injured person was the motorcycle owner, a listed driver, a passenger, a spouse, a dependant, or someone else.
A motorcycle rider who owns and insures the motorcycle may be in a different position than a passenger on someone else’s motorcycle. A passenger may have to look at their own policy, the motorcycle policy, or another available policy to determine what accident benefits may apply.
This can become especially important where the injured person is unable to work after the accident.
If optional income replacement benefits do not apply, the financial consequences can be severe.
Our Ontario motorcycle accident lawyers help injured riders and passengers navigate accident benefits, insurance priority disputes, serious injury claims and lawsuits against negligent drivers.
Can Passengers Lose Access to Optional Accident Benefits?
Yes. After July 1, 2026, an injured passenger should not assume that all optional accident benefits are available simply because the vehicle was insured.
A passenger injured in a vehicle will often assume that because the vehiclehad insurance, all accident benefits will be available. After July 1, 2026, that assumption could be incorrect.
The available benefits may depend on whether the passenger is:
The named insured
The spouse of the named insured
A dependant of the named insured or spouse
A listed driver on the policy
Covered under another auto policy in their own household
A person with no auto insurance access of their own
The reason this matters is because passengers are frequently injured in vehicles owned by friends, relatives, co-workers, rideshare drivers, delivery drivers, employers, or acquaintances.
The accident may involve a vehicle that has basic mandatory coverage, but optional benefits may not apply to the injured passenger unless the passenger falls within the protected group under the policy or has access to another policy where optional benefits apply.
This is one of the most important practical consequences of the 2026 reforms.
Example: A Pedestrian Hit While Walking to Work
Lets consider a pedestrian hit by a car while walking to work. The pedestrian suffers a leg fracture, concussion and psychological symptoms. They cannot work for several months.
After July 1, 2026, the pedestrian should still be able to claim medical and rehabilitation benefits. These may help pay for physiotherapy, occupational therapy, psychological treatment, rehabilitation support and other accident-related care.
But what about income replacement benefits?
The answer likely depends on whether the pedestrian has access to an auto policy where optional income replacement benefits apply to them.
If the pedestrian does have their own auto insurance policy and had purchased optional benefits, the analysis will be different than if the pedestrian has no auto insurance, is not a spouse or dependant under another policy, and is not a listed driver.
That is why the insurance analysis after a pedestrian accident may become more important after July 1, 2026.
Example: A Cyclist Hit by a Turning Vehicle
Consider a cyclist hit by a driver making a left turn. The cyclist suffers a shoulder injury, wrist fracture and chronic pain. The cyclist is self-employed in a physical job and cannot return to work immediately.
The cyclist may still need:
Physiotherapy
Occupational therapy
Psychological treatment
Help with daily activities
Income support
Mandatory medical, rehabilitation and attendant care benefits would still be available. But income replacement benefits may depend on whether optional coverage applies.
For a self-employed cyclist, this creates a major problem. Even a temporary interruption in income can create financial pressure.
The cyclist may also have a tort claim against the negligent driver, especially if the crash was caused by unsafe turning, failure to yield, distracted driving, speeding, dooring, or failure to check for cyclists.
But in our backed up civil legal system, lawsuits can take years to resolve.
Example: A Passenger Injured in a Friend’s Car
A passenger is injured while riding in a friend’s car. The driver loses control, leaves the roadway and crashes.
The passenger suffers a back injury and a traumatic brain injury. The passenger is not married to the vehicle owner, is not a dependant, and not listed as a driver on the policy.
After July 1, 2026, the passenger may need to determine whether they have access to optional benefits through another policy, such as in their own household.
If not, some benefits may be unavailable even though the vehicle involved in the accident was insured.
The passenger may still have a claim against the negligent driver. But again, the tort lawsuit does not replace the need to identify available accident benefits early.
This is why injured passengers should not assume that the vehicle’s insurance automatically answers every coverage question.
The Income Replacement Problem
The most obvious practical concern is income replacement.
A person who is badly injured in a motor vehicle accident may not be able to work for weeks, months, or longer. Some injured people never return to their pre-accident employment.
Income replacement benefits are not the same as full wage replacement. They are limited and governed by the SABS. But they can still be an important source of financial support while the injured person is unable to work.
After July 1, 2026, income replacement benefits may not be automatically available in the same way.
That may be especially important for:
Pedestrians who do not own a vehicle
Cyclists who do not have auto insurance
Passengers injured in someone else’s vehicle
Young workers
Students with part-time jobs
Self-employed people
Gig workers and delivery riders
People injured while travelling in a rideshare or friend’s vehicle
People not listed drivers on the relevant policy
For these individuals, the key issue may if they have access to a policy where optional income replacement benefits apply to them.
The Family Protection Problem
The changed SABS language creates another problem for consumers: optional benefits are limited to specific people connected to the policy.
That includes the named insured, the spouse of the named insured, dependants of the named insured or spouse, and listed drivers.
This may creates tricky legal questions.
What about an adult child who no longer qualifies as a dependant?
What about a roommate?
What about a girlfriend, boyfriend or partner who does not qualify as a spouse?What about a passenger in a friend’s vehicle?
What about a cyclist with no auto policy?
What about a pedestrian who lives alone and does not own a car?
What about a delivery rider using an e-bike?
What about a motorcycle passenger who is not part of the owner’s household?
These are not theoretical issues. They will continually occur after these changes go through and will cause additional legal disputes. This is likely an unforeseen consequence of the changes.
Can I Still Sue the At-Fault Driver After the 2026 SABS Changes?
Yes. The 2026 SABS changes do not eliminate the right to sue an at-fault driver.
An injured pedestrian, cyclist, passenger, motorcyclist or driver may still have a tort claim if another person’s negligence caused the accident.
A tort claim may include damages for:
Pain and suffering
Past and future income loss
Loss of earning capacity
Future care costs
Out-of-pocket expenses
Housekeeping and home maintenance losses
Family Law Act claims by close family members
Other accident-related losses
However, lawsuits take time. Accident benefits provide the first source of treatment funding and income-related support after a crash.
That is why the availability of statutory accident benefits matters so much, even where the injured person has a strong lawsuit against the at-fault driver.
Our Ontario car accident lawyers help injured people pursue both accident benefits and lawsuits against negligent drivers where the evidence supports a tort claim.
How These Changes May Affect Serious Injury Claims
The 2026 accident-benefit changes affect those seriously injured the most.
For example, a person with a traumatic brain injury, spinal injury, multiple fractures, amputation, severe psychological injury or catastrophic impairment may need extensive treatment and support.
Medical, rehabilitation and attendant care benefits remain mandatory. But serious injuries often create losses beyond treatment expenses.
An injured person may also lose income, require help with family responsibilities, lose the ability to maintain the home, require family members to travel for care, or suffer losses that affect the entire household.
If some of those benefits are optional and do not apply to the injured person, the lawsuit against the at-fault driver may become even more important.
Our Ontario personal injury lawyers represent people with serious and life-changing injuries, including claims involving long-term income loss, future care needs and disputed insurance coverage.
What Injured People Should Do After July 1, 2026
After July 1, 2026, injured people should take the insurance coverage issue seriously from the beginning.
Important steps may include:
Report the accident and seek medical attention immediately.
Medical records are important for both accident benefits and any lawsuit against the at-fault driver.
Identify all available insurance policies.
This could include the injured person’s own auto policy, a spouse’s policy, a household policy, the vehicle involved in the crash, an employer policy, or another policy connected to the accident.
Do not assume the at-fault driver’s insurance answers every question.
The priority rules and optional-benefit restrictions affect which insurer is responsible and which benefits are available.
Preserve evidence early.
Police reports, photos, witness names, dashcam footage, surveillance footage, hospital records, employment records and insurance documents are all potentially important evidence.
Get advice before accepting an insurer’s explanation of coverage.
The insurer’s first position may not answer every legal question. In serious cases, the availability of optional benefits should be reviewed carefully.
Why This May Increase the Importance of Early Legal Advice
The 2026 SABS changes may make accident-benefit claims more technical.
In the past, many injured people focused mainly on whether they were hurt badly enough to claim certain benefits. After July 1, 2026, more injured people may also need to ask whether those benefits are available to them at all.
That may require early review of:
The injured person’s auto insurance policy
Household policies
Spousal or dependant status
Whether the person was a listed driver
The policy covering the vehicle involved in the accident
The order of priority between insurers
The optional benefits selected or declined
The timing of the policy renewal or change
Whether the accident involved a pedestrian, cyclist, passenger, motorcyclist, rideshare vehicle, work vehicle or e-bike
This is not just paperwork. It affects treatment funding, income support and the overall strategy of the case.
What Families Should Understand Before a Serious Accident Happens
The difficult part about these types of changes is that many people will not understand the coverage complications until after a crash.
A family might renew an auto policy and select basic coverage to save money. But if a serious accident happens later, the financial consequences may be much larger than the premium savings.
Households disproportionately impacted include:
Working spouses
Young adult children
Students
People who cycle or walk frequently
Motorcyclists
People who are passengers in other vehicles
People who rely on one income
Caregivers
Self-employed people
People without strong disability benefits through work
The legal issue is not limited to whether the family bought optional benefits, but also whether the injured person falls within the group protected by those optional benefits.
That is why Ontario drivers should review their policies carefully before and after July 1, 2026.
Are Pedestrians and Cyclists Still Protected After July 1, 2026?
Pedestrians and cyclists are not left with no protection. Medical, rehabilitation and attendant care benefits remain mandatory. Injured pedestrians and cyclists may also still have the right to sue an at-fault driver.
But the reforms may change the availability of other benefits, especially where the injured person does not have access to optional coverage that applies to them.
The safest answer is this:
After July 1, 2026, an injured pedestrian or cyclist should not assume that all accident benefits are automatically available. The correct insurer, the available policies, the injured person’s household status, and the optional benefits selected under any applicable policy may all matter.
That is the practical issue.
Frequently Asked Questions About Ontario’s 2026 SABS Changes
Are accident benefits being eliminated in Ontario?
No. Accident benefits are not being completely eliminated. Medical, rehabilitation and attendant care benefits remain mandatory. However, many other accident benefits become optional as of July 1, 2026.
What accident benefits remain mandatory after July 1, 2026?
Medical benefits, rehabilitation benefits and attendant care benefits remain mandatory.
What accident benefits become optional?
Benefits such as income replacement, non-earner, caregiver, housekeeping, death, funeral, visitor expenses, lost educational expenses and damage to clothing benefits become optional.
Do optional benefits apply to everyone injured in the accident?
Not necessarily. Under the amended SABS, optional benefits apply only to specific people connected to the policy, including the named insured, spouse, dependants and listed drivers.
Can a pedestrian still claim accident benefits after July 1, 2026?
Yes, a pedestrian injured by a motor vehicle may still be able to claim accident benefits. However, the type and amount of benefits available may depend on the applicable insurance policies and whether optional benefits apply to the injured pedestrian.
Can a cyclist still sue the driver who hit them?
Yes. The 2026 SABS changes do not eliminate lawsuits against at-fault drivers. A cyclist injured by a negligent driver may still have a tort claim, depending on the facts.
Do the changes affect motorcycle accident claims?
Yes, they may. Motorcycle riders and passengers may need to review which policy applies and whether optional benefits are available to them.
Why should injured people get legal advice earlier after July 1, 2026?
Because the coverage analysis may become more important. Injured people may need help identifying the correct insurer, determining whether optional benefits apply, and preserving both accident-benefit and tort claims.
Speak With an Ontario Personal Injury Lawyer
The 2026 SABS changes will create confusion for injured people and families. The key issue is not only whether an accident happened. It is also which insurance policy responds, which benefits are mandatory, which benefits are optional, and whether the injured person is protected by the optional coverage.
Foster Injury Law represents those injured in serious motor vehicle accidents across Ontario, including pedestrians, cyclists, motorcycle riders, passengers and drivers.
If you or a family member was injured in a motor vehicle accident, we can help you understand your accident benefits claim, your right to sue the at-fault driver, and the insurance issues that may affect your recovery.
