New changes to Ontario’s auto insurance system introduced by the Ford government are raising concerns among consumer advocates, who warn the reforms could leave many drivers underinsured in the event of a serious accident.
The overhaul, announced in early 2024 as part of Finance Minister Peter Bethlenfalvy’s spring budget, was presented as a move toward more affordable and modern auto insurance options. Under the new rules, insurance providers will continue to include medical and rehabilitation coverage in the base policy. However, starting July 1, 2026, most other benefits will become optional.
Drivers purchasing a new policy or switching insurers will be asked to choose whether they want additional coverage, such as income replacement, compensation for damaged personal belongings, caregiver and housekeeping expenses, and death and funeral benefits.
“This is probably the biggest change we’ve seen in the auto insurance system in at least a decade,” said Elliott Silverstein of the Canadian Automobile Association.
Critics argue that while the changes offer more choice, they also increase the risk that drivers may opt for lower coverage to save money—potentially exposing themselves to significant out-of-pocket costs after a catastrophic crash. Advocates are urging motorists to carefully review their options to avoid unintended financial consequences.
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