Ontario auto insurance changes July 1, 2026: Thomson Rogers partner Darcy Merkur explains what you need to know

Thomson Rogers partner Darcy Merkur was featured on CBC Radio’s Here & Now on June 2, speaking about the auto insurance reforms taking effect in Ontario on July 1, 2026.

With the changes weeks away, many Ontarians remain unaware of how significantly their coverage is about to shift. Merkur outlined the core issue during the interview, saying, “Come July 1, the standard automobile policy which provides no fault protection to people injured in accidents, is being cut to just medical rehabilitation and attendant care benefits.”

What’s being cut

Under the new standard policy, benefits that injured people have historically relied on will no longer be included by default.

“All of the extra stuff, some of the important stuff like […] income replacement and visitor expenses is now shaved off, so people injured in an accident only qualify for medical coverage, and the medical coverage is fairly inadequate in the first place.”

The renewal trap

For those who currently have auto insurance, coverage won’t change immediately — but Merkur warns that renewal time poses a real risk.

“Anyone who currently has auto insurance will be automatically deemed to continue with the same benefits they had before. But when they’re up for renewal, they may be encouraged to ‘cheapen’ the cost of their auto insurance by eliminating some of those important criteria, some of those important benefits, that don’t necessarily seem important like visitor expenses, but are life changing in certain circumstances.”

A gap that affects 40 per cent of Ontarians

The reforms create a deeper problem for the roughly 40 per cent of Ontarians who don’t have access to auto insurance. Under the new rules, pedestrians, transit users and others not listed on an auto policy won’t be eligible for optional benefits. The financial burden will shift elsewhere.

“The money has to come from somewhere: it will put a strain on government assistance, government support, EI sickness benefits for example will be more accessed by people who don’t qualify for income replacement benefits.”

What you should do now

Merkur’s advice is straightforward: act before your next renewal.

“Anyone who currently has a car, should check with their insurance broker, check with their insurance company, ask about optional benefits. Buy higher optional benefit access, and buy increased liability limits.”

For those without auto insurance, Merkur points to short- and long-term disability coverage as an alternative that extends beyond auto injuries.

Listen to the full CBC Here & Now segment.

For more information

Read Darcy’s blog: Ontario Auto Insurance Changes July 1, 2026: What You Need to Know.