Ontario’s overhaul of its auto insurance system is raising concerns among consumer advocates and legal experts, who warn the changes could leave drivers without critical protection in the event of a serious crash.
The reforms, introduced in early 2024 as part of the provincial spring budget by Finance Minister Peter Bethlenfalvy, are aimed at modernizing the system and giving motorists more choice. The government says the changes will improve flexibility and affordability.
Under the new rules, medical and rehabilitation coverage will remain part of the mandatory base policy. But starting July 1, 2026, most other benefits will become optional. Drivers buying new policies or switching insurers will have to decide whether to add coverage such as income replacement, compensation for damaged personal items, caregiver and housekeeping benefits, and death and funeral coverage.
Elliott Silverstein of the Canadian Automobile Association told Global News this marks the biggest shift to Ontario’s auto insurance system in at least a decade. He said many drivers may opt out of protections they previously had by default, even though the savings could be relatively small — about $100 per year on average.
“The financial impact of a serious collision without adequate coverage could be devastating for families,” Silverstein said.
Legal experts also question how affordable optional benefits will be. Steven Rastin, senior counsel at Gluckstein Lawyers, noted that while base premiums are regulated, insurers can set their own prices for add-on coverage. He warned monthly costs could be high, putting full protection out of reach for some drivers.
When the policy was announced, Bethlenfalvy said it would give consumers more choice but acknowledged there were no guarantees premiums would drop, adding the government had no firm projections on how rates would change.
The Ontario NDP has criticized the reforms. MPP Tom Rakocevic told Global News that drivers are being asked to trade valuable protections for minimal savings, warning they could eventually pay similar premiums for far less coverage.
The CAA is urging motorists to review their policies carefully before making changes. Silverstein advised that drivers satisfied with their current coverage may want to keep it, noting insurance is often relied on during unexpected and financially stressful situations.