1. The Core Components of Your Claim
Every standard auto policy in Ontario includes mandatory coverages that form the backbone of the no-fault system:
- Statutory Accident Benefits (SABS): These provide medical, rehabilitation, and income replacement support (Bogoroch & Associates LLP, n.d.).
- Direct Compensation – Property Damage (DC-PD): If you are not at fault, your own insurer pays for the repairs to your vehicle (Benjamin Law Firm, 2026).
- Uninsured Automobile Coverage: Protects you if the other driver has no insurance or leaves the scene of a “hit and run” (Zayouna Law Firm, n.d.).
2. Understanding Accident Benefits (SABS)
Benefits are tiered based on the severity of the injury. As of 2026, the following limits typically apply (Bogoroch & Associates LLP, n.d.):
| Injury Category | Coverage Limit | Duration |
| Minor Injury (MIG) | Up to $3,500 | Up to 5 years |
| Non-Catastrophic | Up to $65,000 | Up to 5 years |
| Catastrophic (CAT) | Up to $1,000,000 | Lifetime |
Important 2026 Update: Effective July 1, 2026, Ontario auto insurance laws are changing. While medical and rehabilitation benefits remain mandatory, other coverages like Income Replacement will become optional (FSRA, 2026). Drivers must review their policies to ensure they have the protection they need.
3. Can You Still Be “At Fault”?
Yes. Insurance companies still investigate every accident using the Ontario Insurance Act’s Fault Determination Rules (BrokerLink, n.d.).
- Premiums: If you are found more than 50% at fault, your insurance premiums will likely increase (Zayouna Law Firm, n.d.).
- Deductibles: Your fault percentage determines whether you must pay your deductible for vehicle repairs (Zayouna Law Firm, n.d.).
4. The Right to Sue (Tort Claims)
While you get immediate benefits from your own insurer, you can still sue the at-fault driver for “pain and suffering” or additional economic losses. However, Ontario law sets a high bar; your injuries must meet a legal threshold of being “permanent and serious” (AH Injury Law, n.d.).
5. Critical Timelines for Your Claim
Missing a deadline can result in a denied claim.
2 Years: General limitation period to start a lawsuit for personal injury (Benjamin Law Firm, 2026).
7 Days: Notify your insurer about the accident (Bogoroch & Associates LLP, n.d.).
30 Days: Submit your completed Accident Benefits application (AH Injury Law, n.d.).
References
AH Injury Law. (n.d.). Understanding Ontario’s no-fault insurance: What every driver should know. AH Injury Law. https://ahinjurylaw.com/understanding-no-fault-insurance-ontario/
Benjamin Law Firm. (2026). Understanding Ontario’s no-fault insurance system for auto accidents in Toronto and how Benjamin Law Firm can assist you. Benjamin Law. https://www.benjaminlaw.ca/understanding-ontario-s-no-fault-insurance-system-for-auto-accidents-in-toronto-and-how-benjamin-law-firm-can-assist-you
Bogoroch & Associates LLP. (n.d.). What are Statutory Accident Benefits? Bogoroch & Associates. https://www.bogoroch.com/blog/what-are-statutory-accident-benefits-in-ontario-sabs/
BrokerLink. (n.d.). No-fault insurance in Canada: How it works & what it covers. BrokerLink. https://www.brokerlink.ca/blog/no-fault-insurance
Financial Services Regulatory Authority of Ontario (FSRA). (2026). Changes in Statutory Accident Benefits coverage in Ontario on July 1, 2026. FSRA. https://www.fsrao.ca/industry/auto-insurance/changes-statutory-accident-benefits-coverage-ontario-july-1-2026
Zayouna Law Firm. (n.d.). No-fault insurance in Ontario: Key facts. Zayouna Law. https://www.zaylaw.com/blog/understanding-no-fault-insurance-in-ontario-what-you-should-know/
Aarti Mane is an insurance researcher and content editor at Insurance Guide Book.
