What No-Fault Means for Your Claim
1. Who Pays for Your Car?
Under the Direct Compensation Property Damage (DCPD) system, your own insurer pays for your vehicle repairs.
- The Catch: This only applies if the other driver is also insured in Ontario.
- Fault Still Matters: If you are found at fault, you may have to pay a deductible, and your future premiums will likely increase.
2. Who Pays for Your Injuries?
Medical and rehabilitation costs are covered under Statutory Accident Benefits (SABS). Starting July 2026, the structure of these benefits has changed significantly:
- Mandatory Coverage: Only Medical, Rehabilitation, and Attendant Care benefits remain mandatory in every policy.
- Optional Benefits: Features like Income Replacement, Caregiver Benefits, and Housekeeping Expenses are now optional. You must specifically opt-in to keep these protections.
- Primary Payor: Auto insurance now pays for medical/rehab expenses before your workplace or private health plan (except for medication).
3. Limited Coverage for Others
A critical update in 2026 is that Optional Benefits (if you choose to buy them) now only apply to the named insured, their spouse, dependents, and listed drivers.
3 Quick Tips for 2026 Claims
- Review Before You Renew: Check if your employer’s health plan covers disability. If not, you likely need the optional Income Replacement benefit.
- Check the Fault Rules: Insurance companies use the Fault Determination Rules (a legal regulation) to decide who is at fault—not the police.
- Document Everything: Even in a no-fault system, having photos and witness contacts is vital to ensure fault is assigned correctly and your deductible is waived.
Source: Financial Services Regulatory Authority of Ontario (FSRA) – 2026 Accident Benefits Reforms
Insurance Bureau of Canada (IBC) – Ontario Auto Insurance Changes 2026