For years, commercial auto policies provided a predictable, province‑mandated safety net for employees injured while driving for work. That changes on July 1, 2026, when Ontario introduces a more flexible accident benefits model.
Under this reform, many protections that were once standard will become optional, placing full responsibility for selecting and shaping coverage in the hands of the policyholder. This reform represents the most significant change to the Ontario Automobile Policy (OAP 1) and Ontario Garage Auto Policy (OAP 4) in more than a decade.
If you insure employees who drive company vehicles, here’s what you need to know.
Standard Benefits Effective July 1, 2026
Auto policies issued on or after July 1, 2026, will include only three standard accident benefits:
- Medical
- Rehabilitation
- Attendant Care
The standard policy limits associated with these coverages will not change.
Optional Benefits Effective July 1, 2026
Under the Reform, the following accident benefits will become optional:
- Income Replacement
- Non‑Earner
- Caregiver
- Housekeeping and Home Maintenance
- Death and Funeral
Changes to who is covered
Beginning July 1, 2026, eligibility for the new optional accident benefits will be defined more narrowly. Optional benefits will apply only to:
- the named insured
- the spouse of the named insured
- dependants of the named insured
- individuals listed on the policy as drivers of the automobile.
Many employees who drive company vehicles may not automatically fall into one of the eligible categories. As a result, organizations will need to review how their fleets are structured and ensure that all intended drivers are listed or supported through alternative benefit programs.
The “second payor” shift
A core assumption of the reform is that employers already provide some level of disability or health coverage through workplace benefits plans. As a result, auto insurers will increasingly serve as second payors, responding after group benefits have been exhausted.
Your HR and benefits programs now form the first line of financial protection for injured drivers. Any gaps in disability or health coverage will directly translate into uninsured income loss, out of pocket medical costs, or prolonged recovery periods, all of which can impact operations and increase employer exposure.
Drivers without robust workplace benefits, including part‑time, contract, seasonal, or temporary drivers, may be disproportionately exposed if auto accident benefits are not supplemented.
*Note - Auto insurers remain the first payer for the new mandatory benefits (Medical, Rehabilitation and Attendant Care)
What to do before July 1, 2026
1. Talk to your broker
› With these changes to accident benefits, your broker becomes an essential guide in helping you understand the new options and choose coverage that fits your business needs.
2. Audit driving exposure
› Identify which employees operate company vehicles, how frequently, and under what circumstances.
› Determine if employees rely on the accident benefits provided by the auto policy.
3. Review optional benefits
› Weigh the cost of optional benefits, especially Income Replacement, Caregiver, and Non‑Earner. The savings from removing them are usually small, but the risk to drivers can be significant.
4. Update fleet and HR documentation
› Ensure driver handbooks, fleet manuals, and employment agreements clearly outline what is and isn’t covered under the 2026 benefit model.
› Transparency reduces confusion and prevents post‑incident coverage disputes.
5. Manage renewals carefully
› Policies renewing on or after July 1, 2026, will maintain current benefits unless the employer opts out in writing, accompanied by the new OPCF 47R form. New policies issued after that date will include only the mandatory minimums unless optional benefits are selected.
With the right preparation, your fleet can transition confidently into the new Accident Benefits environment, maintaining the protection your drivers rely on, while aligning coverage with your operational goals.
Looking for more information?
These trustworthy sources have developed resources about the changes associated with the Ontario auto reform.
- Registered Insurance Brokers of Ontario
- Insurance Brokers Association of Ontario
- Financial Services Regulatory Authority of Ontario
Or, contact your insurance broker.
