Your Auto Insurance Is Changing: Here’s What You Need to Know

Big changes are coming to Ontario auto insurance on July 1st, and they affect something most drivers rarely think about… until they desperately need it: income replacement benefits (IRBs). Let’s walk through what’s changing, why it matters, and how to protect yourself and your family. 

What Are Income Replacement Benefits? (And Why Should You Care?) 

IRBs are among the most important parts of your policy, and losing them could turn a bad day into a financial disaster. Imagine you're in a car accident and can’t work anymore. Bills don’t stop. Rent or mortgage payments don’t stop. Groceries don’t stop. 

Right now, your auto insurance automatically steps in with weekly income support to help you stay afloat while you recover. You don’t have to ask for it. It’s just there. But that’s about to change. 

What Happens After July 1st? 

After July 1st, if your auto policy renews, IRBs will no longer be part of your policy, unless you opt in and pay for them. 

If you don’t opt in, and you’re injured in a collision and unable to work, your auto insurance will provide no income support at all. Many people won’t realize this until it’s too late, and by then, they’re already struggling week to week, wondering how they’ll cover the basics. 

Does Everyone Need This Coverage? 

If you have a generous LTD policy, either privately secured or through work, you might not even have to think about the changes happening on July 1st.   

But here’s something most people don’t realize: whatever coverage you choose applies not just to you, but to other members of your household. Not opting in to IRBs might mean you’re saying no to protection for your spouse and children, as examples. 

How Much Coverage Makes Sense for You? 

IRBs are designed to replace about 70% of your pre‑accident earnings. Use the chart below to see which option fits your income.  

• $30,000 per year or less - $400 per week 

• $30,000 to $44,500 - $600 per week 

• $44,500 to $59,000 - $800 per week 

• Over $59,000 – $1,000 per week 

This Change Matters — Don’t Get Caught Underinsured 

Most people don’t comb through their auto insurance documents. They renew quickly, often online, trusting that the essentials are included. I know insurance isn’t fun to think about, but being underinsured when you’re recovering from a horrible accident is far worse. 

Take a moment to review your policy and ask questions. If you need guidance, speaking with someone who works in motor vehicle law can make a world of difference.