Ontario’s new insurance rules let you save $2 a week—or risk losing $20,800 after a crash

Ontario has flipped nine standard car insurance benefits into optional add-ons, giving drivers more control over premiums but exposing them to significant financial risk. The changes mean self-employed drivers could lose up to $20,800 in income replacement benefits if they opt out of coverage and later suffer a crash that forces them off work for a year. The savings are minimal—about $100 annually, or roughly $2 a week—making the trade-off questionable for those without employer safety nets. Insurance brokers warn that declining benefits like caregiver support, housekeeping, funeral expenses, and lost education costs could leave drivers dangerously underinsured. The reforms, which took effect this month, also raise concerns about disputes after accidents, as drivers may not fully grasp what they’ve excluded. While medical, rehabilitation, and attendant care remain standard, other benefits—including rehabilitation indexation—stay optional. Existing policyholders shouldn’t see automatic changes, but coverage for pedestrians, cyclists, or certain passengers could shift. Brokers emphasize the need to scrutinize new policies to avoid gaps that could cost thousands in a worst-case scenario.