This article was originally published in the Hamilton Spectator on June 13, 2026.
They’re at it again.
Ever since the 1980’s, provincial governments of all political stripes have buckled under pressure from the insurance industry to methodically strip Ontarians of their legal rights in connection with car insurance. Now the Ford government is building on this shameful legacy by slashing the benefits contained in Ontario’s standard policy of Automobile Insurance.
Effective July 1, 2026, mandatory benefits that have been included by law in every Ontario automobile policy since 1972 will be removed from the standard owner’s policy. That means that unless you pay extra premiums, you will no longer have the minimum protection that you and all motorists have had for almost 55 years. The worst part is that there’s a good chance you won’t know about it until it’s too late.
The industry pitches these changes as offering consumers more “choice” and the opportunity to have more say in what their premiums will be. But that is the poison in a trap that has been set for the unwary and unfortunately it will be the most vulnerable who are ensnared when it snaps.
Most owners don’t read or understand the fine print in their insurance documents. Even the most sophisticated and knowledgeable policy holders are confused by the paperwork they receive from their insurers or brokers and by the media reports they read or listen to on the subject. Confusion works to the advantage of insurance companies. On the one hand, eliminating mandatory benefits means they will pay out less in claims. On the other hand, making motorists pay for those benefits if they still want them means the companies will take in more in premiums. It’s a win-win for the insurer and a lose-lose for the consumer. And anyone who thinks their premiums will go down hasn’t been paying attention for the last 40 years.
The loss of these protections should concern every motorist. Waiting until after calamity strikes to find out that you no longer have the coverage you thought you had is not a good plan. If you still want all the protection that used to be included automatically in your policy, you are going to have to ask for it and pay new premiums to keep it. In most cases, it will be prudent to do so.
For example, unless you pay for additional optional coverage, you will no longer have any protection under your policy for the income you might lose as a result of a car crash. Similarly, you will need to pay extra premiums to cover the cost of help you may need with basic housework you can no longer do if you are injured. These are just two of the mandatory benefits that the new Regulation has stripped out of the standard policy. And their removal is only part of the story.
The most important coverages in the standard policy are already fundamentally inadequate unless you pay additional premiums. For example, if you are sued by someone who is injured in a collision that was your fault, the law requires only that the standard car insurance policy protect you up to the statutory minimum liability limit of $200,000. For more protection, you must pay additional premiums. Even insurers agree that the statutory limit is woefully inadequate and offer liability coverage of $1M in most policies. Likewise, the standard policy coverage for medical, rehabilitation and care costs is wholly insufficient unless you pay additional premiums. But the fact remains that such increased coverages are optional and it is up to consumers to figure out what they need or face potentially ruinous consequences.
Talk to your insurance advisor now. Go through your coverages line by line and make sure you understand them. Confirm your understanding in writing. And then perhaps you can sleep a little more soundly.
For more information about this important issue, go to: truthaboutinsurance.ca.
Dermot Nolan recently retired after more than 50 years holding insurance companies to account as trial counsel with Nolan, Ciarlo LLP in Hamilton.