Understanding the Impact of Auto Insurance Accident Benefits Changes on Pedestrians and Cyclists
- Dave Shellnutt
- 5 minutes ago
- 5 min read
Vulnerable Road Users are set to become the biggest losers and most at risk following the Ontario Government’s auto insurance changes. Billed by Premier Ford as consumer savings, the reality is this 5% reduction in insurance fees per year comes at the cost of potentially 10s of thousands of benefits available to people injured in collisions with motor vehicles.
When you are involved in a collision with a motor vehicle, as a driver, passenger, pedestrian or cyclist you’re entitled to automatic no fault benefits. The benefits available after the July 1, 2026, changes are going to be dramatically reduced in many cases. Entire areas of coverage will no longer be available to many injured people.
Who stands to lose these supports? Well, the driver who chooses to forgo the optional coverages, but also people hit by motorists who have no choice in the matter.
Any cyclist, pedestrian, e-scooter or e-bike rider that is hit by a motor vehicle driver in Ontario after July 1, 2026 (days from now) will not have access to previously automatic no fault benefits like lost wages, lost tuition costs, caregiver benefits and more (unless they have their own auto insurance – more on this below).
The impact of this on people who have suffered injury in a collision with a motor vehicle could be profound. Without income supports how will folks pay rent, bills, support their kids, etc. Sure, the income replacement benefit was only $400 dollars a week (kept low by insurance companies/the Government failing to properly adjust to inflation for years – while the deductible that applies to your pain and suffering claim has gone up ever year making lawsuits for injured people exceedingly difficult), but it was something.
We can tell you from experience, in some cases income replacement benefits meant the difference in keeping one’s housing during a rough recovery period.
It’s shocking and frankly obscene that vulnerable road users are being treated this way, but let’s dive deeper into what it practically means.
The following auto insurance accident benefits will become optional:
A pedestrian, cyclist, passenger or e-bike rider will still be able to claim the mandatory medical and rehabilitation Accident Benefits after a crash. They won’t have access to the optional benefits unless they have their own auto insurance and have maintained the optional benefits under that policy.
If you have your own auto insurance and are involved in a collision with a motor vehicle, your own auto insurance pays your Accident Benefits (even if you were on your bike) and so what coverage you decide to buy will kick in even if you were hit on your bike or walking the dog across the street (see our article on Accident Benefits here).
Accident Benefits are there to help you with costs that happen after a motor vehicle collision. When you opt out of a benefit to save money on your premium, you're choosing to take on those costs yourself, which can add up fast.
Consider the support you’ll need while you’re recovering, like:
Income replacement
In-home healthcare
Help with housekeeping
If you opt out of a coverage, it means you’ll be paying out of pocket for this type of support.
Who’s covered by your auto policy? As of July 1, 2026, the newly optional benefits under your auto policy will only apply to:
The named insured
The spouse of the named insured
Dependents of the named insured and of the named insured’s spouse
Persons specified in the policy as drivers of the automobile
Many people previously covered, like your passengers, pedestrians, cyclists, may no longer be eligible for the optional Accident Benefits.
If you don’t have your own auto insurance policy this change is particularly harmful. A pedestrian or cyclist struck by a car will still have access to mandatory medical, rehabilitation and attendant care benefits but not all the optional coverages listed above (this is a major change, all the optional coverages were mandatory and accessible before July 1, 2026).
The 2026 Accident Benefits insurance changes do not eliminate the right to sue an at-fault driver.
The injured cyclist and pedestrian may still have a lawsuit against the at-fault driver. A tort claim may include damages for:
Pain and suffering
Past and future income loss
Loss of earning capacity
Future care costs
Out-of-pocket expenses
Housekeeping and home maintenance losses
Family Law Act claims by close family members
Other accident-related losses
Lawsuits take time. Accident Benefits provided the first source of treatment funding and income-related support after a crash that was critical in allowing people to focus on recovery and not be forced financially to return to work before they are medically cleared to.
That is why the availability of statutory accident benefits matters so much, even where the injured person has a strong lawsuit against the at-fault driver.
We recommend everyone practice some due diligence and pre-emptively make sure you have adequate coverage. Get answers to the following questions:
Is there an auto policy in my household?
Does that policy have the optional benefits?
Am I a dependent under another person’s auto policy?
Do I have short and long term disability coverage through my employer?
What kind of medical coverage do I have through my employer?
Are any other policies available to protect me (home, Ontario Cycling Association, Bicycle Broker, etc.)
If you’ve been involved in a collision it’s critical with these Accident Benefits changes that you consult a lawyer and get a free consult. Our office are Accident Benefits and Civil Lawsuit specialists for cyclists and pedestrians, reach out now: info@thebikinglawyer.ca / 800-725-0754.
Additional information:
Globe and Mail: "The government of Premier Doug Ford argues that a lot of those benefits are unnecessary or redundant for many people. If you don’t have dependents, for example, you don’t need caregiver benefits. And if you have disability insurance through work, you may not want to pay for income replacement coverage through your car policy.
Fair enough. But don’t expect your premium to shrink much if you reduce your coverage. The Insurance Brokers Association of Ontario has estimated that the savings would likely amount to $100 a year at most. That’s a 5 per cent discount on the average Ontario auto premium of around $2,000 a year
Is it worth it to give up thousands if not tens of thousands of dollars in coverage for the sake of saving $5 to $10 a month? That’s one question to ask yourself.
This is not just paperwork. It affects treatment funding, income support and the overall strategy of the case."
More detail on the optional benefits:
Income replacement: Helps replace income that you or another covered person may lose because of an auto accident.
Non-earner: If you or another covered person is a student or unemployed and an auto accident keeps you or them from leading a normal life, this benefit can provide financial support during recovery.
Caregiver benefits: Helps cover caregiving expenses if you or another covered person is injured in an auto accident and can no longer provide care for a household member who needs care, such as a child or aged parent.
Lost educational expenses: If an auto accident prevents you or another covered person from attending school or an educational program, this benefit can help cover the costs you have incurred, such as tuition and books.
Expenses of visitors: Helps cover reasonable and necessary expenses of visitors, such as a sibling or parents, if you or another covered person is injured in an auto accident.
Housekeeping and home maintenance: Helps cover costs if you, or another covered person, are unable to perform the housekeeping and home maintenance tasks that you, or that person, had normally done before being injured in an auto accident.
Damage to personal items: Helps cover the cost to repair or replace personal items (e.g., clothing, prescription eyewear, hearing aids) damaged in an auto accident.
Death benefits: Compensates some family members if you or another covered person dies due to an auto accident.
Funeral benefits: Helps cover some funeral costs if you or another covered person dies due to an auto accident.