New à la carte auto insurance could cost drivers in the long run, experts warn

Traffic on Oxford Street West seen in London, Ont. on June 30, 2026. (Bryan Bicknell/CTV News London)

Ontario drivers could soon catch a break on their auto insurance. As of July 1, a new model takes effect, giving drivers the choice to opt-out of some types of coverage.

It’s something London, Ont. driver Ray Grimsey says he’ll consider.

“It’s costing me three thousand dollars a year it’s costing. I’m wondering if it’s because of my age, or what. So, it’s something I’d look into, yeah.”

Under the province’s new à la carte style accident benefits model, drivers purchasing a new insurance policy or renewing an existing one, can choose whether to opt-in for some benefits that used to come standard. These include income replacement, death benefits and funeral costs, home maintenance, and more.

Rates.ca insurance expert Daniel Ivans says the new model gives drivers choice.

“Consumers have been asking for this for a long time. They want more choice around their insurance policy and what coverages they have. So, this opens up the window for that conversation,” he said.

“However, on the other side of that, when a consumer declines a specific coverage, that means that they introduce a new exposure into the household. And what consumers are going to have to be aware of is … what the implications of having a claim but didn’t have the coverage when you needed it look like."

Ivans says drivers will save an average of about five per cent, or $10 to $20 per month, depending on premiums.

Personal injury Lawyer Sam Chams of Millars Law in London cautions that whatever money you save could end up costing you in the long run.

“They’re opting out of income replacement benefits that if, God forbid, they’re in an accident or collision, they’re not going to get paid their salary,” said Chams.

Also impacted by these changes are non-drivers. Currently, uninsured victims of accidents, like pedestrians or cyclists, are entitled to the same no-fault benefits as drivers.

Under the new model, those same victims will only qualify for the minimum benefits, and not the optional coverage.

The same goes for passengers, or those who borrow a car and get into an accident.

“It’s going to force Canadians to settle their cases significantly sooner and at less money, which ultimately is getting pennies on the dollar for the accident that wasn’t their fault,” said Chams.

Medical benefits will remain mandatory under the new model.