Spring Roads, New Risks: What Ontario Motorcyclists Need to Know About Automobile Insurance Changes Coming this Season

As Ontario motorcyclists start to think about getting their bikes out of winter storage, there’s more on the horizon than just warmer weather. This year will mark a significant shift in how auto insurance works in Ontario, and it could have real consequences for riders’ financial protection after a crash. 

On July 1, 2026, Ontario is overhauling its auto-insurance system, moving from a largely one-size-fits-all package of statutory accident benefits to what insurers describe as an “à la carte” model. While it remains to be seen how insurers will ultimately price and underwrite the new mandatory ‘core’ coverage, the new framework will require drivers to actively select (or ‘opt in’ to) many benefits that were previously automatic, which may result in higher premiums for those who wish to maintain broader protection. 

Under the incoming framework, only medical, rehabilitation, and attendant care benefits will remain mandatory across all policies. Most other traditionally included benefits—such as income replacement, non-earner, caregiver, housekeeping, and death and funeral benefits—will become optional add-ons that policyholders must specifically select and purchase. 

For motorcyclists, this “reform” amplifies risk in two critical ways: 

1. Coverage Gaps for Injured Riders 

Today’s mandatory statutory accident benefits act as an important first layer of support after a crash, paying for income loss, home care, and essential living costs during recovery—regardless of fault. After July 1, 2026, a motorcycle rider injured in a collision might find the coverage they assumed they had simply isn’t there—unless it was specifically selected on their insurer’s form. A rider without income replacement benefits or caregiver benefits, for example, could be left bearing those losses themselves or forced to rely more heavily on a tort action to recover damages.  

2. Greater Litigation and Higher Stakes 

As these benefits become optional, more injured riders will inevitably find themselves relying on tort claims (claims against another at-fault driver, in most cases) to secure financial compensation for lost income and other losses that aren’t covered automatically. Unlike “no-fault” statutory accident benefits, tort recovery for pain and suffering—and certain other damages—in Ontario is constrained by statutory thresholds, often requiring proof of a serious and permanent impairment (commonly referred to as a “threshold injury”), and can involve extended timelines and extensive evidentiary demands. This shift increases both the need for legal representation and the complexity of the legal fight ahead. It also changes how insurers participate in the broader recovery process: benefits that once flowed promptly through a rider’s own policy may no longer exist at all, placing more pressure on injured parties to demonstrate fault and damages through litigation. 

Practical Takeaways for Riders

• Review your policy now. Before the riding season begins, riders should understand what benefits their current auto or motorcycle-related coverage includes—particularly if their renewal will occur after July 1, 2026. New policies issued after July 1, 2026, will reflect these new changes. If your policy already in place renews after July 1, 2026, confirm whether previously selected benefits will carry forward by default or whether changes require your express consent. 

• Talk to your broker or insurance representative (particularly if buying insurance directly). Deciding what benefits to add should not be an afterthought. Simply lowering your premium by dropping coverage now could cost far more after a crash. Many of the motorcyclists who retain me after a serious collision were not aware of the optional benefits they could have selected—even before the upcoming changes. For accident victims who are fortunate enough to have strong extended health benefits, the July 1, 2026, reforms also introduce a change: auto insurers will become first payor for medical and rehabilitation expenses (excluding medication). This may reduce early exhaustion of an injured person’s collateral health coverage, although it remains to be seen if this change will make a meaningful difference. 

• Plan for litigation realities. Consider speaking with an experienced personal injury lawyer. For victims of serious motorcycle collisions, missing accident benefits means liability claims may become the primary route to compensation. Hiring a lawyer who understands procedural thresholds, expert evidence requirements, and valuation principles is critical. 

Why This Matters 

For those of us who ride a motorcycle, we know why we love it, but riding inherently carries elevated physical risk compared to enclosed vehicles. We can mitigate that risk (wear protective clothing, drive defensively, ride for the conditions, etc.), but part of our risk planning should also include a post-accident coverage plan.  So, as we head into spring, riders should get ready to enjoy the season, but also be mindful that the insurance safety net in Ontario is changing. Being informed and prepared isn’t just common sense; it could make all the difference after a life-altering crash. See you out there. 

Graham Bennett is a partner with Lerners LLP practicing from its Waterloo Region office. Graham is certified by the Law Society of Ontario as a Specialist in Civil Litigation and has spent his adult life riding motorcycles.