Is the Caregiver Benefit Still Included in Ontario Auto Insurance After July 2026?

Co-Author: Michelle Bragg, VP Personal Lines, RIBO-Licensed Broker | Last Reviewed: July 2026

Is the Caregiver Benefit Still Included in Ontario Auto Insurance After July 2026?

No. As of July 1, 2026, the caregiver benefit is no longer automatically included in Ontario auto insurance policies. Under the new Statutory Accident Benefits Schedule (SABS), the caregiver benefit is now an optional coverage that policyholders must actively add to their policy. If you care for dependants—children, elderly parents, or family members with disabilities—this change directly affects your financial protection if you're injured in a car accident and can no longer provide care.

This article is provided for general informational purposes only and does not replace a review of your individual insurance needs. The descriptions of Accident Benefits in this article are a summary of the statutory accident benefits under Ontario Regulation 34/10. Do not rely on this summary alone. For complete details about your coverage, please refer to your insurance policy. This is not legal or insurance advice. Speak with a licensed insurance broker to fully understand your coverage choices and ensure you have the benefits that meet your needs.

What Is the Caregiver Benefit in Ontario Auto Insurance?

The caregiver benefit is a form of accident benefit coverage that reimburses you for the cost of hiring replacement caregiving services when you're injured in a car accident and temporarily unable to care for your dependants.

Before July 1, 2026, this benefit was included as part of Ontario's standard auto insurance policy. Now, it's optional—and many drivers may not realize it's been removed unless they review their policy closely.

Who Qualifies as a Dependant?

Under SABS, a dependant is typically:

• A child under 18 years of age
• An adult child who is financially dependent due to disability
• An elderly parent or relative who lives with you and relies on your care
•  A spouse who requires assistance due to illness or disability

If you're the primary caregiver for any of these individuals, you could face significant out-of-pocket costs if you're injured and unable to provide care—unless you've added the optional caregiver benefit to your policy.

What Changed on July 1, 2026?

Ontario's auto insurance system underwent a major overhaul on July 1, 2026, when the updated SABS regulations took effect. According to the Financial Services Regulatory Authority of Ontario (FSRA), these changes were designed to reduce insurance costs and simplify coverage options—but they also shifted more responsibility onto policyholders to choose the right protections.

Key Changes to the Caregiver Benefit:

• Removed from standard coverage: The caregiver benefit is no longer included by default in all policies.
• Now optional: You must elect to add it when purchasing or renewing your policy.
• Different limits available: Depending on your insurer, you can choose daily or weekly benefit amounts.
• The Caregiver Benefit may be offered for either an impairment or a catastrophic impairment, depending on the options available through the insurer.
• No automatic refund: If you don't need this coverage, removing it (or not adding it) may reduce your premium, but the savings vary by insurer and driver profile.

This is one of several optional accident benefits Ontario drivers now need to evaluate carefully.

How Much Does the Caregiver Benefit Pay?

The caregiver benefit amount varies depending on the policy you select and the insurer you're with. In most cases, the benefit pays:

• $50 to $100 per day for replacement caregiving services
• Up to a maximum weekly or annual cap, often $150 to $500 per week
• Benefits are typically payable for up to 104 weeks (two years) following the accident

This money can be used to hire:

• A home care worker
• A babysitter or nanny
• A personal support worker (PSW) for elderly dependants
• A respite caregiver for a family member with disabilities

The benefit is intended to cover reasonable and necessary expenses. You'll need to provide receipts and documentation to your insurer when making a claim.

Who Needs the Caregiver Benefit in Ontario?

Not everyone needs this coverage—but for certain households, it could be essential. Consider adding the caregiver benefit if you:

Are the primary caregiver for young children

If you're a stay-at-home parent or the main person responsible for school drop-offs, meals, and daily care, the caregiver benefit can pay for temporary childcare while you recover from injuries.

Care for elderly parents or relatives

Many Ontario families provide unpaid care for aging parents who live with them or nearby. If you're injured and can no longer assist with bathing, meals, or medication management, this benefit can pay for professional support.

Support a family member with a disability

If you care for a child or adult with special needs, replacing your caregiving labour can be expensive. The caregiver benefit helps cover those costs during your recovery.

Are a single-income household

In households where one person works and the other stays home to provide care, losing the caregiver's ability to work (even unpaid work) creates a financial gap. This benefit fills that gap.

Don't have disability insurance

Many people assume their disability insurance will cover caregiving costs—it won't. Disability insurance replaces lost income, not the cost of hiring someone to care for your dependants. If you don't have other coverage, the caregiver benefit is a critical safety net.

Who Can Skip the Caregiver Benefit?

You may not need this coverage if:

• You have no dependants
• You have a partner or family member who can provide care if you're injured
• You have robust disability insurance and flexible family support
• You're willing to self-insure and cover caregiving costs out of pocket

However, even in dual-income households, consider what would happen if the primary caregiver were seriously injured. Could your family afford $500 to $1,000 per week in professional care services for several months? If not, the caregiver benefit may be worth the added premium.

How Much Does It Cost to Add the Caregiver Benefit?

The cost to add optional caregiver coverage varies by insurer, driver profile, and the benefit amount you select. In general, expect to pay:

• $50 to $150 per year for basic caregiver coverage
• Higher premiums for higher daily limits (e.g., $100/day instead of $50/day)
• Lower premiums if you bundle it with other optional benefits

A BIG broker can provide a personalized quote based on your household needs. Learn more about how optional coverages work in our guide to car insurance in Ontario.

Do I Need the Caregiver Benefit If I Have Disability Insurance?

This is one of the most common questions Ontario drivers ask—and the answer is usually yes, you still need it.

Disability insurance replaces a portion of your lost income if you're unable to work due to injury or illness. It does not pay for the cost of hiring someone to care for your dependants.

The caregiver benefit, on the other hand, is designed specifically to reimburse you for replacement caregiving services. The two coverages serve different purposes and do not overlap.

If you're unsure how your disability insurance interacts with your auto insurance policy, a BIG broker can review both policies and help you identify any gaps.

What Else Is Now Optional Under SABS 2026?

The caregiver benefit is just one of several coverages that moved from mandatory to optional under the 2026 SABS changes. Other optional benefits include:

• Death and funeral benefits (previously $50,000 minimum)
• Enhanced medical and rehabilitation benefits (above the standard $1 million)
• Income replacement benefits (at higher percentages of pre-accident income)
• Indexation (automatic inflation adjustments)

For a more focused explaination on income replacement benefits, read our blog about it.

How to Add the Caregiver Benefit to Your Policy

If you've decided you need caregiver coverage, here's how to add it:

1. Contact your broker or insurer: Let them know you want to add optional caregiver benefits.
2. Choose your benefit amount: Decide on a daily or weekly limit that reflects realistic caregiving costs in your area.
3. Review your premium: Your broker will provide a quote showing the added cost.
4. Update your policy: The change typically takes effect immediately or at your next renewal.

If you're shopping for new car insurance, make sure to ask about caregiver benefits during the quoting process.

What Happens If I'm Injured and Don't Have Caregiver Coverage?

If you're injured in a car accident and don't have the caregiver benefit, you'll be responsible for paying out of pocket for any replacement care your dependants need. Depending on the severity of your injuries, this could mean:

• Hiring a babysitter or nanny: $15 to $25 per hour
• Engaging a PSW for elderly care: $25 to $40 per hour
• Arranging respite care for a family member with disabilities: $100 to $200 per day

Over weeks or months, these costs add up quickly—and they're not covered by car insurance in Canada unless you've specifically added the caregiver benefit.

Real-World Example: Why the Caregiver Benefit Matters

Consider a family in Mississauga with two children under 10. The primary caregiver is injured in a car accident and requires surgery and physiotherapy for 12 weeks. Without the caregiver benefit, the family hires a nanny at $20/hour, 8 hours per day, 5 days per week:

• Weekly cost: $800
• 12-week cost: $9,600

With a caregiver benefit that pays $75/day ($375/week), the family receives:

• Total benefit: $4,500 over 12 weeks

The family still pays $5,100 out of pocket—but the benefit significantly reduces the financial burden during an already stressful time.

Frequently Asked Questions

Is the caregiver benefit automatically included in my Ontario auto insurance?

No. As of July 1, 2026, the caregiver benefit is optional and must be added to your policy. It's no longer part of the standard coverage under the updated SABS regulations. Review your policy or speak with your broker to confirm whether you have it.

How much does the caregiver benefit pay per day in Ontario?

Most Ontario insurers offer caregiver benefits that pay between $50 and $100 per day, depending on the policy you select. Weekly caps typically range from $250 to $500. Check your policy wording for specific limits and durations.

Who qualifies as a dependant under the caregiver benefit?

A dependant is typically a child under 18, an adult child with a disability who relies on your financial support, an elderly parent living with you, or a spouse requiring assistance due to illness or disability. Your insurer may have specific definitions in your policy.

Do I need the caregiver benefit if I have disability insurance?

Yes. Disability insurance replaces lost income but does not cover the cost of hiring replacement caregivers for your dependants. The caregiver benefit is designed specifically to reimburse those expenses and serves a different purpose than disability coverage.

How much does it cost to add the caregiver benefit to my auto insurance?

The cost varies by insurer and coverage amount but typically ranges from $50 to $150 per year. Your premium will depend on your driving record, location, and the daily benefit limit you choose. A broker can provide an accurate quote.

Can I remove the caregiver benefit to save money?

Yes, but only if you're confident you won't need it. If you have no dependants or strong family support, removing it may reduce your premium. However, if you're a primary caregiver, the savings are rarely worth the risk of going without coverage.

Not Sure Which Optional Benefits to Keep?

The 2026 SABS changes give Ontario drivers more choice—but also more responsibility. If you're not sure whether the caregiver benefit makes sense for your household, a BIG broker can walk you through your options, explain your coverage in plain language, and help you build a policy that fits your family's needs.

Get in touch with a broker today or explore what car insurance covers in Canada to learn more about accident benefits and optional coverages.