Ontario auto insurance changed on July 1, 2026, giving drivers more choice over certain Accident Benefits included in their policies.
More choice can be helpful, but it also makes understanding your coverage more important. One option you may come across is An Impairment coverage versus Catastrophic Only coverage. The names may sound similar, but the level of protection can be very different.
At Merit Insurance, we believe the best way to insure you is to know your story. That means helping you understand your options before making changes to your coverage.
What Changed With Ontario Accident Benefits?
Medical, rehabilitation and attendant care benefits remain mandatory in Ontario, but several Accident Benefits that were previously automatically included are now optional.
These can include benefits such as:
- Income Replacement
- Caregiver
- Housekeeping and Home Maintenance
- Death and Funeral Benefits
For certain benefits, including Caregiver and Housekeeping and Home Maintenance, you may also have a choice between broader An Impairment coverage and more limited Catastrophic Only coverage.
What Does An Impairment Mean?
An Impairment coverage provides broader protection.
It may provide access to applicable benefits for qualifying injuries that do not meet the catastrophic impairment threshold, as well as injuries that are considered catastrophic.
In simple terms:
An Impairment = broader eligibility for coverage.
This can matter because an injury does not have to be classified as catastrophic to significantly affect your daily life.
For example, an automobile accident could leave someone temporarily unable to care for a family member, manage household responsibilities or complete normal day-to-day activities.
What Does Catastrophic Only Mean?
Catastrophic Only coverage is more restrictive.
The applicable benefit is available only when an injury meets Ontario’s specific definition of a catastrophic impairment.
This can include certain very serious injuries, such as severe brain injuries or certain amputations, when the required criteria are met.
An injury can still be serious and disruptive without meeting the legal definition of catastrophic impairment.
That is the key distinction.
| Option | What It Covers |
| An Impairment | Qualifying non-catastrophic and catastrophic impairments, subject to policy terms and eligibility requirements. |
| Catastrophic Only | Only injuries that meet the specific catastrophic impairment threshold. |
Why Does This Matter?
Catastrophic Only coverage may cost less, but a lower premium can also mean less protection.
Before changing your coverage, consider:
- Do you care for children, aging parents or another family member?
- Who manages your household responsibilities?
- Could you afford to pay for help if you were injured?
- Do you have workplace or other insurance benefits available?
- How much financial risk are you comfortable taking on?
There is no single answer that is right for every driver.
The Merit Difference
Insurance terminology can make an important coverage decision sound like a simple checkbox.
That is where your Merit broker can help.
Your broker can review your current Accident Benefits, explain what is mandatory and optional, and help you understand how An Impairment and Catastrophic Only coverage may affect you.
Before making changes to your Ontario auto insurance Accident Benefits, speak with your Merit broker and review the options that fit your needs.
Coverage, eligibility, limits and options may vary by insurer and individual policy. Speak with your Merit broker for information specific to your coverage.
