This is the third entry in our Accidents Benefits series. You can find the first entry here where we discuss the basic changes the Provincial Government made to the accident benefits portion of Ontario auto policies during the 2016 auto reform. In the second entry, we explored the Medical, Rehabilitation & Attendant Care Benefit.

Today, we’re going to shine the spotlight on one of the optional coverages available to policyholders for purchase: the Income Replacement benefit.



If you are injured in an auto accident and are unable to work, the Income Replacement benefit provides coverage for a regular weekly income starting one week after the accident. The benefit payout is 70% of your gross income up to a maximum of $400 per week.



Policyholders have the option to increase their weekly maximum to $600, $800, or $1,000 per week. Keep in mind that, regardless of the limit you select, the amount you receive will always be 70% of your gross income up to the weekly maximum you have selected.

This is a very important coverage option everyone should explore, especially those who:

  • are self-employed
  • have no benefits through work or other associations
  • make over $30,000 per year

All policyholders should review and re-asses this coverage on an annual basis. A lot can happen in a year: a promotion, a new job, starting your own business. Your auto policy’s limits and coverages need to be reviewed and updated as your lifestyle changes.

Contact your broker today to review your current limits and go over the other coverage options available to you. Don’t wait until you’ve had an accident to find out you don’t have the coverage you need.