Aug 29, 2025 in News Legal News

Legal News: Ontario Personal Injury Law Changes 2025: What Accident Victims Need to Know

Ontario’s personal injury laws saw targeted updates in 2025 that affect compensation calculations and claim strategy. The key changes involve updated monetary thresholds and deductibles for motor-vehicle tort claims, annual indexation that also touches related figures, and confirmed Statutory Accident Benefits Schedule (SABS) reforms that take effect on July 1, 2026.

For anyone injured in a car accident, slip-and-fall, workplace incident, or through medical negligence, understanding the new rules is essential. Whether you are speaking with a personal injury lawyer for the first time or already in the middle of a claim, this guide explains what changed, how it affects your rights, and what to do now.

Key Numbers at a Glance

• Indexation rate: 1.6%
• MVA non-pecuniary “vanishing” threshold: $155,965.54
• MVA tort deductible (below threshold): $46,790.05
• FLA non-pecuniary threshold for MVA claims: $77,982.13
• FLA deductible for MVA claims (below FLA threshold): $23,395.04

These figures apply to motor vehicle accident tort claims. They do not apply to slip-and-fall or medical negligence lawsuits. If your collision happened recently, a car accident lawyer can explain how the 2025 numbers affect your file.

2025 Auto-Injury Thresholds and Deductibles

Ontario adjusts the tort threshold and deductible for non-pecuniary damages each year. In 2025, the threshold rose to $155,965.54. If a court awards an amount above this threshold, no deductible applies. If the award falls below it, the court reduces the award by $46,790.05.

What this means for valuation: the threshold and deductible set your negotiation range in motor-vehicle cases. Files that sit near the line require strong medical evidence and timely settlement.

FLA Damages in MVA Cases: What Changed and What Didn’t

Relatives can claim loss of care, guidance, and companionship under the Family Law Act (FLA). The FLA does not publish a table of fixed payouts. In motor-vehicle cases, however, FLA non-pecuniary claims use the MVA tort threshold and deductible that are indexed each year.

For 2025, the FLA threshold in MVA cases is $77,982.13, and the FLA deductible is $23,395.04. For non-MVA incidents, such as slip-and-fall accidents, a slip-and-fall accident lawyer can outline how valuation differs because the tort deductible does not apply (FSRA, n.d.).

SABS Reform Timeline: What Changes on July 1, 2026

The Statutory Accident Benefits Schedule (SABS) outlines benefits available after a motor-vehicle accident, regardless of fault.

From that date, only medical, rehabilitation, and attendant care remain mandatory. Other SABS coverages, including income replacement, become optional and must be selected at renewal. If your injuries affect your ability to work, a long-term disability lawyer in Toronto can review your policy choices alongside accident benefits.

What Didn’t Change in 2025

• Limitation periods stayed the same.
• The MVA non-pecuniary threshold test is the same in 2025. You must prove a permanent serious impairment of a significant physical, mental, or psychological function, or a permanent serious disfigurement.
• Causation standards and the general approach to proof remained unchanged.

How These Changes Impact Accident Victims

Settlement and Valuation Strategy

The indexed threshold and deductible shape negotiation ranges in motor-vehicle cases. Claims near the threshold require careful timing, strong medicals, and realistic targets. Early guidance from a truck accident lawyer in Toronto helps you plan assessments that support your position.

Evidence That Clears the Bar

To pursue non-pecuniary damages in auto cases, your proof must meet the threshold test. Book diagnostics early, follow specialist recommendations, and keep treatment consistent. Work with a personal injury lawyer to organize reports and witness statements before negotiations start.

Family Claims and Case Valuation

Update valuations for eligible relatives under the FLA using the 2025 figures. Align your documentation with those amounts so the settlement package reflects both the primary claim and the family claim.

Plan Coverage and Income Support for 2026

The SABS shift arrives on July 1, 2026. Use 2025 and early 2026 to review your policy and select optional benefits at renewal. If your injuries affect your ability to work, make sure your policy choices protect income replacement and related benefits. A personal injury lawyer in Toronto can review options and explain trade-offs.

Mini Case Example: How the 2025 Deductible Works

Scenario: The court awards Alex $100,000 for pain and suffering after a rear-end crash. Because that figure sits below the 2025 threshold of $155,965.54, the court subtracts the statutory deductible of $46,790.05. Alex receives $53,209.95 for pain and suffering. If the award reached the threshold, no deductible would apply.

Family claim twist: Alex’s mother receives $40,000 for loss of care, guidance, and companionship under the FLA. Because that award is below the 2025 FLA threshold of $77,982.13, the $23,395.04 FLA deductible reduces it to $16,604.96. In a fatal case, the FLA deductible would not apply.

These examples are simplified. Actual outcomes may change based on contributory negligence, collateral benefits, set-offs, and other heads of damages. Use the 2025 numbers to shape expectations, then build proof that positions the claim above the threshold where possible.

What Accident Victims Should Do Under the New Rules

• See a doctor within 72 hours. Get diagnostics and follow-ups on record.
• Start a daily recovery log. Track pain levels, limits, missed work, and family impacts.
• Save every record. Photos, dashcam clips, receipts, treatment notes, and emails.
• Speak to a lawyer early. Get a strategy for medical assessments and negotiations.
• Review your auto policy before renewal. Choose the optional SABS benefits you want in place after July 1, 2026.
• Document income loss. Keep pay stubs, ROEs, and employer letters in one folder.

How Neinstein Personal Injury Lawyers Can Help

Ontario’s updated personal injury rules call for more than legal know-how. You need a clear, case-specific strategy. Neinstein Personal Injury Lawyers brings decades of experience with complex matters, including catastrophic injuries, medical malpractice, and long-term disability. The team manages timelines, secures evidence, and presents your case clearly so you can focus on recovery.

If you or a loved one suffered injuries, speak with a personal injury lawyer in Toronto for guidance tailored to local courts and insurers.

FAQs

Does the 2025 tort deductible apply to slip-and-fall or medical negligence?

No. The threshold/deductible apply only to motor-vehicle accident claims. For official background on 2025 indexation amounts and deductibles, see FSRA’s guidance.

What changes on July 1, 2026 under SABS?

Only medical, rehabilitation, and attendant care remain mandatory; other benefits (like income replacement) become optional at renewal. Learn how Accident Benefits (SABS) work here, and review FSRA’s auto insurance overview for context.

What proof meets the motor-vehicle threshold test?

You generally need consistent specialist evidence showing a permanent serious impairment of an important function (or a permanent serious disfigurement). Learn what to expect in our case preparation approach and review the Ontario Insurance Act (threshold provisions) for the legal test.

How do the 2025 FLA thresholds affect family claims?

Eligible relatives can claim loss of care, guidance, and companionship; apply the updated 2025 FLA figures in motor-vehicle cases when valuing these claims. Read about wrongful death claims and the Ontario Family Law Act (s.61).

Do you serve clients outside Toronto?

Yes—we represent clients across Ontario. See our Service Areas for cities and regions covered.

Injured in Ontario? Get clear, practical advice on the 2025 changes.

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