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What Is the OAP 1 Standard Ontario Auto Policy?

Published on August 9, 2026 by MyBrokers Communications · 6 minute read

Shared for information only. Not insurance advice. For coverage questions, talk to a licensed broker.

Ontario drivers who read their auto insurance documents closely will notice the same form number appearing again and again: OAP 1. What is the OAP 1 standard Ontario auto policy, and why does nearly every private car insurance contract in the province use it? The answer explains why an Ontario policy from one insurer looks structurally similar to a policy from a competitor, even when the price and add-ons differ.

This article walks through what OAP 1 actually is, the sections that make it up, which ones are mandatory, and how a 2026 change to accident benefits fits into the picture. It is written as general information, not a recommendation about any specific policy or insurer.

What Is OAP 1?

OAP 1, short for Ontario Automobile Policy 1, is the standard owner's auto insurance policy form approved by Ontario's insurance regulator for use by every private insurer licensed to sell auto insurance in the province. Instead of each company drafting its own contract language from scratch, provincial rules require insurers to build their policies on this common template, which is organized into numbered sections covering liability, injury benefits, and vehicle damage.

Because the structure is standardized, an Ontario driver comparing quotes from two different insurers is generally comparing the same underlying sections and definitions, with the differences showing up mainly in limits, deductibles, and optional endorsements layered on top.

The Mandatory Sections of OAP 1

Four sections of OAP 1 are required on every policy issued in Ontario, under the province's Compulsory Automobile Insurance Act.

Third-party liability, covered in Section 3, is designed to respond if an insured driver is found responsible for injuring someone, causing a death, or damaging another person's property. Ontario law sets a minimum liability limit of $200,000, although many drivers carry higher limits through their policy.

Statutory accident benefits, in Section 4, are intended to provide medical, rehabilitation, and other support to people hurt in a collision regardless of who caused it. This section is discussed in more detail in the next section, since it changed in 2026.

Uninsured automobile coverage, in Section 5, is meant to respond if an insured person is hurt or killed by a driver who carries no insurance or by a hit-and-run driver who cannot be identified.

Direct Compensation Property Damage, or DCPD, in Section 6, generally lets a driver who is less than 100 percent at fault claim vehicle damage through their own insurer rather than pursuing the other driver's company. Ontario's Fault Determination Rules govern how that fault percentage gets assigned, which in turn shapes how much of a DCPD claim a driver can typically recover.

Coverage details, exclusions, and dollar limits vary by policy and insurer. Only the wording of an actual policy, reviewed with a licensed broker, can speak to what applies in a specific situation.

What Changed With Ontario's 2026 Accident Benefit Reform

Ontario's accident benefits section has historically bundled together several types of support, from medical treatment to income replacement to caregiver assistance, as part of the mandatory base policy. That changed for policies with effective dates on or after July 1, 2026.

According to the Financial Services Regulatory Authority of Ontario (FSRA), medical, rehabilitation, and attendant care benefits remain mandatory for every OAP 1 policy. Other accident benefits, including income replacement, non-earner, caregiver, housekeeping and home maintenance, visitor expenses, and funeral or death benefits, became optional coverage that a driver can choose to add, adjust, or decline.

For policies renewing on or after that date, existing benefit limits generally carry forward automatically unless a policyholder opts out in writing, per FSRA guidance. The practical effect is that two Ontario drivers with an OAP 1 policy can now end up with meaningfully different accident benefit coverage depending on the choices they made at renewal, which is a shift from the largely uniform benefits package the section used to guarantee.

Optional Coverage Under Section 7

Section 7 of OAP 1 is designed to address loss of, or damage to, the insured vehicle itself, and it is the one major piece of the standard policy that is not mandatory under Ontario law. This is the section that typically houses collision coverage, which is generally designed to respond to damage from a crash regardless of fault, and comprehensive coverage, which is aimed at non-collision events such as theft, fire, vandalism, or hitting an animal. A closer look at how comprehensive car insurance is generally structured is useful background, since the concept works similarly across provinces even though the policy form differs.

A driver who owns a vehicle outright can generally choose whether to add Section 7 coverage at all, weighing the vehicle's value against the added premium. A lender or leasing company financing a vehicle will typically make some version of this coverage a condition of the loan or lease agreement. As with the mandatory sections, the specific inclusions and exclusions depend on the policy wording, which is worth reviewing with a licensed broker.

Benefits of the OAP 1 Standard

A standardized policy form gives Ontario drivers a consistent baseline to compare against, since every insurer's OAP 1 policy is organized around the same sections and core definitions rather than bespoke contract language that would be harder to evaluate side by side. It also means that changes the province makes, such as the 2026 accident benefit reform, apply consistently across the market instead of creating a patchwork of different rules depending on which insurer a driver happens to use.

For a driver reading a policy document for the first time, recognizing which section a particular coverage lives under, liability in Section 3, accident benefits in Section 4, and so on, makes it easier to ask a focused question about a specific part of the contract rather than treating the whole document as one undifferentiated block.

Where You'll Come Across OAP 1

Most Ontario drivers encounter OAP 1 by name at a few specific moments: when a new policy document arrives after buying a vehicle, when a renewal package explains a change like the 2026 accident benefit shift, or when a broker walks through options after a life change such as adding a driver or leasing a new car. The section numbers also come up during a claim, since an adjuster or broker will often reference "Section 4" or "Section 6" when explaining which part of the policy applies to a particular loss.

Drivers who move to Ontario from another province will also see the form for the first time at that point, since OAP 1 is specific to Ontario and differs in structure from the policy forms used elsewhere in Canada.

Ask a Licensed Broker About Your OAP 1 Coverage

The sections of OAP 1 set the outer shape of an Ontario auto policy, but the limits, deductibles, and optional endorsements within that shape are where individual coverage decisions actually happen, particularly after the 2026 accident benefit changes made some of that section optional for the first time. A licensed broker can walk through how your current OAP 1 policy is structured and what questions are worth raising at your next renewal.

MyBrokers works with licensed brokers who help Ontario drivers make sense of their car insurance policy, including how OAP 1's sections apply to their coverage. Start a vehicle insurance quote to connect with a broker about your options.

Common questions

What is the OAP 1 in Ontario car insurance?

OAP 1 is the standardized Ontario Automobile Policy that private insurers must use when they write owner's auto insurance in the province. It sets out the numbered sections, such as liability and accident benefits, that every policy is built from, though the specific limits and endorsements attached to it can vary by insurer.

What coverages are mandatory under OAP 1?

Third-party liability, statutory accident benefits, uninsured automobile coverage, and Direct Compensation Property Damage are the sections every OAP 1 policy is required to include under Ontario's Compulsory Automobile Insurance Act. Loss or damage coverage for the insured vehicle itself, in Section 7, is the one major section that remains optional.

What changed with Ontario accident benefits on July 1, 2026?

As of July 1, 2026, medical, rehabilitation, and attendant care benefits remain mandatory under OAP 1, while other accident benefits such as income replacement and caregiver benefits became optional add-ons. Existing policyholders generally keep their current benefit limits at renewal unless they opt out in writing, according to Ontario's Financial Services Regulatory Authority.

Is loss or damage coverage under OAP 1 mandatory?

No, Section 7 of OAP 1, which covers loss of or damage to the insured vehicle from causes like collision, theft, or fire, is optional and is added through separate coverage choices rather than built into the base policy. A lender financing or leasing a vehicle will typically require some form of it as a condition of the loan.

Important: information, not advice

Articles on this blog are shared for general information and education only. They are not insurance advice, they are not statements or recommendations from a licensed broker, and they may not reflect the terms of any policy you hold. MyBrokers Insurance accepts no liability for decisions made based on this content. For advice on any coverage, limit, or insurance question, speak directly with a licensed MyBrokers broker.

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