Wrriten By: Savannah Snyder, and Emma Funston-Clarke, Student-at-Law
8 Minute Read
After a motor vehicle collision, one of the first questions many injured people ask is simple: which insurance company pays for Accident Benefits? In many cases, the answer is straightforward. In others, especially where multiple insurance policies are available, insurers can disagree about who is responsible.
That disagreement is known as a priority dispute. While insurers sort out responsibility, injured people may be left worrying about treatment approvals, income replacement, and other much-needed support. With changes to Ontario’s Accident Benefits system expected in July 2026, understanding priority disputes is more important than ever.
Accident Benefits Explained
To start, it helps to understand what Accident Benefits are. Accident Benefits are “no-fault” benefits available to anyone injured in a collision, regardless of who was at fault. These benefits are intended to support your recovery and financial stability after a motor vehicle collision. You can learn more about Accident Benefits in our blog post here.
What is a Priority Dispute?
A priority dispute is a dispute between two or more insurance companies that disagree over which insurer is responsible for an injured party’s Accident Benefits after a motor vehicle collision. The hierarchy of which insurance company pays is dictated by section 268 of Ontario’s Insurance Act:
- First: your own auto insurer
- Then: the insurer of the vehicle you were an occupant of
- Next: the insurer of any other vehicle involved in the accident
- Lastly: the Motor Vehicle Accident Claims Fund, if no other coverage applies.
Although the priority rules may sound simple, small differences in a person’s circumstances can change which insurer is responsible. Common examples include:
- Household living arrangements. If you live with a spouse, parent, or other relative who has auto insurance, their policy may affect which insurer is responsible.
- Priority may turn on whether you meet the definition of dependency on a named insured under another policy. For example, a young adult living with their parents may be injured while riding as a passenger in a friend’s car. In that situation, the friend’s insurer may argue the claimant is a dependant and that the parents’ insurer should respond instead.
- Regular use of an automobile. If you regularly use a vehicle through work, disputes can arise about whether that vehicle was made available to you at the time of the accident.
- Uncertain or changing living arrangements. If you have recently moved or lived in a short-term housing arrangement, it may be unclear which policy applies. For example, a student who has recently left their parents’ home may still be treated as a dependant depending on timing and financial ties, which can lead to a dispute between insurers.
How Priority Disputes are Currently Handled
Ontario’s system requires a “pay now, dispute later” system under O. Reg 283/95 – Disputes Between Insurers. This ensures that the first insurer to receive a completed application for Accident Benefits start paying immediately, even if it thinks another insurer should be responsible.
Strict timelines apply for insurers to investigate promptly and start a priority dispute. Typically, an insurer must give written notice within 90 days of receipt of a completed application for benefits to every insurer who it claims is required to pay under that section.
An injured person may be required to attend an examination under oath (“EUO”) as part of an insurer’s investigation into priority. An EUO is a formal, recorded question-and-answer process where the claimant is asked about issues that can affect priority, such as residency, dependency, employment, access to vehicles, and the existence of other applicable policies.
Even though the dispute is technically between insurers, an EUO can have real consequences for the injured person. The process can delay decisions while the insurer completes its investigation, and answers given under oath may be used to challenge entitlement if there are inconsistencies with the application, medical records, employment documents, or prior statements. For these reasons, it is important to have a legal representative assist you through this process.
What’s Changing in Ontario in 2026
In July 2026, Ontario’s Accident Benefits regime is expected to change, with many benefits becoming optional. One key change is the introduction of the new endorsement titled OPCF 47R – Optional Accident Benefits Coverage & Priority of Payment.
Where an OPCF 47R endorsement is issued, the insurer agrees not to rely on the usual priority rules. Instead, Accident Benefits are payable under that policy to the named insured, the named insured’s spouse, dependants, and persons listed in the policy as drivers. This means they can claim the mandatory benefits as well as any optional benefits purchased with the endorsement.
In practical terms, this means the OPCF 47R can override the usual priority framework so that optional Accident Benefits remain available. However, this typically requires the claimant to elect to proceed under the subject policy and give up any right to pursue Accident Benefits under another policy.
Potential practical effects on priority disputes may include:
- More focus on early coverage review. Insurers may examine policies sooner to determine whether optional endorsements apply.
- Greater need for accurate applications. Thoroughly filling out the Application for Accident Benefits (OCF-1) to clearly identify other automobile policies and employment status may become even more important.
- Continued complexity where multiple policies exist. Even with reforms, households with several vehicles, mixed personal/commercial use, or blended families may still face insurer disputes.
- Increased importance of prompt legal advice. As rules change, misunderstandings about entitlement or priority can become more common during the transition period.
What These Changes Mean for Clients
For injured people, the key takeaway is simple: do not assume insurers will automatically sort everything out quickly. The 2026 reforms may improve some processes if an OPCF 47R endorsement is issued but they may also create temporary uncertainty while insurers, adjusters, and claimants adapt to new rules.
This highlights the importance of drivers opting in to purchase optional benefits, so they have a stronger financial safety net and access to the treatment they may need if they are injured in a motor vehicle collision.
Injured people should expect that:
- Documentation will matter more than ever
- Policy details may be reviewed closely
- Optional endorsements could affect available compensation
- Multiple insurers may still dispute responsibility
What to Do If Multiple Insurers are Involved
If you believe more than one insurer may be connected to the collision, take these steps promptly:
- Report the accident. Notify your insurer as soon as possible.
- Apply for benefits quickly. Submit your Accident Benefits application without unnecessary delay.
- Keep records. Maintain copies of claim forms, emails and letters, treatment plans, denials or delays, and notes of phone calls.
- Identify all policies. Identify any policies connected to your own vehicle, household family members, employer vehicles, and the vehicle involved in the collision
- Follow up consistently. Do not assume silence means the claim is progressing.
How a Lawyer Can Help in Priority Disputes
Priority disputes can become frustrating quickly. An experienced lawyer can help by:
- Reviewing policies to ensure an application for benefits is made to the correct insurer
- Ensuring applications are completed correctly
- Pressing insurers to process benefits without delay
- Challenging wrongful denials
- Coordinating Accident Benefits and tort claims
- Reducing stress so you can focus on recovery
Where rules are changing, experienced guidance becomes even more valuable.
Final Thoughts
Priority disputes in Ontario are common whenever multiple insurance policies may apply after a collision. With Ontario Accident Benefits changes on the horizon, it is more important than ever to understand your rights and act quickly after a collision.
If you or a loved one has been injured in a collision and needs help navigating the Accident Benefits process, our team at McLeish Orlando can guide you through next steps and help protect your entitlement to benefits.
