Province making way for ‘care-first’ auto insurance

Posted on April 23, 2026 by Sunny South News

Southern Alberta Newspapers

The Government of Alberta tabled legislation earlier this month laying groundwork for an overhaul of Alberta’s auto insurance market.

Bill 27 included amendments that move the province to a “care-first” auto insurance system by Jan. 1, 2027.

Care-first insurance, also referred to as “no-fault,” will see an individual’s own insurer pick up the tab for medical treatment, rehabilitation and income replacement if they are injured in a car accident. With more streamlined access to these kinds of supports, proponents say wait times can be cut down from years to weeks.

However, critics say the new system curtails the right for not-at-fault drivers to sue if they are injured in an accident, and dispute the province’s claim that it will lower premiums.

The Government of Alberta says the changes will help Albertans avoid costly court and lawyer fees.

“The new auto insurance system will reduce time and money spent on litigation, and it will help deliver more stable and predictable auto insurance rates to Alberta drivers when the new system comes into effect,” Finance Minister Nate Horner said when the legislation was tabled April 1.

The Insurance Bureau of Canada has applauded the change, saying it will improve availability of coverage and the price of premiums for Alberta consumers.

“We congratulate the Alberta government for taking continued action to deliver an auto insurance system that puts Albertans back in the driver’s seat,” said vice-president of IBC Pacific and Western Aaron Sutherland in a statement following the initial announcement last year.

Sutherland says government policies were suppressing auto insurance rates below the cost of providing coverage, which drove insurers out of Alberta and created more demand and fewer options for drivers. He sees the move to care-first as a step in the right direction to address strain in Alberta’s insurance market.

Alberta’s auto insurance premiums are among the highest in Canada. According to a recent report by the Automobile Insurance Rate Board, the average premium in Alberta is $1,835.

A report released by the consulting firm Oliver Wyman estimates Albertans could save $366 per year for private passenger vehicles under care-first compared to the current model. The report’s authors however acknowledge significant uncertainty related to pricing a new insurance product.

The Alberta Civil Trial Lawyers Association says the report’s optimistic assumptions aren’t justified given the uncertainty.

ACTLA is concerned that significant questions remain regarding dispute handling, which is being shifted from the responsibility of the courts to the responsibility of the insurers.

“Care-first doesn’t eliminate disputes,” said Laura Comfort, chair of ACTLA.

“It changes where and how they happen. People will still disagree about whether benefits are available, how long they should last, what treatment is reasonable and what medical evidence is required. If those disputes are slow, complex, or expensive to resolve, access to justice suffers – and so does premium adequacy.”

They also dispute the blame the IBC has put on litigation as the primary driver of costs.

The Alberta Superintendent of Insurance’s most recent annual report pointed to property insurance claims – primarily driven by the August 2024 Calgary hailstorm and the July 2024 Jasper fire – as the leading cause of insurer payout.

Meanwhile, liability insurance, which defends and pays out lawsuits, remained stable and profitable.

ACTLA worries vulnerable Albertans will end up on the hook for affordability concerns that have nothing to do with them.

“Albertans do not believe that affordability should come at the expense of those who can least afford it – innocent victims with permanent, lifelong injuries,” said former ACTLA Chair Jillian Gamez.