Alberta’s new Care-First insurance model will come into effect on January 1, 2027. | PHOTO: WAVEBREAKMEDIA/ENVATO
INSURANCE
Understanding Alberta’s New Care-First Auto Insurance System
Here’s how auto insurance in the province is changing.
By AMA Insider Staff
The Care-First model is intended to lower premiums and to improve benefits and supports for drivers.| PHOTO: DUSAN PETKOVIC/ADOBE STOCK
Automobile insurance has been in the news over the last few years, as Alberta looks to improve the affordability and long-term stability of the system and to improve care for people injured in collisions. The Government of Alberta has announced that starting January 1, 2027, our province will transition to a new automobile insurance model called Care-First. According to the Government of Alberta, Care-First is intended to lower premiums and improve medical and income replacement benefits, as well as accessibility supports, while continuing to hold at-fault drivers accountable through higher premiums.
While not all details have been finalized, here are the answers to some common questions based on what is known today. Is Care-First the same as No-Fault Insurance?
No. While the terms are sometimes used interchangeably, they are different. In both cases, the person who caused the accident is recognized as the person who is at fault, and in both cases, injured people process their claim and access care through their own insurance policy. However, in a pure No-Fault system, there is no ability for individuals to sue the person who caused the accident. The made-in-Alberta Care-First system not only puts care and recovery at the centre of the insurance experience, but also allows injured drivers to sue in very limited circumstances.
“Care-First changes how coverage is accessed, but in many cases, injured motorists will see greater access to benefits.”
Under Care-First, are people still held accountable if they are at fault? I don’t want to be paying for someone else’s error.
Yes. Accountability remains an important part of the system.
• Injured drivers will work with their own insurer on a care and recovery pathway, but fault will still be determined.
• At-fault collisions and traffic convictions will continue to be recorded on driving records.
• Insurance companies will still factor at-fault collisions and traffic convictions into premiums. Am I losing any coverage under Care-First that I have today?
Care-First changes how coverage is accessed, but in many cases, injured motorists will see greater access to benefits. For example:
• Under the current system, motorists injured in a collision can receive up to $600 per week in income replacement if unable to work. Under Care-First, that benefit will be significantly increased.
• Today, if you are responsible for a collision, coverage for your injuries is limited to $50,000 for two years after the accident, with no ability to sue. Under Care-First, all injured motorists will have access to the expanded Care-First benefits, regardless of fault.
How will my premiums change with Care-First?
• Premium impacts will vary for each person based on factors such as driving history, claims experience, vehicle type and others.
• Accessing care through your own insurer for a not-at-fault claim does not impact your premium.
• Care-First is intended to improve the overall affordability and stability across Alberta’s auto insurance system. Individual premium impacts will vary, but the Government of Alberta has indicated that average premiums are expected to decrease.
Helping members navigate change
For 100 years, we have been committed to helping members like you navigate change. We will continue to share clear and practical information about Care-First insurance as more details become available. AMA
Automobile insurance has been in the news over the last few years, as Alberta looks to improve the affordability and long-term stability of the system and to improve care for people injured in collisions. The Government of Alberta has announced that starting January 1, 2027, our province will transition to a new automobile insurance model called Care-First. According to the Government of Alberta, Care-First is intended to lower premiums and improve medical and income replacement benefits, as well as accessibility supports, while continuing to hold at-fault drivers accountable through higher premiums.
While not all details have been finalized, here are the answers to some common questions based on what is known today. Is Care-First the same as No-Fault Insurance?
No. While the terms are sometimes used interchangeably, they are different. In both cases, the person who caused the accident is recognized as the person who is at fault, and in both cases, injured people process their claim and access care through their own insurance policy. However, in a pure No-Fault system, there is no ability for individuals to sue the person who caused the accident. The made-in-Alberta Care-First system not only puts care and recovery at the centre of the insurance experience, but also allows injured drivers to sue in very limited circumstances.
The Care-First model is intended to lower premiums and to improve benefits and supports for drivers.| PHOTO: DUSAN PETKOVIC/ADOBE STOCK