Overview
The increasing cost of repairs, parts shortages and rising auto thefts are all driving up insurance rates across Canada. But the single biggest reason for the increase in rates in Alberta is the increasing costs of personal injury claims.
Alberta’s government asked independent experts to look at systems that could reduce the costs of auto insurance and improve the sustainability and stability of the insurance system.
Oliver Wyman, the Automobile Insurance Rate Board’s actuary, focused its work on comparing average premiums under different existing auto insurance systems, largely across Canada. The Nous Group, an internationally renowned economist group, examined the broader costs and benefits of these different auto insurance models.
Based on their findings, feedback of more than 16,000 Albertans, and consultations with auto insurance stakeholders, the government is planning to implement a “Care-First” auto insurance system in Alberta on January 1, 2027. This would be privately-delivered, allowing Albertans to continue choosing their insurers in a competitive market.
The Care-First system would focus on providing improved medical, rehabilitation, and income support benefits for all Albertans injured in a collision, while continuing to hold at-fault drivers accountable through higher premiums. Albertans injured in a collision would be able to access these enhanced benefits without the need to sue.
- Read the report: Auto Insurance Changes in Alberta (includes the Oliver Wyman and Nous Group studies)
Care-First comparisons
Below are tables showing the comparison between our current insurance system and the Care-First system for common, serious and catastrophic injury treatment, compensation and timelines.
Common injury
Table 1. Current court system vs. the Care-First system for common injury treatment, compensation and timelines.
| Court system (current) | Care-First system | |
|---|---|---|
| Treatment | Up to 21 pre-approved physiotherapy or chiropractic visits. | Treatment provided for as long as there is a “measurable benefit”. |
| Compensation | Maximum of $6,061 for pain and suffering damages plus out-of-pocket expenses. | No pain and suffering damages, but out-of-pocket expenses can be claimed. |
| Timelines | Typically claim is resolved (treatment and compensation) within months. | Typically claim will be resolved (treatment and compensation) within months. |
Serious injury
Table 2. Court system vs. the Care-First system for serious injury treatment, compensation and timelines.
| Court system (current) | Care-First system | |
|---|---|---|
| Treatment | Up to $50,000 for 2 years. If more treatment is required, must sue at-fault driver. | No maximum or time limit for treatment that provides a measurable benefit. |
| Compensation | Pain and suffering damages, as determined by the courts, loss of earning capacity, plus out-of-pocket expenses. | May be entitled to a permanent impairment lump sum (between $1,000 and $187,000), income replacement benefit, plus out-of-pocket expenses. |
| Timelines | Claims can take years to resolve. | Claims would be resolved when maximum medical recovery is achieved. |
Catastrophic injury
Table 3. Court system vs. the Care-First system for catastrophic injury treatment, compensation and timelines.
| Court system (current) | Care-First system | |
|---|---|---|
| Treatment | Up to $50,000 for 2 years. If more treatment is required, must sue at-fault driver. | No maximum or time limit for treatment that provides a measurable benefit. Ancillary supports for the rest of their life. |
| Compensation | Pain and suffering damages, as determined by the courts, loss of earning capacity, plus out-of-pocket expenses. | May be entitled to a permanent impairment lump sum (maximum $295,000), income replacement benefit, plus out-of-pocket expenses. |
| Timelines | Claims can take years to resolve. | Would receive treatment and care for the rest of their life. |
Get the best rate
There are steps you can take to make sure you get the best auto insurance rates.
Alberta’s Automobile Insurance Rate Board also has more information on getting the best auto insurance rates: shopping guide for auto insurance and rate comparison tool.
News
- Better, faster, cheaper auto insurance (March 24, 2025)
- Communicating better, faster, affordable auto insurance | Mieux communiquer : une assurance automobile améliorée, plus rapide et abordable (November 25, 2024)
- Better, faster, more affordable auto insurance | Une assurance automobile meilleure, plus rapide et plus abordable (November 21, 2024)
- Have your say on auto insurance (April 26, 2024)
- Good drivers to benefit from auto insurance changes (November 1, 2023)
- Taking action on insurance (January 26, 2023)
- Relief for Alberta drivers (October 29, 2020)
- Auto insurance reform seeks public input (February 18, 2020)
- Advisory committee to address automobile insurance (December 18, 2019)