Alberta is moving forward with major changes to its auto insurance system, providing faster care for injured motorists, and lower premiums for drivers while limiting the right to sue in most vehicle collision cases.
The proposed Automobile Insurance Act, introduced in the legislature, would transition the province to a “care-first” model starting January 1, 2027.
Nate Horner, Alberta’s Finance Minister said the act would prioritize medical care, rehabilitation, and income support for Albertans injured in vehicle crashes, while reducing costly legal battles.
The new system would provide injured Albertans with enhanced medical care, rehabilitation services, daily living assistance, and other supports. It would also include income support and retirement benefits for those unable to work or attend school due to their injuries. In cases of permanent impairment, Albertans could be eligible for long-term compensation, including a death benefit for families if a collision is fatal.
Under the proposed changes, injured drivers would lose the ability to sue in most cases. Legal action would only be permitted if the at-fault driver is convicted of a serious offence under the Criminal Code or Traffic Safety Act. Otherwise, claims for medical care and financial support would be handled directly through insurance providers.
The government argues that restricting lawsuits will reduce legal costs, speed up care, and eventually lead to lower premiums. Injured Albertans could still pursue legal action for out-of-pocket expenses not covered by their insurance.
The legislation also proposes creating an independent Alberta Automobile Care-first Tribunal, allowing Albertans to appeal decisions made by their insurers regarding benefits.
The Alberta government has yet to finalize the details of the care-first system, which is set to come into effect on Jan. 1, 2027.
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