The Care-First system comes into effect January 1, 2027. Until then, existing policies and claims will continue under the current system. Converting to the Care-First system is automatic.
Auto insurance reform in Alberta
Starting January 1, 2027, Alberta will be making changes to how all auto insurance policies work in the province.
Highlights
- The new Care-First system comes into effect January 1, 2027
- The right to sue will be limited — instead, enhanced accident benefits will be a part of every policy
- Enhanced accident benefits will be available to anyone injured in an automobile accident, so they can focus on healing and recovery
- Drivers found at-fault in an accident will still be held accountable
How auto insurance works before Care-First
Under the tort system, if you’re injured in an auto accident, you would need to sue the at-fault driver for damages beyond basic benefits covered by your policy. This could take months or even years to resolve, delaying your access to certain levels of care.
Here’s what’s changing with the Care-First system
- Starting January 1, 2027, Alberta’s auto insurance will switch to a Care-First system
- Anyone injured by an auto accident (e.g. drivers, passengers, or pedestrians) will receive benefits
- Drivers found to be at-fault in an accident will face higher insurance premiums
- You can still sue at-fault drivers if they’re found guilty of certain serious offences, like dangerous operation of a vehicle, impaired driving, or fleeing law enforcement
These changes will help people injured in an auto accident receive benefits faster, while providing long-term sustainability and stability for Albertans.
Accident benefits before and after Care-First launches
Tort system
Medical Payments
Supporting recovery up to $50,000 for reasonable and necessary expenses incurred within 2 years of the accident date.Death, Grief Counselling, Funeral and Total Disability Benefits
Provides lump sum payments to surviving spouse and dependants, covers funeral expenses and income replacement benefit if unable to work due to an accident.
Uninsured Motorist Coverage
In case of injury involving an uninsured driver.
Care-First system
Health Care and Related Expenses
Includes treatment as long as it supports recovery.Income Replacement and Other Monetary Benefits
Replace employment income and childcare expenses.
Permanent Impairment
Available if you sustain an impairment after an accident that doesn't fully heal.
Death Benefits and Related Expenses
Includes funeral expenses and grief counselling.
Uninsured Motorist Coverage
In case of injury involving an uninsured driver.
Do policy holders need to do anything?
You won’t need to take any action, but we recommend:
- Before January 1, 2027, learning more about Care-First benefits from the Alberta government
- After your renewal, reviewing your updated insurance policy documents and your entitled accident benefits
- Talking to your financial representative about your coverage options
Frequently asked questions
Where can I get more information about Alberta’s insurance reform?
For additional information, visit the Alberta government site on insurance reform