Here’s what the government of Alberta wants you to know about the Care-First Auto Insurance model

uThe Care-First Auto Insurance model takes effect in January 2027, and the Alberta government held a briefing on Wednesday to discuss the new system.Currently, in Alberta, auto insurance is legally mandatory and consists of basic coverage plus optional add-ons for greater protection. Basic insurance covers accident benefits, offering up to $50,000 for medical care and rehab regardless of fault, direct compensation for property damage, and third-party liability protection with a minimum of $200,000 coverage, though most drivers opt for $1–2 million, reads a report provided by the government.Under the current system, only drivers not at fault in crashes can sue for extra compensation, but this process is often slow, costly, and uncertain, contributing to rising premiums for all drivers. Those found at fault have limited access to benefits, capped at $50,000, even in severe incidents.According to the report, the Care-First Auto Insurance system aims to deliver faster support for victims affected by crashes. It will prioritize timely medical care and support over legal battles, ensuring all injured parties, drivers, passengers, pedestrians, and cyclists, receive necessary treatment regardless of fault, while maintaining legal accountability and premium adjustments for at-fault drivers, reads the report.The new system also expands income replacement benefits, providing up to 90% of net income (capped at $125,000 annually) for those unable to work or study due to injuries, with payments continuing as needed up to age 65. Special provisions support students, minors, caregivers, and unpaid family workers. Caregiver and childcare expense benefits are also included, the government said in the report..Advocates say a no-fault insurance model in Alberta could take away victims’ rights, put a strain on the healthcare system.However, benefits will be denied for claimants convicted of serious driving offences, or those already unemployable before the accident. Payments end when individuals can return to work or after five years for those over 60 at the time of injury, according to the report.Here's what you need to know about access to court under the Care-First model:Under Care-First model, Albertans retain the right to sue at-fault drivers in specific situations. They can claim pain and suffering damages if the driver is convicted of certain offenses, including driving- or murder-related crimes under the Criminal Code, or impaired driving and failure to stop under the Traffic Safety Act.Injured victims may also sue for out-of-pocket expenses that exceed their auto insurance benefits, but only for costs not covered by the new system. Expenses for treatments chosen by the injured person that lack medical evidence are excluded from court claims, according to the report.Ricky Brigatta, Founder and CEO of Crash Lawyers told the Western Standard Wednesday this will create loopholes in the system..Here’s the percentage of your auto insurance premium that goes to the Alberta government."Cops don't come out to the scene every time there's an accident," said Ricky Brigatta, Founder and CEO of Crash Lawyers."So, if cops don't come out to the scene of the accident, and they can't issue tickets, then that precludes anyone from being able to sue and seek compensation just because cops were too busy. That seems like a very weird condition to put on being able to seek pain and suffering. The process is: if a cop comes out, gives a ticket, and then that ticket — the person actually has to get charged by that ticket."The regulations are still under assessment to address such instances and are not final at this point, according to the media briefing.Premium increases warrant reform, report saysThe government says premium increases over time warrant the reform.It says auto insurance costs in Alberta are rising, mainly due to increasing bodily injury claim expenses, inflation, repair costs, and theft. According to the report, premiums have grown by 165% since 1992, with basic coverage costs rising 50% above inflation, while optional coverage remains stable. Currently, premiums don’t fully cover claim costs, causing financial strain on insurers and reducing consumer choice..Alberta brokers, IBC urging government to remove rate cap, citing high premiums leaving drivers uninsured.To address these issues and create a more stable, affordable system, the Alberta government is reviewing alternative insurance models with expert input, reads the report.The new Care-First model will come into effect upon proclamation of the new Automobile Insurance Act, which is anticipated for January 1, 2027. The government will be assessing the health claims and making decisions accordingly when it's in effect.Currently, it’s still undergoing the necessary regulations.Driving without insurance is illegal in Alberta. You could face big fines, jail, and lose your licence..‘Price controls create shortages’: Albertans feeling the pinch as some insurers pull out, rates increase

Here’s what the government of Alberta wants you to know about the Care-First Auto Insurance model

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