Alberta drivers could see hundreds of dollars in annual savings under the province’s planned overhaul of auto insurance, according to a new independent report projecting lower costs and more stable premiums under a care-first model.The report, released by the Automobile Insurance Rate Board and prepared by Oliver Wyman Limited, estimates savings of up to $366 per vehicle each year for drivers with basic coverage once the system is fully implemented.The findings come as rising legal costs, inflation, vehicle theft, weather-related damage and tariffs continue to push premiums higher under the current court-based system. The report concludes that shifting away from litigation toward a care-first approach would reduce overall claims costs and improve long-term stability for consumers.Under the new model, Albertans injured in collisions would receive immediate access to medical care, rehabilitation and income support without going through lengthy legal proceedings. Benefits would be based on recovery needs rather than court outcomes, a change the province says will provide faster and more predictable support.Premiums would also be more closely tied to individual risk, meaning safer drivers would pay less while higher-risk drivers would face increased costs..Finance Minister Nate Horner said the changes are aimed at strengthening the system while lowering costs. He pointed to the report as evidence the care-first model can deliver both improved benefits and meaningful savings over time.The report also highlights Alberta’s Good Driver Rate Cap, which has limited premium increases for lower-risk drivers. Without the cap, full coverage costs could have exceeded $3,100 by early 2027, while the care-first system is expected to bring average premiums closer to $2,000 per policy once introduced.Michelle Chimko said the Alberta Motor Association supports the shift, arguing it will improve affordability and lead to better recovery outcomes for injured drivers.The province plans to launch the new care-first auto insurance system on Jan. 1, 2027, positioning it as a made-in-Alberta approach to rein in costs and reduce reliance on the courts.
