Nearly 90% of Alberta drivers are expected to pay less for auto insurance under the province's new Care-First system, with average annual savings of $300 and some younger motorists seeing reductions of approximately $3,000.The Insurance Bureau of Canada (IBC) says the savings are already being reflected in insurance renewals issued beginning November 1, ahead of the new system officially taking effect January 1, 2027.According to an analysis by the Automobile Insurance Rate Board (AIRB), approximately 2.75 million of Alberta's 3.1 million insured vehicles will see lower premiums under the reforms.More than half of insured vehicles are expected to see premium reductions of at least 15%.“Starting today and moving forward, the vast majority of drivers will begin to see something in their auto insurance renewals that they haven’t seen for a very long time – savings,” said Aaron Sutherland, IBC's vice-president for Pacific and Western Canada.“By expanding benefits for those injured in collisions and reducing the need for lawsuits, the Alberta government’s Care-First reforms have delivered on the promise to improve the affordability of auto insurance for drivers.”The biggest savings are expected among young drivers and families with younger motorists on their policies.According to the insurance industry, many in that category could see annual premium reductions of approximately $3,000.Middle-aged drivers are expected to save an average of $525, while seniors could see their insurance bills fall by approximately 20%.However, not every Alberta motorist will benefit from the changes..Approximately 310,000 drivers are expected to face higher premiums under Care-First, with most of those increases averaging around 5%.The province is eliminating premium caps for motorists with histories of at-fault collisions, traffic violations and other high-risk driving behaviour.The IBC says the changes mean drivers with good records will no longer subsidize the insurance costs of higher-risk motorists to the same extent.Premiums will also more closely reflect the anticipated costs of medical treatment and recovery following collisions.For example, motorcycle riders could face higher insurance costs because injuries sustained in motorcycle crashes may require more expensive medical care.Individual premiums will continue to depend on driving records, where motorists live, the type of vehicle they operate and their insurance coverage.The Care-First model is designed to reduce reliance on lawsuits following collisions while expanding benefits and medical support for injured drivers.The insurance industry says reducing legal costs will help lower premiums for most Albertans while directing more money toward treatment and recovery.To explain the changes, the IBC has launched a provincewide advertising campaign called Yes, Really!The campaign will run across television, radio, digital platforms and social media over the next two months.According to the bureau, the advertising campaign is designed to reach Albertans at least 18 times each.The campaign will promote the expected savings and explain how the new insurance model will affect drivers renewing their policies.“Care-First is about making auto insurance work better for Albertans,” Sutherland said.“That means lower premiums for the vast majority of drivers, better support after a collision and straightforward information that helps consumers understand their insurance renewal and make informed choices.”.The projected premium changes are based on insurer rate filings approved and analyzed by the Automobile Insurance Rate Board in September 2026.The IBC cautions that the savings are averages and are not guaranteed for every driver.Motorists who receive higher renewal quotes are encouraged to contact their insurance representatives to review coverage options and compare rates.Albertans can find additional information about the reforms, anticipated premium changes and expanded injury benefits at betterautoalberta.ca.
