Alberta drivers could save an average of nearly $300 a year on auto insurance when the province’s new Care-First system takes effect in 2027, according to new figures from the province’s insurance rate regulator.Two reports released by the Automobile Insurance Rate Board (AIRB) project the average driver will pay 13.7% less, amounting to savings of about $297 per vehicle.The reductions are higher than previously estimated and come after insurers completed their rate filings for the new system, which takes effect Jan. 1, 2027.Young drivers are projected to receive some of the largest reductions. The AIRB found its young male driver profile would see premiums fall by $3,094, or 30%.Middle-aged private passenger drivers are projected to save approximately $525, or about 14%, with similar reductions for male and female driver profiles.Seniors are also expected to see significant reductions, with the AIRB projecting savings of roughly 20% as drivers move from the middle-aged to senior category.“This updated analysis confirms that Care-First will deliver meaningful savings for Alberta drivers at a time when they need it most,” said Insurance Bureau of Canada Vice-President for Pacific and Western Aaron Sutherland.“With household costs continuing to rise due to economic uncertainty caused by inflation and ongoing trade concerns, the government’s new Care-First auto insurance system is delivering $300 in savings on average to Alberta drivers, while vastly improving the care and benefits provided to those injured in collisions.”The latest estimate represents an improvement from projections released earlier this year.An analysis conducted by consulting firm Oliver Wyman and released by the Alberta government in March projected Care-First would save drivers an average of $259. Drivers purchasing only mandatory coverage were expected to save as much as $366 on average..Care-First changes how people injured in collisions receive compensation by placing greater emphasis on medical treatment and recovery benefits while restricting the ability to pursue some claims through the courts.Sutherland said reducing legal costs will allow insurers to cut premiums while expanding benefits for people injured in collisions.“This new analysis shows that the government has succeeded in its goal of putting improved affordability for drivers and expanded care and benefits for those injured at the centre of its work in designing Care-First,” he said.The projections come after an AIRB report released in August showed Alberta auto insurance premiums increased 8.7% last year while insurers continued to lose money selling auto coverage.The regulator’s 2026 Market and Trends Report also found affordability and availability of insurance coverage continued to deteriorate.The Insurance Bureau of Canada said the new system is expected to provide greater stability to the province’s auto insurance market.“As auto insurance renewals come into effect later this year, Alberta’s 3.2 million drivers will begin to see reduced prices of nearly 15% on their auto insurance as Care-First starts to deliver real savings and improved affordability,” Sutherland said.“Alberta’s auto insurers are keen to deliver this new system and the lasting premium stability and improved benefits it provides.”
