Canada's insurance industry is warning that efforts by personal injury lawyers to overturn Alberta's new Care-First auto insurance system could jeopardize the premium savings the provincial government has promised drivers beginning next year.The Insurance Bureau of Canada (IBC) has launched a provincewide public awareness campaign defending the reforms, arguing the new system is expected to save the average Alberta driver about $260 annually while expanding medical and recovery benefits for people injured in collisions."Alberta's personal injury lawyers continue to oppose the government's Care-First reforms and instead want to preserve lawsuits and legal fees in the auto insurance system," said Aaron Sutherland, IBC's vice-president for the Pacific and Western regions."This would preserve the status quo for 700 personal injury lawyers at the expense of the province's 3.2 million drivers."The campaign directs Albertans to a new website, lowerlegalfees.ca, which argues that legal challenges to the reforms could prevent consumers from receiving lower premiums and enhanced benefits when the new insurance model takes effect on Jan. 1, 2027.The Care-First system replaces much of the traditional litigation process with a model focused on providing treatment and rehabilitation benefits to injured motorists while reducing the role of lawsuits in resolving claims.According to IBC, as much as 40% of the value of litigated claims currently goes toward legal fees rather than compensation for injured drivers.The organization also says legal costs associated with auto insurance claims have risen 203% in recent years, contributing to higher premiums."Legal costs have escalated 203% in recent years and must be addressed to improve affordability," Sutherland said. "That's why the government was right to introduce the made-in-Alberta Care-First insurance system. It reduces out-of-control legal costs, generates significant savings for drivers and expands the care and benefits available to people injured in collisions.".The Alberta government has said the reforms will produce average annual savings of approximately $260 per driver while creating what it describes as Canada's most comprehensive recovery benefits for collision victims.IBC said insurers are preparing to implement the new system but are awaiting final legislation and regulations before the Jan. 1, 2027 launch.The insurance industry also pointed to new polling suggesting Albertans support the reforms.According to the survey commissioned by IBC, 57% of respondents said they would accept reduced access to lawsuits in exchange for lower premiums and improved accident benefits under the Care-First model.By comparison, 13% said they preferred maintaining the current legal system."Albertans believe the government has struck the right balance in designing its new auto insurance system," Sutherland said. "The new system will deliver lasting premium stability for drivers by removing escalating legal costs and enhancing care for those injured in collisions."The Care-First reforms have faced opposition from Alberta's personal injury bar, which argues limiting lawsuits could reduce access to justice for motorists seriously injured in crashes. The province has said the new model is intended to prioritize treatment while helping stabilize insurance costs for drivers.
