With Alberta's United Conservative Party (UCP) members voting to repeal the Care-First system, however, nobody seems to be talking about any alternatives — that could help drive insurance costs down without resorting to the regulated system.At the UCP Annual General Meeting (AGM) in late November, UCP members voted to repeal the Care-First system, the regulated automobile insurance system set to be introduced in January 2027.Under the system, legal action will only be permitted under certain circumstances, depending on the at-fault driver having either a criminal or traffic conviction.Under the tort-based system Alberta currently has now, at-fault victims have a right to sue, but under Care-First, they will no longer be able to go through the judicial system; instead, they will have to go through a government-approved tribunal.However, with insurance costs still going up — what could be done instead of taking away Albertans' rights?Craig Gillespie, a lawyer and partner at Cuming & Gillespie, a personal injury law firm, told the Western Standard about a few solutions... .First Gillespie acknowledges the elephant in the room, "I mean, as a lawyer who practices in the area, I understand that we're painted as being the villains and all this.""And the problem is because the lawyers are greedy and the legal fees are too high.""We've talked to people that will listen about solutions because I agree."However, as Gillespie highlights, there are multiple factors driving up insurance costs — and it's not just because of legal costs.."There's a number of things that affect the premiums that are charged," stated Gillespie.Here's a breakdown of some of the factors, and accompanying solutions...1. Gillespie says property damage increases insurance prices, as vehicles have become much more expensive.Vehicles "are much more technically advanced.""So something that replacing a bumper with all the backup cameras and everything is very expensive. Property damage leads to a big part of the claim costs," Gillespie explained.."Putting limits on property damage claims or having to pay maybe a higher premium if you want certain levels of coverage for property damage.""That's something that would help address the problem," Gillespie suggests.2. Another option, Gillespie says, would be to eliminate minor claims."I mean, the stories of somebody having a very minor accident and having whiplash — those claims could be eliminated out of the system in a number of different ways," stated Gillespie."One would be a deductible — so simply applying an arbitrary number of its 10,000 or whatever the number is, that money comes right off the top and goes back into the system — that will help reduce the rates.".3. And lastly, putting some limits on legal fees for at fault cases.As Gillespie explains it, "if anybody that was at the UCP convention had come across the handouts that the insurance companies were passing out with the greedy lawyers taking 40% or 50% [for their clients' settlements], that's not common.""But I've heard stories, and I've seen that — so putting some limits on legal fees is a discussion we've had of what would be a reasonable percentage to charge and helping control some of that."Gillespie says he's working with the government to help find a solution that doesn't take away the rights of Albertans. To learn more, help yourself, and click here — to watch the entire interview.
