A Care-First Auto Insurance System for Alberta
What is a "care-first" system of auto insurance?
In a care-first system, Albertans injured in a vehicle collision will receive higher benefits to support their recovery.
Albertans will still be able to sue an at-fault driver in certain cases (like if the other driver is convicted of a Criminal Code driving offense), and at-fault drivers will be held accountable through higher premiums.
Albertans can expect to see a reduction in their premiums, compared to what they pay today.
Frequently Asked Questions
- How will my benefits increase under care-first?
- When will Albertans see savings on the auto insurance?
- Where can I get the best information and facts on the new care-first system?
- Why will it take until 2027 to implement?
- How will the care-first system support cyclists and pedestrians?
- How can the cost of insurance decrease when benefits are increasing?
- When can I sue the at-fault driver?
- Why is Alberta going with private delivery instead of public delivery?
- What are my options to manage my auto insurance premiums until 2027?
How will my benefits increase under care-first?
Albertans injured in a collision will have access to substantially increased benefits. For example:
- Today, medical and rehabilitation benefits are limited to $50,000 for two years. Under the care-first system, these benefits will be unlimited over your lifetime.
- Today, the income replacement benefit is currently the lessor of $600 per week and 90% average gross earnings, for up to two years. Under the care-first system, the maximum insurable gross yearly income of $120,000 is payable until you reach the age of 65.
All Albertans injured by an auto accident (at-fault, not at-fault, pedestrian, cyclists, etc.) will receive benefits under the new system.
| Benefit Category | Benefit | Amount |
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Medical and Rehabilitation Current: Only medically necessary expenses up to $50K, for two years; Chiro: $1K; Massage / Acupuncture: $350; Psych / Physio / OT: $750 |
Medical and rehabilitation costs | Unlimited for all eligible expenses, for life. |
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Personal care assistance
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Income Benefit Current: Lessor of $600 per week and 80% average gross weekly earnings; for only 2 years |
Maximum insurable gross yearly earned income | $120,000 |
| Industrial average wage |
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| Help hired for family business | $934 (maximum/week) | |
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Lump sum indemnity for each school year not completed
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| Caregiver weekly indemnity |
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Permanent Impairment Benefit Current: n/a |
Catastrophic Injuries | $295,272 |
| Non-catastrophic Injuries | $934 (minimum) to $186,998 (maximum) | |
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Expenses* Current: Not expressly required |
Meal allowance:
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| Critical Care Attendance | $5,554 (maximum) | |
| Clothing Allowance | $1,291 (maximum) | |
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Death Benefits Current: Funeral: $6,150; Death: $10K (+ 20% for survivor) + ($15K if spouse lives in the home + $4K for each remaining survivor); Grief counselling: $500 per family |
Funeral (receipts required) | $10,196 (maximum) |
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Payments to family
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| Grief Counselling | $4,263 per person* (maximum) |
When will Albertans see savings on the auto insurance?
A system change of this size will take time to implement. The new care-first system will be effective January 1, 2027.
Where can I get the best information and facts on the new care-first system?
Our website will provide the most up-to-date information on the implementation of the care-first system and subsequent impact to Alberta drivers. While there is a lot of information available online (social media, blogs, etc.) not all of it is 100% accurate. Check back here often for updates and feel free to email us with your questions.
Why will it take until 2027 to implement?
Moving to a privately-delivered care-first auto insurance system is a large undertaking. This is the first of its kind in Canada.
Insurers have sophisticated computerized pricing systems and require significant time and resources to make even the smallest changes.
The first step to implement the reforms is the introduction of legislation, which is expected in the spring of 2025. Should the legislation pass, the government will introduce regulations to implement and oversee the new care-first system. Once these regulatory steps are complete, insurers will begin to modify their systems and train their staff.
Brokers, agents and adjusters will also need to complete system updates and training to ensure they are ready to support Alberta drivers through this change.
How will the care-first system support cyclists and pedestrians?
Under the Care-First system all injured parties will have access to the medical and rehabilitation they require – this includes cyclists and pedestrians involved in an accident with a motor vehicle.
How can the cost of insurance decrease when benefits are increasing?
One of the major causes of insurance costs relates to litigation expenses. When people sue, it adds costs and leads to more expensive and unstable insurance rates. By removing litigation from the claims process, millions of dollars will be saved, along with valuable time.
Currently, in Alberta, if a not-at-fault driver needs more medical or income support, they must sue the insurer of the at-fault driver. The litigation process can take years to resolve, and there is no guarantee of success. Even if the injured person receives an award, the net amount may not be enough, as 30 per cent or more is paid as a contingency fee to the lawyer. Further, due to maximum liability limits under the policy, which is usually around $1 million, the award amount may not be sufficient for people who are catastrophically injured.
When can I sue the at-fault driver?
Court access will still be available in limited circumstances:
- Persons injured in collisions will have the ability to sue at-fault drivers for pain and suffering damages where at-fault drivers are convicted of Criminal Code offences or select major Traffic Safety Act offences.
- Additionally, injured Albertans will still be able to sue for out-of-pocket expenses that exceed the benefit limits in the care-first model. However, as the benefits provided under the policy will be generous, we anticipate the volume of these claims will be very low.
Why is Alberta going with a private delivery model, when care-first models in other provinces are all publicly delivered?
The government heard from Albertans through a public survey, and 83% of respondents said they value the ability to select an insurer of their choice and a one-size-approach does not work for all. A privately-delivered, care-first model of insurance will promote a competitive auto insurance market in Alberta.
Case Study - Common Injury
Individual gets in a collision and sustains a whiplash injury, specifically, Whiplash Associated Disorder II (WAD II).
| Court System (Current) | Care-First System | |
| Treatment | Up to 21 pre-approved physio/chiro visits | Treatment provided for as long as there is a "measurable benefit" |
| Compensation | Maximum of $6,061 for pain and suffering damages plus out-of-pocket expenses | No pain and suffering damages, but may be entitled to out-of-pocket expenses |
| Timelines | Typically claim is resolved (treatment and compensation) within months |
Typically, the claim will be resolved (treatment and compensation) within months. |
Treatment: The key differences would be the individual would have access to a larger variety of health care practitioners (e.g. dentists, acupuncture, registered acupuncture, etc.); and if they required more treatment visits than expected, they would have access to them.
Compensation: Under a care-first system, pain and suffering damages are removed. Out-of-pocket expenses could still be claimed. Note that it is expected that most people would not miss much or any work with these common injuries. Therefore, in our example, there would be little income support needed.
Time lines: It is expected that claims would be resolved in a care-first system within similar time lines, if not faster, due to the removal of monetary damages.
Case Study - Serious Injury
Individual gets in a collision and sustains a serious injury, specifically, they fracture their pelvis and break their leg.
| Court System (Current) | Care-First System | |
| Treatment | Up to $50,000 for two years. If more treatment is required, must sue at-fault driver’s insurance company | No maximum or time limit for treatment that provides a measurable benefit |
| Compensation | Pain and suffering damages, as determined by the courts, loss of earning capacity, plus out-of-pocket expenses | May be entitled to a permanent impairment lump sum (between $1,000 and $187,000), income replacement benefit, plus out-of-pocket expenses |
| Time lines | Claims can take years to resolve | Claims would be resolved when maximum medical recovery is achieved |
Treatment: Individual would have access to significantly broader treatment and medical rehabilitation benefits under a care-first model, with no time limit. Ancillary supports, such as return-to-work rehabilitation, caregiver, and personal care supports would also be available to them under a care-first system.
Compensation: The individual may be entitled to a permanent impairment lump sum, which they would not have to sue for. The amount of the benefit would be based upon the severity of his injury. If the individual pays for out-of-pocket expenses greater than the policy limits, they still have the ability to sue an at-fault-driver for those expenses.
Time lines: It is expected that claims would be resolved quicker than under the court system. Benefits would be available to the individual, without them having to sue. Claims are finalized once individual reaches maximum medical recovery.
Case Study - Catastrophic Injury
Individual gets in a collision and sustains a catastrophic injury, specifically they sustain a spinal cord injury, rendering them quadriplegic.
| Court System (Current) | Care-First System | |
| Treatment | Up to $50,000 for two years. If more treatment is required, must sue at-fault driver’s insurance company | No maximum or time limit for treatment that provides a measurable benefit. Ancillary supports for rest of life. |
| Compensation | Pain and suffering damages, as determined by the courts, loss of earning capacity, plus out-of-pocket expenses | May be entitled to a permanent impairment lump sum (maximum $295,000), income replacement benefit, plus out-of-pocket expenses |
| Time lines | Claims can take years to resolve | Individual would receive treatment and care for the rest of their life |
Treatment: Individual would have access to significantly broader treatment and medical rehabilitation benefits under a care-first model, with no time limit. Ancillary supports, such as home/vehicle modification, caregiver, and personal care supports would also be available to them for the rest of their life under a care-first system.
Compensation: The individual may be entitled to a permanent impairment lump sum, which they would have had to sue for in the current model. The amount of the benefit would be based upon the severity of their injury. If the individual pays for out-of-pocket expenses which are greater than the policy limits, they still has the ability to sue an at-fault-driver for those expenses.
Time lines: Benefits would be available to the individual, without him having to sue. They would be available for the rest of their life.
