In November 2024, the Alberta government announced a shift to a “Care First” No-Fault auto insurance system, privately administered and scheduled to take effect in January 2027.
This means that after an accident, individuals will claim from their own insurer regardless of fault, losing the right to sue the at-fault driver for damages.
Despite the Superintendent of Insurance revealing overcharging by insurers between 2022-2024 and levying fines, these same companies will gain more power under the new system with limited court access for consumers.
This untested system, unique in Canada for private administration, raises concerns about insurers’ preparedness, rewarding bad drivers, and potential cost transfer to families and public systems. In the interim, the government has authorized rate increases of up to 7.5% annually for good drivers until the new system’s implementation.
WHAT CAN I DO?
The most effective way to influence government policy and decision-making on this issue is to contact your MLA and let them know that you are opposed to “Care-First” no-fault auto insurance, and that maintaining consumer choice and holding bad drivers accountable is important to you.
Sharing news with your friends, family and colleagues about the risks and problems with “Care-First” No-Fault insurance also helps to educate other Albertan’s about this issue.
Let’s work together to maintain accountability, ensure consumer choice, and promote real affordability for Albertan drivers. This is the way to keep our roads safe and auto insurance fair.