
Edmonton, Alberta — The Alberta government has confirmed plans for a new privately managed, care-focused auto insurance system.
The new system will ensure that Alberta drivers involved in serious accidents receive compensation for their injuries. This approach is inspired by Saskatchewan's model, where at-fault drivers can be sued for pain and suffering if convicted of a traffic-related crime. The decision was made following a survey of more than 16,000 drivers in Alberta.
"The increasing cost of repairs, parts shortages and rising auto thefts are all driving up insurance rates across Canada. But the single biggest reason for the increase in rates in Alberta is the increasing costs of personal injury claims," reads the government's information webpage on the topic.
Legislation for the new insurance system is expected to be introduced in the spring of 2025, with full implementation targeted for January 2027.
To kick off these changes, the province will increase the good driver rate cap by 7.5 percent.
“Albertans have made it clear that they need an auto insurance system that provides quicker, more affordable care,” said Premier Danielle Smith. “Once implemented, our new care-centered insurance system will focus on recovery, offer more effective support, and lead to lower rates.”
Ultimately, Alberta's government says the planned "Care-First" system would focus on providing improved medical, rehabilitation, and income support benefits for all Albertans injured in a collision, while continuing to hold at-fault drivers accountable through higher premiums. Albertans injured in a collision would be able to access these enhanced benefits without the need to sue, they added.
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