Alberta has released regulations for its Care-First auto insurance model launching January 1, 2027, which will provide Canada's highest health-care and accessibility benefits for collision injuries while reducing average driver premiums by $260 annually and decreasing litigation costs.
- Care-First launches January 1, 2027 in Alberta with the highest health-care and accessibility benefits in Canada
- Average annual insurance savings of $260 for Alberta drivers beginning in 2027
- Wage replacement benefits up to 90% of net income and lump-sum payments reaching nearly $298,520 for serious injuries
- Health professionals, not insurers, will direct care under the new system
- Drivers retain the right to sue for out-of-pocket expenses and injuries involving Criminal Code violations
Alberta has released additional regulations for its Care-First auto insurance model, giving insurers the details needed to price policies ahead of the system’s Jan. 1, 2027 launch.
The regulations set out coverage levels for Albertans injured in collisions, including health-care, accessibility, wage replacement and lump-sum benefits.
Care-First will provide the highest level of health-care and accessibility benefits in Canada, according to the Insurance Bureau of Canada. Care will be directed by health professionals rather than insurers.
The system will also provide wage and income replacement benefits of up to 90% of net income, while lump-sum payments for serious injuries will reach almost $298,520.
Drivers will retain the right to sue for out-of-pocket recovery expenses not covered by their policies and for collisions involving Criminal Code or serious Traffic Safety Act violations.
The regulations follow years of pressure on Alberta’s auto insurance system from injury claims, litigation and related legal costs. New data from the General Insurance Statistical Agency shows more than 50% of current premiums go toward litigation and injury claim settlements.
IBC estimates Care-First will reduce the average Alberta driver’s annual insurance costs by $260 beginning in 2027.
“Care-First will provide the strongest auto insurance coverage in Canada, including the country’s highest recovery benefits for people injured in collisions, while saving Alberta drivers an average of $260 a year starting January 1,” said Aaron Sutherland, vice-president, Pacific and Western, IBC.
The release of the regulations allows insurers to begin preparing renewal notices and transitioning their systems for the new model.
“Care-First will put money back in Albertans’ pockets while ensuring people injured in collisions receive enhanced care, financial support and recovery benefits to better support their recovery,” Sutherland said.
