Alberta drivers will begin receiving auto insurance renewal notices priced under the province’s new Care-First system on Nov. 1, with approved insurer rate filings projecting average premium reductions of 13.7%, or approximately $297 per private passenger vehicle.
The notices will apply to policies taking effect on or after Jan. 1, 2027, when Care-First replaces Alberta’s current court-based auto insurance system.
According to the Automobile Insurance Rate Board (AIRB), young drivers are expected to see some of the largest reductions. Its young male rating profile shows a projected premium decrease of $3,094, or 30%. The young female profile shows a reduction of 27.6%, or nearly $2,500, according to the Insurance Bureau of Canada (IBC).
Middle-aged drivers are projected to save approximately $525, or 14%, while seniors could see reductions of about 20%.
However, the projected savings are averages, not guarantees for individual policyholders. Actual premiums will depend on factors including driving history, location, vehicle, insurer and coverage choices. Motorcycle premiums are expected to increase because of the expanded injury benefits available under Care-First.
The new system, which takes effect Jan. 1, will shift the focus of auto injury claims from court-based compensation toward benefits provided through an injured person’s own insurer. Eligible medical and rehabilitation expenses will no longer be subject to the current $50,000 limit over two years, while income replacement and permanent impairment benefits will also be expanded.
The changes remain controversial. The Alberta Civil Trial Lawyers Association has questioned the methodology used to calculate projected savings, while critics of the new system have raised concerns about restrictions on injured people’s ability to sue for compensation.
The November renewal cycle will give drivers their first indication of how the new pricing affects their individual policies. Insurers and brokers will also need to explain the premium changes and revised benefits before Care-First takes effect.
