Alberta’s Care-First Auto Insurance System, Explained: What It Means for Your Claim

What’s Changing in Alberta’s Auto Insurance System

Starting January 1, 2027, Alberta is moving from its current tort-based auto insurance system to a new model called Alberta care first auto insurance.

This Alberta auto insurance reform changes how injured people receive compensation and when they can still sue. This portal isn’t a law firm.

It connects people injured in Alberta car accidents with independent lawyers licensed by the Law Society of Alberta, free to use, no obligation.

Why the System Is Changing

The Alberta government and the insurance industry have pointed to reducing legal costs and speeding up access to treatment as the goals behind this alberta auto insurance reform. That’s the stated rationale from supporters - it’s not the only perspective on the reform, and a fuller balance of views appears further down this page.

This framing, faster care and lower costs, is the version of events presented by the reform’s architects.

Whether that outcome actually materializes, and at what cost to injured people’s legal options, is exactly the subject of the ongoing debate covered later on this page.

Much of that debate began with the Alberta auto insurance changes 2025 brought in, when Bill 47 passed and set the Care-First model in motion.

How Alberta’s Insurance System Works Today (Until Jan 1, 2027)

Section B No-Fault Benefits Right Now

Right now, and until the end of 2026, injured Albertans access Section B no-fault benefits through their own insurer - generally up to $50,000 for medical and rehabilitation costs, plus income-replacement support, for up to 2 years.

For the full details on how a claim under today’s system actually works, including claim forms and the process with a claims adjuster, see our dedicated Car Accident Insurance Claim Process Alberta guide.

This $50,000 cap and 2-year window represent the outer limits of what today’s no-fault system provides on its own.

Anything beyond that generally requires pursuing the at-fault driver directly, which is where the tort process described next comes in.

That will change for accidents from January 1, 2027 onward, when Alberta care first auto insurance replaces these limits with expanded lifetime care benefits and largely removes the option to sue.

Suing for Compensation Beyond That

To recover compensation beyond Section B, such as pain and suffering or income loss beyond what Section B covers, injured people generally need to pursue a lawsuit against the at-fault driver under today’s system.

Our Car Accident Settlement Compensation Alberta guide covers what that process typically involves.

Under Alberta care first auto insurance, starting January 1, 2027, that route will be available only in very limited circumstances, such as when the at-fault driver is convicted of a serious or criminal driving offence.

This is precisely the piece of the system that Care-First is designed to change. Rather than requiring a lawsuit to access compensation beyond the no-fault basics, the new system aims to fold more of that support directly into the insurance benefit itself. That’s the core shift behind the Alberta auto insurance changes 2025 legislation introduced, covered in the next section.

What Changes Under Care-First (Starting January 1, 2027)

Unlimited Treatment, As Long As It Supports Recovery

The core shift under care first auto insurance is how treatment gets limited - or doesn’t. Instead of today’s caps on the number of visits, dollar amounts, and time windows, Care-First generally allows treatment to continue as long as it continues to support recovery. For the most catastrophically injured, this can mean lifetime coverage.

This is a meaningful structural change from a system built around fixed dollar and visit caps. Under the current model, treatment often stops not because a person has recovered, but because the available funding has run out. Care-First removes that specific constraint, tying continued coverage to medical necessity rather than a predetermined limit.

Who Is Covered

According to Alberta’s Automobile Insurance Rate Board (AIRB), Care-First coverage extends to every Alberta resident injured in a car accident, regardless of fault.

The at-fault driver, the driver who wasn’t at fault, pedestrians, and cyclists are all covered under this framework.

For people in the capital region, Care-First auto insurance lawyers Edmonton residents consult can explain how these benefits apply to their specific situation.

This universal coverage regardless of fault means the driver who caused a collision has access to the same treatment framework as the person they hit, at least on the medical and rehabilitation side. Fault still matters elsewhere, as covered further below, but it doesn’t gate access to Care-First’s core treatment benefits.

Optional Top-Up Coverage

Drivers can purchase optional top-up coverage above the standard Care-First benefits - for example, enhanced income-replacement support for people earning above $125,000 a year, a threshold indexed to inflation, or expanded support for everyday care needs like help around the home after an injury.

If these options weren’t offered at the time a policy was purchased, an injured person may have grounds to pursue a claim to obtain them.

Higher earners in particular may want to pay close attention to this option, since the standard income-replacement benefit under Care-First is built around a general threshold, and someone earning well above that figure could see a meaningful gap between their actual lost income and what the base policy replaces without the top-up.

Care-First vs. Today’s System, Side by Side

This side-by-side comparison, drawn from AIRB’s own published figures, illustrates why the reform draws such different reactions depending on the type of injury someone has in mind. For common injuries, the change looks like a straightforward improvement in access.

For serious and catastrophic injuries - the cases where a lawsuit today might produce a significant settlement - the tradeoff between guaranteed unlimited treatment and the possibility of a larger lawsuit award is exactly where supporters and critics diverge.

Do You Still Have the Right to Sue Under Care-First?

When You Can Still Sue

Three specific circumstances preserve the right to sue under alberta care first insurance: first, if the at-fault driver is convicted of a relevant Criminal Code offence, such as impaired or dangerous driving; second, if the at-fault driver is convicted of certain Traffic Safety Act offences, such as failing to stop for a peace officer; and third, if an injured person’s actual costs exceed what the at-fault driver’s insurance covers.

These three exceptions are narrower than many people might assume from a quick read of the reform.

A collision caused by ordinary negligence - speeding, distraction, following too closely - without a criminal conviction or a qualifying Traffic Safety Act offence generally wouldn’t preserve the right to sue on its own, even where the injury is serious.

This is precisely the piece of the reform that critics, covered below, have focused their concerns on.

Fault Still Affects Your Driving Record and Premiums

Fault continues to matter under Care-First in ways separate from the lawsuit question - it’s still recorded on your driving and insurance record and can affect future premiums.

Traffic Safety Act violations and criminal charges also continue to affect an at-fault driver’s premiums.

Care-First isn’t “no-fault” in the sense that fault carries no consequences at all for the driver who caused a collision.

In other words, Care-First changes how compensation for the injured person is generally accessed, not whether the at-fault driver faces any consequences at all. The two questions - how an injured person gets treatment and compensation, and how an at-fault driver’s own record and premiums are affected - remain distinct under the new system.

Why the Reform Is Controversial

This care first insurance Alberta reform has generated genuine, ongoing debate, and this page aims to present both sides fairly rather than take a position. Supporters of Alberta care first auto insurance point to expanded lifetime care benefits and lower premiums, while critics, including many personal injury lawyers, raise concerns about the loss of the right to sue for most injured people.

Supporters - the Alberta government, AIRB, and the insurance industry through the IBC’s public campaign - argue the reform reduces legal costs tied to litigation, speeds up access to treatment, and lowers premiums.

AIRB’s more recent estimate, based on insurers’ actual approved rate filings as of September 2026, puts average savings at roughly $297 per year, or about 13.7% - though this figure has shifted from an earlier estimate as real rates were finalized, and it may change again before January 1, 2027.

The Care-First reform has drawn significant opposition, and its political future remains uncertain. Key points of contention include:

• The Alberta Civil Trial Lawyers Association (ACTLA), which represents more than 350 lawyers, is the most prominent critic of the reform.
• ACTLA argues that Care-First removes injured Albertans’ right to sue for many types of injuries.
• ACTLA also disputes the claim that legal costs are the primary driver of high insurance premiums.
• In November 2025, roughly 75% of delegates at the governing United Conservative Party’s convention voted, in a non-binding motion, to recommend scrapping Care-First.
• As of September 2026, the government has continued moving forward with implementation despite that vote.
• Because the political status of the reform doesn’t appear fully settled, this page will require legal review closer to publication.

What Alberta Drivers Need to Do to Prepare

1. Review your current auto insurance policy to understand what it covers today
2. Learn about the Care-First benefits that will apply to your policy starting January 1, 2027
3. Keep the January 1, 2027 effective date in mind as it approaches
4. Talk to your broker or agent about coverage options, including optional top-up benefits
5. No specific action is required for the switch itself - it happens automatically for every policy

If You’re Injured in a Car Accident, Today or After the Change

Whether today’s system or Care-First applies to your situation, understanding your rights and the benefits available to you matters.

An independent lawyer can help assess whether one of the exceptions to the right to sue applies to your circumstances, and whether the benefits or compensation you’ve been offered accurately reflect your situation.

See our Car Accident Insurance Claim Process Alberta, Car Accident Settlement Compensation Alberta, and What to Do After a Car Accident Alberta guides for related information.