Alberta’s auto insurance landscape is on the brink of a monumental transformation. Effective January 1, 2027, the province will shift to a new Care-First auto insurance system, a move designed to fundamentally change how Albertans receive care and compensation following a vehicle collision. This reform, enacted through the updated Automobile Insurance Act, aims to prioritize immediate medical treatment and rehabilitation over legal disputes, ensuring individuals injured in accidents get the support they need faster. The need for a robust insurance framework is underscored by provincial data, which shows a concerning 10.8% increase in traffic fatalities in 2023. This guide provides a comprehensive overview of the upcoming changes, detailing the new benefits, payout structures, and claims processes that will define the future of auto insurance in Alberta.
Introduction: Navigating Alberta’s New Care-First Auto Insurance System
Understanding the Shift: What is Care-First Auto Insurance?
Care-First auto insurance represents a significant reform of the existing auto insurance system in Alberta. It is a model where an individual’s own insurance provider is responsible for providing benefits for medical care, rehabilitation, and income loss, regardless of who was at fault in a collision. This “care-first” approach is designed to remove delays often associated with determining fault, allowing for immediate access to necessary treatments. The overarching goal of this reform is to create a more efficient, affordable, and supportive auto insurance system that focuses on recovery outcomes for anyone injured on the road.
Who This Guide Is For: Empowering Injured Albertans and All Policyholders
This guide is for all Albertans who own or operate a vehicle. Whether you are a daily commuter, a commercial driver, or an occasional user, these changes will impact your coverage, your premiums, and your rights if you are involved in a collision. It is particularly crucial for individuals who may become an injured claimant in the future, as it outlines the enhanced benefits available and the new process for accessing them. By understanding the Care-First model, all policyholders can make more informed decisions about their auto insurance and be better prepared for the 2027 transition.
Core Principles: The Care-First Model Explained
Prioritizing Recovery: Immediate Access to Care Over Blame
The foundational principle of the Care-First model is the separation of care from fault. Under the new system, if you are injured in a collision, your access to medical and recovery benefits is immediate and not contingent on a lengthy investigation to determine who caused the accident. Your own insurer is mandated to facilitate and cover the costs of necessary treatment right away. This philosophical shift ensures that the primary focus is on an individual’s health and well-being, providing a clear and direct path to recovery benefits, medical care, and essential rehabilitation services without the adversarial delays of the current system.
The Goals of the Reform: Reducing Litigation and Ensuring Prompt Payouts
The Care-First model is designed to significantly reduce collision-related lawsuits by providing a comprehensive suite of benefits directly through insurers. By largely removing the need to sue for damages related to injuries, the system aims to lower legal costs, streamline the claims process, and ensure that payouts for care and income loss are delivered promptly to those who need them.
Comprehensive Guide to Care-First Benefits and Payouts
The new system introduces a robust framework of defined benefits designed to provide comprehensive support.
Medical and Rehabilitation Benefits: Your Path to Recovery
Under the Care-First model, Albertans will have access to lifetime medical and rehabilitation benefits for all medically necessary treatments related to injuries from a collision. This coverage is extensive and not capped, ensuring long-term care needs are met. A significant enhancement is the provision for personal care assistance, offering monthly payouts to help with daily living activities. For catastrophic injuries, this benefit can be up to $6,781 per month, while non-catastrophic injuries may qualify for up to $5,671 per month.
Income Replacement Benefits: Financial Support During Recovery
To protect against financial hardship, the system provides generous income replacement benefits. Those unable to work due to serious injuries can receive up to 90% of their net income. A key feature is the expanded eligibility, which includes not only full-time and part-time employees but also the self-employed, job seekers, students, and minors. The benefit is calculated based on an insurable income cap of $125,000 (as of 2025) and is potentially payable until age 65, providing long-term financial stability. A retirement income benefit is also included, calculated at 70% of pre-collision net earnings.
Permanent Impairment Benefits: Compensation for Lasting Impacts
For injuries that result in a permanent and life-altering impairment, the Care-First model includes a one-time, lump-sum payment. This benefit is determined through objective medical evaluations and is adjusted annually for inflation. However, it is critical for Albertans to understand that this benefit can be significantly reduced or voided entirely if the claimant is convicted of an impaired driving offence under the Criminal Code related to the collision. This clause reinforces the system’s stance on accountability for high-risk driving behaviour, an ongoing concern highlighted by statistics showing 2,504 impaired driving incidents reported in Calgary in 2023.
Catastrophic Injury Benefits: Enhanced Coverage for Life-Altering Injuries
The system provides specific, enhanced coverage for catastrophic injuries—such as quadriplegia, paraplegia, severe brain injury, or amputation. In addition to the lifetime medical and personal care assistance benefits, individuals with the most severe injuries may be eligible for a lump-sum payment of up to $298,500. This recognizes the profound and permanent impact such injuries have on an individual’s life and finances.
Other Key Benefits
The Care-First model will also provide death benefits to support surviving family members. These include coverage for funeral expenses up to $10,308. Furthermore, payments are provided to surviving spouses (ranging from $75,623 to $600,000) and dependents ($35,919 to $66,170, depending on age), offering critical financial support during a difficult time.
The Care-First Claims Process: Your Step-by-Step Guide
Immediately After an Accident: What to Do
Following any motor vehicle accident or vehicle collision, your first priority is safety. Check for injuries and call 911 if necessary. If it is safe to do so, move vehicles out of traffic. Exchange information with the other driver(s), including name, address, phone number, driver’s license number, license plate, and insurance company details. Take photos of the scene, vehicle damage, and any visible injuries. Report the collision to the police as required by law.
Initiating Your Claim: Notifying Your Insurer
Contact your insurance broker, agent, or company directly as soon as possible after the collision. Under the Care-First system, your own insurer is your primary point of contact for all injury-related benefits. Be prepared to provide details of the accident, the police report number if available, and information about any injuries sustained. Prompt notification is key to starting the claims process and gaining access to benefits quickly.
Navigating the Assessment and Treatment Phases
Once your claim is initiated, your insurer will guide you through the next steps. They will arrange for necessary medical assessments to understand the extent of your injuries and create a treatment plan. This plan will outline the medical treatments, therapies, and rehabilitation services you are entitled to. The insurer is responsible for coordinating and paying for these approved services directly, allowing you to focus on your recovery without upfront costs. Access to these recovery benefits is a core feature of the Care-First model.
Essential Documentation: What You Need for a Successful Claim
To ensure a smooth claims process, a claimant should be prepared to provide several key documents. These typically include the police report, medical reports from your doctor or other healthcare providers, receipts for any out-of-pocket medical expenses, and documentation to support an income loss claim, such as pay stubs or tax returns. Keeping organized records from the outset will help your insurer process your benefits efficiently.
How to Maximize Your Benefits: Actionable Advice for Injured Albertans
To maximize your benefits, be proactive. Communicate openly and regularly with your insurance adjuster. Fully understand the coverage available under your policy and the Care-First system. Attend all medical appointments and follow your prescribed treatment plan. Keep meticulous records of all communications, expenses, and medical visits. Gaining full access to the benefits you are entitled to requires active participation in your own recovery and claims process.
Dispute Resolution: Understanding the Alberta Automobile Care-First Tribunal
The reform establishes the Alberta Automobile Care-First Tribunal, a new body designed to handle disputes between claimants and insurers. If you disagree with a decision regarding your benefits, treatment plan, or compensation, this tribunal will serve as the primary, streamlined venue for resolution. It aims to provide a faster, more accessible, and less costly alternative to the traditional court system for the vast majority of disagreements.
Limited Court Access: When You Can Still Go to Court
While the tribunal will handle most disputes, the ability to sue in court is not entirely eliminated. Court access will be reserved for specific, narrow circumstances. For instance, a person injured by an impaired driver who is convicted under the Criminal Code will still have the right to sue that driver for additional damages. The right to sue may also be maintained in cases where damages exceed the comprehensive benefits provided by the system, though these situations are expected to be rare given the extensive coverage available.
Impact on Premiums and the Auto Insurance Market
The Role of the Alberta Automobile Insurance Rate Board (AIRB)
The Alberta Automobile Insurance Rate Board (AIRB) will continue to play a crucial role in regulating insurance rates to ensure they are fair and not excessive. The AIRB will approve rate filings from insurers and establish tariffs for treatment providers. A key goal of the Care-First reform is to stabilize premiums for good drivers over the long term. The average auto insurance premium in Alberta was $1,669 in 2023, and this reform aims to moderate such increases.
Shopping for Insurance Under the New Model: What to Consider
While the core injury benefits will be standardized across all policies, Albertans will still need to make important choices when buying insurance. It will remain crucial to secure adequate third-party liability coverage to protect you if you are at fault in a collision that causes significant property damage or falls into one of the categories where lawsuits are still permitted. Optional coverages, such as collision and comprehensive coverage for vehicle damage or theft, will also remain vital components of a complete insurance policy.
Preparing for 2027: What Every Albertan Should Do Now
Reviewing Your Current Policy: Talk to Your Broker or Agent
As 2027 approaches, it is wise to connect with your insurance broker or agent. Discuss your current coverage and how it will transition under the new system. They can help you understand the changes, answer your questions, and ensure your insurance policy continues to meet your specific needs both before and after the reform takes effect.
Understanding Your Rights and Responsibilities Under the New System
Familiarize yourself with the key principles of the new Automobile Insurance Act. Understanding your right to immediate care, the benefits you are entitled to, and your responsibilities in the claims process will empower you to navigate the system effectively. Similarly, adhering to the Traffic Safety Act and practicing safe driving remains your foremost responsibility.
Staying Informed: Monitoring Regulations and Updates
The government will be finalizing specific regulations and operational details in the lead-up to the 2027 launch. Stay informed by monitoring official announcements from the Government of Alberta and the AIRB. As new information becomes available, understanding the fine points will help you prepare for the transition.
Resources for Albertans: Where to Find More Information
For the most accurate and up-to-date information, Albertans should consult official sources. Key resources include the Government of Alberta’s official website, the Alberta Automobile Insurance Rate Board (AIRB), and publications from the Insurance Bureau of Canada (IBC). These organizations will provide detailed guidance as the implementation date nears.
Conclusion: Your Roadmap to Care and Financial Security
The introduction of Alberta’s Care-First auto insurance system in 2027 marks a pivotal change, shifting the focus from blame to recovery. This reform is designed to provide Albertans with a more supportive, efficient, and predictable framework following a collision. By offering immediate access to lifetime medical care, robust income replacement, and defined compensation for serious injuries, the new model aims to deliver both care and financial security when it is needed most. For all Albertans, the path forward involves understanding these new benefits, preparing for the updated claims process, and staying informed. This guide serves as your initial roadmap to navigating a system built on a clear and compelling principle: putting care first.
Alberta’s Care-First system is still being developed and will be launched on January 1, 2027. Before it launches, the current fault-based system is still in operation. If you sustain injuries in a motor vehicle accident in Alberta, feel free to reach out to us for a free consultation.
Watchmaker Law is an Alberta based personal injury law firm that can assist you with your Care-First benefits claim when it is implemented in 2027. The firm is led by David Sowemimo, one of Canada’s Top 25 Most Influential Lawyers. He has handled cases in both no-fault and fault-based jurisdictions. Our legal team can be reached at 825 203-9801 or you can chat with us in the chat-box below.
