Changes are coming to how car insurance works in Alberta. The government is introducing no-fault insurance. You might be wondering what is a no-fault insurance system and what could this mean for your family. This blog provides information and an objective view of the new law that will govern car insurance in Alberta starting in 2027. These changes coming to car insurance system will fundamentally change how you make claims for injuries sustained after a motor vehicle accident in Alberta starting in 2027. You can consider this your “no-fault insurance explained” blog post.
The provincial government is in the process of introducing a No-fault (Care-First) automobile insurance system. The Care-first system was brought about through Bill 47, the Automobile Insurance Act. Bill 47 received Royal Assent on May 15, 2025. Then, it is expected that regulations will be enacted in the Fall of 2025 that will spell out more details of how the law will be implemented.
Currently in Alberta, after a motor vehicle accident, persons who have sustained injuries have to go through a fault system determined by the principles of negligence. The Government of Alberta is in the process of doing away with this fault system in exchange for a no-fault insurance system. The government is calling this new system, a Care-First Insurance system.
What is the Care-First Insurance System?
Instead of figuring out who caused the accident, each person involved would get compensation for their injuries directly from their own insurance company. The government is taking the position that this means less fighting over blame and more focus on healing.
No-fault insurance, like the new Care-First system that will be implemented in 2027 in Alberta, is an approach to auto insurance that focuses on providing medical benefits to those who get hurt in car accidents. Instead of spending time figuring out who is at fault for the accident, the new system’s priority promises to be getting medical care to anyone who has sustained injuries in motor vehicle accidents in Alberta.
The government’s thinking appears to be that when someone is injured, their main concern should be getting better, not dealing with lawsuits. The government argues that with no-fault insurance, people know they will receive the necessary treatment without worrying about legal battles.
This system also aims to make insurance more affordable for everyone. The government further takes the position that by shifting the focus away from lawsuits, there’s hope that premiums (the money paid for insurance) could become less expensive over time. People might even find discounts or savings because the process becomes simpler and quicker, the government argues. This could mean that drivers pay less each month while still having good coverage when it matters most.
However, there are concerns too. Some folks worry that by removing the need to determine who caused the accident, it might lead to some dangerous behavior on the roads. This is a unique approach to auto insurance that promises to place the focus on providing immediate support and medical coverage for those involved in car accidents, regardless of who is responsible for the accident. In fact it is the first of its kind in Canada in the sense that private insurance companies will be responsible for providing no-fault insurance services and not a Crown corporation like the no-fault automobile insurance systems found in jurisdictions like British Columbia and Manitoba. These no-fault systems emphasize personal injury protection (PIP), which means that persons who sustained injuries in auto accident can expect to receive the necessary medical treatment without worrying about lengthy lawsuits or determining fault right away.
In this model, if you get into an accident, your own insurance covers your medical bills, lost wages, and other expenses linked to injuries sustained during the event. The government’s rationale for bringing this system into place is that they expect that this system will bring peace of mind because they believe that it ensures that both drivers and passengers receive help as soon as possible without the stress of battling over liability. This is a significant change to how car insurance works in Alberta. The government has also stated that there will be certain situations where you can still sue after a motor vehicle accident in Alberta. Some of those situations based on what we know at the time of this post are: situations where the at-fault party is convicted of certain Criminal Code offences; Traffic Safety Act offences and offences under a prescribed Act, which we expect to be further spelt out in the Regulations.
Aside from the above exceptions, the Automobile Insurance Act also stipulates that lawsuits can still be commenced against automobile manufacturers, makers and suppliers of automobile parts, persons engaged in the business of selling automobiles, garage services operator, social host, municipality that has direction, control and management of the road on which the accident occurred or a “prescribed third party” which we also expect to be defined in the regulations.
Despite the fact that lawsuits can be brought against these entities named above, the law stipulates that the action may only be brought to recover the following non-pecuniary damages: General damages for pain and suffering and punitive or exemplary damages.
The new Automobile Insurance Act establishes the Care-First Tribunal. The Tribunal is an independent and neutral organization intended to adjudicate disputes between insurance companies and their insureds under the Care-First system. The success of the new no-fault (Care-First) automobile insurance system will rely a great deal on how effective the Tribunal is. In the absence of personal injury lawyers bringing lawsuits on behalf of persons who have sustained personal injuries in motor vehicle accidents in Alberta, the effectiveness of the Tribunal could assist in giving credibility to the Care-First insurance system.
When the system fully launches in 2027, legal experts expect that there will be several claims brought to the Care-First Tribunal very quickly in an effort to set precedents on likely issues that are expected to be coming up frequently between insurance companies and their customers who have sustained personal injuries in motor vehicle accidents in Alberta.
Contact WatchMaker Law if you have any questions regarding the Care-First Insurance System
A key takeaway from this blog is that there are lots of unknowns as regards the changes coming to car insurance system in Alberta. It is wise to speak with an experienced personal Injury lawyer like our lawyer, David Sowemimo at Watchmaker Law who has handled several complex cases involving both no-fault issues in Saskatchewan and Alberta to understand your rights and whether your specific case falls within any prescribed exceptions to the Care-First automobile system. Our lawyers can be reached at 825-203-9801. In addition, you can chat live with one of our lawyers right here on our website as well.
