Alberta’s new Care-First auto insurance system: What drivers need to know
Starting January 1, 2027, Alberta will introduce a new Care-First auto insurance system, bringing significant changes to how injury claims are handled after a collision.
If you have heard the term “Care-First” but aren’t sure what it means, you aren’t alone. Here is a simple overview of what is changing, what it could mean for drivers, and why the province is making this move.
Why is Alberta changing its auto insurance system?
Following extensive public consultations, the Alberta government announced a new Care-First model designed to help address two key priorities voiced by Albertans:
- Better access to care and recovery support after a collision
- More affordable and stable auto insurance premiums over the long term.
The goal is to direct more resources towards treatment, rehabilitation and income support for injured people, while reducing the costs associated with lengthy legal processes.
What is Care-First auto insurance?
Under the new system, people injured in a vehicle collision will receive medical care, rehabilitation services and financial benefits directly through their own insurer, regardless of who caused the collision.
The focus shifts from determining fault before support can be accessed to helping injured people receive care and benefits as quickly as possible.
What benefits will be available?
The new model introduces enhanced injury benefits that may be available for as long as they are reasonably necessary. Benefits include:
Medical and rehabilitation care:
Albertans injured in a collision may be eligible for:
- Medical treatment and rehabilitation services until maximum medical recovery is reached.
- Personal care assistance, when needed.
- Travel and accommodation expenses related to treatment.
In some cases, support could continue for an extended period, including for people with severe, life-altering injuries.
Income replacement:
If an injury prevents someone from working, the new system provides:
- Income replacement equal to 90% of net income.
- Coverage up to a prescribed maximum income threshold.
- Optional opportunities for higher-income earners to purchase additional protection.
Other benefits may include:
- Caregiver benefits
- Childcare expense reimbursement
- Retirement income support
- Permanent impairment benefits, for life-altering injuries
- Death and funeral benefits for families affected by fatal collisions.
Accountability remains part of the system
Although Care-First changes how injury claims are handled, it does not eliminate driver responsibility. Albertans injured in a collision will be able to access the care and benefits through their own insurer without first proving fault, but drivers who cause collisions may still face several consequences including, potential for higher premiums, demerit points and police related charges. The reform changes how care and support are delivered, but it does not change the importance of safe driving.
A focus on both care and affordability
The province of Alberta has said the goal of Care-First is to improve access to care while supporting a more affordable and sustainable insurance system. Recent analysis from the Automobile Insurance Rate Board (AIRB) suggests Care-First could improve affordability for Alberta drivers while enhancing access to care and recovery benefits. As with any insurance system, individual premiums will continue to depend on factors such as driving history, vehicle type and coverage selections.
Looking ahead
The transition to Care-First represents one of the most significant changes to Alberta’s auto insurance system in decades. Beginning January 1, 2027, the new benefits will automatically apply to vehicle collisions occurring in Alberta, meaning drivers do not need to take any action.
At its core, the reform is intended to help Albertans access care sooner, receive stronger recovery supports and benefit from a more sustainable auto insurance system. For questions about your coverage, your insurance agent can help explain how the new system may apply to your individual situation.