Starting January 1, 2027, Alberta’s automobile insurance system is changing. The province is introducing a new Care-First Auto Insurance System, a model designed to provide people injured in motor vehicle accidents with faster access to medical treatment, rehabilitation, and financial support while reducing the need for lengthy legal proceedings.
While this represents one of the biggest changes to Alberta auto insurance in decades, most drivers do not need to take any action today. Here’s what you need to know.
What is Care-First Auto Insurance?
Care-First is Alberta’s new automobile insurance framework that focuses on helping injured people recover by providing access to benefits through their own insurer, regardless of who caused the accident. The system is intended to improve access to care, speed up injury claims, and reduce the legal costs associated with bodily injury lawsuits.
If you’re injured in an accident that occurs on or after January 1, 2027, you may be eligible for benefits that help cover:
- Medical treatment and rehabilitation
- Income replacement if you’re unable to work
- Personal care assistance for serious injuries
- Caregiver and family support benefits
- Permanent impairment benefits
- Death and funeral benefits
What’s Changing?
Enhanced access to injury benefits
Under Care-First, eligible injured individuals will access treatment and recovery benefits through their own insurance company rather than relying on litigation to obtain compensation. The goal is to ensure injured Albertans receive care and support sooner.
Less reliance on lawsuits
One of the most significant changes is that most injury claims will be handled through the Care-First system rather than through the courts. This is intended to create a more streamlined process and provide injured individuals with faster access to benefits.
Coverage extends beyond drivers
Care-First benefits may be available to drivers, passengers, pedestrians, and cyclists injured in a motor vehicle accident, regardless of who was at fault.
What Isn’t Changing?
Despite the introduction of Care-First, several important aspects of auto insurance remain the same.
Fault still matters
While access to injury benefits will generally not depend on who caused the accident, fault will continue to affect driver accountability. At-fault accidents can still impact your driving record and future insurance premiums.
Vehicle damage coverage remains unchanged
Care-First focuses on injury benefits. Coverage for vehicle damage, including Collision and Comprehensive coverage, is not changing as part of this reform.
Current claims remain under the current system
The new rules apply to accidents that occur on or after January 1, 2027. Claims arising from accidents before that date will continue to be handled under Alberta’s existing auto insurance framework.
Can I Still Sue After an Accident?
In most cases, Care-First is designed to reduce the need for lawsuits by providing direct access to benefits and recovery support. However, legal action may still be available in certain circumstances established under Alberta legislation.
The Government of Alberta has also indicated that drivers convicted of impaired driving or certain serious offences may lose some protections under the Care-First system and may be held personally responsible for damages resulting from an accident.
What Does This Mean for Alberta Drivers?
Whether you are a commercial or personal auto customer, your current policy remains in effect and no special action is required before January 1, 2027. The system that applies to a claim depends on the date of the accident, not the date you purchased your policy.
What steps should I take?
- Stay informed as additional Care-First details become available by visiting the Government of Alberta’s Care-First Information Page.
- Review your current auto insurance coverage.
- Speak with your broker if you have questions about how the new system may affect you, your family, or your business.
- Consider a full insurance review to identify any gaps or overlaps in coverage as Alberta’s insurance landscape evolves.
Disclaimer
This article is intended as a general overview of Alberta’s Care-First Auto Insurance System and should not be relied upon as legal or coverage advice. Details of the legislation and benefits framework continue to evolve. Coverage is always subject to policy wording, terms, conditions, limitations, and exclusions. Please speak with an Axis Insurance broker regarding your specific insurance needs.
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