Alberta’s proposed ‘Care First’ auto insurance model — announced in 2024 and slated for full implementation on Jan. 1, 2027 — is starting to come into focus, with new details provided to media on Aug. 6.

According to a highlights paper released alongside the briefing, the new system is intended to be more stable and streamlined, reduce time spent in court, and provide faster access to care.

Due to the ever-increasing complexity of vehicles and rising costs of health care, the paper notes that while the province allows insurance companies to run at a six per cent profit, many have been running at a 20 per cent loss with current premium levels, despite paying the second-highest premiums in Canada.

A major change with the insurance system will be related to medical and rehabilitation benefits; under the current model, benefits are limited to two years and $50,000. Under the Care-First model, there will be no time or monetary limits, though benefits will depend on medical requirements. 

The new system also significantly alters how legal claims are handled. Under the current tort-based system, an accident victim is often required to sue for expenses over and above what insurance pays out. Under Care-First, the only path open to victims for litigation will be if the person deemed at fault is guilty of a criminal traffic or murder offence. 

Other changes being introduced under the Care-First system include the addition of funding for personal care assistants in the case of catastrophic injuries, reimbursement for travel and accommodation expenses, and income replacement up to a maximum of $125,000 a year until age 65.

Those who suffer a permanent impairment will also be eligible for a lump-sum payment of up to $298,000. 

Finally, the Care-First insurance model is increasing funeral coverage to $10,300 from $6,150 for those who die in a motor vehicle collision, and increasing family payments to between $75,000 and $600,000, depending on the deceased person’s income. 

During the media briefing, it was noted that these are all bare minimums, and individual insurance companies may offer more as a way to differentiate themselves. It was also noted by officials that the benefits will be indexed to inflation.

Should an injured person disagree with decisions being made by their insurer on their behalf, disputes will be taken to the new Alberta Automobile Care First Tribunal, which will make final determinations on benefit rulings. 

While the new system greatly reduces the ability, or necessity, to litigate, the paper notes that poor drivers will still be penalized through higher premiums. 

The Government of Alberta introduced the Automobile Insurance Act, which outlines many of these changes, earlier in 2025, and it is expected to be proclaimed by the Jan. 1, 2027, implementation date.

In the meantime, the province will continue working on the policies, regulations, and fees that will go alongside the legislation while continuing to work with stakeholders.