Starting January 1, 2027, a new auto insurance system called Care-First will take effect in Alberta. The provincial government calls it the biggest auto insurance reform in decades and expects it to help make policies more affordable for most drivers.
The big news for car owners is that the average savings on an insurance policy could be around 260–300 Canadian dollars per year, although the actual amount will depend on the individual driver, their driving record, accident history, and the coverage they choose. Some industry estimates project average savings of up to $366 per vehicle for basic coverage.
What Is Care-First
The new model changes the approach to resolving the consequences of traffic accidents. The primary focus is not on lawsuits, but on prompt treatment, rehabilitation, and recovery for accident victims.
The idea is that the majority of funds should go directly toward medical care and the victims’ recovery, rather than toward lengthy court proceedings and legal fees.
Why Insurance Should Become Cheaper
According to the Alberta government’s assessment, the current system results in significant administrative and legal costs, which are ultimately factored into the cost of insurance policies.
Under the new model, the following are expected:
- lower average insurance costs;
- faster access to medical care after a traffic accident;
- more funding for treatment and rehabilitation;
- fewer costly legal disputes;
- more stable growth in insurance rates in the future.
Will all drivers pay less?
Not necessarily.
The government is referring to average savings, so the amount of the insurance premium will continue to depend on many factors:
- driving history;
- number of claims;
- type of vehicle;
- place of residence;
- selected coverage;
- other individual risks.
At the same time, mechanisms to protect drivers with good insurance histories from sharp rate increases remain in place. Specifically, in 2026, a cap on increases to the base insurance premium will remain in effect for drivers who meet the established criteria.
What This Means for Albertans
For most car owners, the main change is that, following the launch of Care-First, insurance should become more predictable, and the process of receiving assistance after an accident should be faster and simpler.
If the reform meets the expectations of the government and the insurance industry, Alberta could end up with one of the most modern auto insurance models in Canada, where the primary focus is on the recovery of those affected, rather than on years-long legal battles.