Alberta’s Care-First Auto Insurance Changes: Everything Drivers Need to Know
Alberta’s auto insurance system is changing.
here’s what Care-First means for your coverage, and what happens if you’re injured in a collision.
Starting January 1st, 2027, Alberta is introducing a new system called Care-First auto insurance.
The biggest change isn’t how you buy insurance or what happens when your vehicle gets a dent; It’s how the insurance system supports people injured in motor vehicle accidents.
Less Litigation, Easier Access to Medical Care
Care-First significantly expands accident benefits and shifts the emphasis from litigation to treatment, rehabilitation, and recovery. Injured Albertans will generally access these benefits through the insurance system regardless of who caused the accident.
What is Care-First auto insurance?
Care-First is Alberta’s new system for managing injuries and accident benefits following motor vehicle collisions.
Under the new system, people injured in an accident will generally access benefits through their insurer regardless of fault. Insurers will help explain available benefits, confirm eligibility and support customers through the claims process.
The goal is to provide earlier access to care and more comprehensive financial support while reducing the need for a lengthy litigation process.
Why is Alberta changing its auto insurance system?
Under Alberta’s existing system, accident benefits provide medical and income support after an accident, but those benefits have limits. In some cases, people who are not at fault must pursue additional compensation through the courts.
The Government of Alberta says Care-First is intended to address rising injury-claim and legal costs while expanding the benefits available to people injured in collisions.
The Alberta insurance model is changing from a court-based system with limited benefits to a care-first system, focused on expanded benefits, earlier access to treatment, and prioritization of recovery.
What’s changing under Care-First?
Care-First is bringing several significant changes to Alberta auto insurance.
Faster, expanded care and rehabilitation
Care-First is designed to provide earlier access to treatment and rehabilitation, with expanded and more flexible benefits that can continue as needed to support recovery.
More financial support
Care-First increases financial supports such as income replacement for eligible injured Albertans. Eligibility and benefit amounts will depend on the circumstances of the claim and the rules in effect when the system launches.
New benefits for permanent and catastrophic injuries
Care-First introduces new benefits for people who experience permanent or catastrophic injuries, with support that may continue for life depending on the circumstances.
Additional recovery supports
Depending on eligibility and circumstances, Care-First may include additional supports for recovery, including personal care and other assistance connected to an injured person’s needs.
The Court-Based Verus Care-First Systems
| Court-based System | Care-First System |
|---|---|
| Fixed minimal limits on care and support | Expanded and more flexible benefits made accessible through insurers regardless of fault determination |
| Legal action often required to access more compensation | No need to go to court to receive benefits |
| Long wait times for court resolution | Faster access to care and services |
| Focus on fault and litigation to determine who pays for compensation | Focus on recovery and support through the injured person's own insurance provider |
Will I still be able to sue after an accident?
In most cases, Care-First is designed to provide benefits without requiring an injured person to go to court.
However, access to the courts isn’t eliminated completely. Legal action may still be available in certain circumstances, including where an at-fault driver is convicted of specified serious driving offences like impaired driving, or for certain costs that exceed available insurance benefits.
Care-First will also include a dispute resolution process for disagreements about benefit decisions.
Will fault still Affect Alberta Insurance?
Yes. Receiving Care-First injury benefits generally won’t depend on whether you caused the accident, but insurers will still determine fault.
An at-fault accident can continue to affect your insurance premium (unless you have. a no-fault insurance policy), and drivers remain responsible for reporting collisions to their insurer.
Care-First isn’t a “no consequences” system. It separates access to care from the question of who caused the collision.
What’s not changing?
Care-First primarily changes bodily injury and accident benefits while the following aspects of Alberta auto insurance remain intact:
Direct Compensation for Property Damage (DCPD) remains in place.
Collision and Comprehensive coverage are not being changed by Care-First.
Fault will still be determined following an accident.
Out-of-province claims will continue to follow the applicable rules and agreements between jurisdictions.
Care-First is changing how the system responds when people are injured without replacing your entire auto insurance policy.
When does Care-First apply?
Care-First is based on the date of the accident, not your policy renewal date.
If an injury-producing accident happens before January 1, 2027, the existing court-based system applies.
If it happens on or after January 1, 2027, the bodily injury and accident benefits claim will be handled under Care-First.
Once a claim begins under one system, it stays there for the life of that claim.
Do I need to change my policy?
The new system takes effect across the province on January 1, 2027.
Your individual policy still matters, though. With Care-First, coverage limits, deductibles and optional protections still vary based on the auto insurance policy you choose, so your renewal is always a good opportunity to review what you’re carrying and make sure it meets your needs.
What should I do before January 1st?
There is no special Care-First selection to make when buying or updating your auto insurance policy. The new system applies based on the date of the accident.
The best thing you can do is understand what’s changing and review your coverage when your policy renews.
Need help navigating Alberta’s Care-First changes?
If you’re unsure about your coverage or how Care-First affects your Alberta auto insurance policy, talk to us. Our licensed brokers can walk you through your coverage and help answer your questions.
Give the Alteri team a call at (604) 564-5994 or email us at info@alteri.ca. We’re here to help make insurance easier to understand.
