The province plans to switch to a “Care-First” auto insurance model on January 1, 2027. Government messaging promises faster access to treatment, broader medical and income benefits, and “less need to sue,” including lifetime coverage for medically necessary rehab and up to 90% of net income replacement to age 65 for serious injuries.
Pain and suffering damages would be replaced by a one-time “permanent impairment” payment. (Alberta.ca)
Will this lower what you pay? That is the unanswered question. Even industry and policy observers say the premium impact is still “in the air,” and consumers are understandably confused. (Canadian Underwriter, AIRB) A recent survey reported only one in 5 Albertans believe premiums will go down under a no-fault style system, and most want to preserve the right to hold negligent drivers accountable in court. (CBA Alberta)
Another wrinkle: the province’s intentions paper outlines limited situations where you can still sue—such as when an at-fault driver is convicted of certain Criminal Code or Traffic Safety Act offences, or when out-of-pocket losses exceed benefit limits. It also previews a new tribunal to challenge insurer benefit decisions. Details will land in regulations before 2027. (Canadian Underwriter)
Meanwhile, the current “good driver” rate cap remains in place for 2025 (up to 7.5% when you include a natural-disaster rider), and even the regulator has fielded rising calls from drivers confused about which cap applies at renewal. (AIRB)
A real-world crash: how a claim could play out
Today (before 2027): In a rear-end collision with neck and shoulder injuries, you’d use the current system—pre-approved therapy under the Diagnostic & Treatment Protocols, then accident benefits with dollar and time limits. If your injuries persist and losses mount, (lost income, ongoing care, pain and suffering), you may pursue a tort claim against the at-fault driver and their insurer.
Under Care-First (from 2027): You would access expanded medical and rehab without suing. For lasting deficits, there’s a one-time permanent impairment lump sum (with ranges based on injury severity), plus income replacement at up to 90% of net income (subject to a cap). Independent medical assessments and a tribunal process would manage disputes. Lawsuits for pain and suffering would be restricted to defined offences (e.g., impaired driving convictions). Out-of-pocket losses above benefit limits could still be pursued. (Alberta.ca, Canadian Underwriter)
One industry analysis argues that keeping even a limited right to sue could add costs— estimating up to $136 a year in premiums—while government messaging emphasizes savings via reduced litigation. Expect debate to continue until the final regulations are set and the system has time to mature. (IBC, Alberta.ca)
How this affects seriously injured people
For survivors of spinal cord trauma, traumatic brain injury, or complex fractures, steady cash-flow for care is as critical as any courtroom result. “Care-First” promises lifetime treatment where there is a measurable benefit and higher income replacement than the current weekly cap—a welcome shift for families juggling rehab, home modifications, and time off work. (Alberta.ca)
Still, two (2) realities remain:
- Transition rules matter. Collisions before January 1, 2027, are generally handled under the current system. Collisions after that date will fall under “Care-First,” subject to the final regulations; and (ca)
- Accountability is not gone—but it is narrower. Court access is preserved in specific, serious circumstances and for certain uncompensated losses. If your harm stems from a criminal driving offence, you may still have a path to sue. Otherwise, disputes may run through the new tribunal. (Canadian Underwriter)
Because the most contentious driver of Alberta auto costs has been bodily injury litigation, the government is betting that moving care to the front of the line will stabilize premiums. Skeptics—many of them injured-person advocates—want proof that savings materialize without eroding fairness. (Canadian Underwriter, CBA Alberta)
Practical steps to protect yourself now
Policy changes do not change what you should do after a crash. The basics still protect your health and your claim:
- Get medical care immediately. Early diagnosis documents the injuries that matter most later;
- Photograph the scene and your injuries. Save dash-cam footage and keep damaged items;
- Exchange information, but do not debate fault. Provide facts to police and your insurer; avoid speculation;
- Track everything. Symptoms, time off work, receipts for meds, parking at therapy—small proofs add up;
- Be careful with forms and recorded statements. You can be polite and still say,
“I want to review this before I sign;” and
- Get legal advice early. A short consult can prevent long problems, especially with a new tribunal and evolving benefit rules on the horizon. (Canadian Underwriter)
Legal insight: your rights during the transition
Through 2025 and 2026, you will still see headlines about caps, insurers pulling back certain coverages, and the “Care-First” rollout. Even experts acknowledge affordability is unsettled, and the province’s own regulator notes consumer confusion is high. If an adjuster suggests a quick release or you’re told your benefits “won’t be covered under the new system,” pause and get advice—claims are governed by the law in force on your accident date, and your file shouldn’t be rushed to fit someone else’s timeline. (Canadian Underwriter, AIRB)
If you’re recovering from a serious injury and worried about paying rent, replacing income, or arranging in-home help, remember: the law is supposed to make you whole, not leave you stranded in bureaucracy. Press for the benefits you’re owed, and if you hit a wall— appeal, escalate, or call counsel who will.
Pipella Law has over 75 years of combined experience representing injured Albertans. We work on a contingency basis—no fees until you win—and we stay on top of reforms, so your claim strategy reflects today’s rules, not last year’s headlines.
Kindly lobby your MLA and spread the word to help put a stop to NO FAULT in Alberta. Log onto https://fairab.ca/; and https://www.notonofault.com/ for more info on the effects on auto insurance changes in BC and how they will impact you, your family and all Albertans.
https://chng.it/M96xLCQdMW Petition against No-Fault Auto Insurance
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