At first glance, Alberta’s proposed “Care-First Auto Insurance System” promises lower premiums, better care, and a more efficient claims process. The government is “marketing this reform” to save Albertans money—up to $400 annually by 2027—while ensuring timely medical care and fair accountability for at-fault drivers. But beneath the surface of these promises, lie several concerns that could profoundly impact Albertans, especially those who suffer severe injuries in car crashes.
Reduced Incentive for Safe Driving
Transitioning to a “no-fault system” has been associated with increased collisions and injuries. After British Columbia’s switch to a “no-fault system,” collisions surged by 15%, while Quebec saw a 6.7% increase in fatalities, and a 26.3% rise in injuries.
The Promise of Affordability
While the prospect of reduced premiums is enticing, there’s a catch: the government has approved a 7.5% rate hike for good drivers starting in 2025. This sharp increase will come from drivers’ pockets, years before they see any savings. This upfront financial burden could be significant for families already grappling with rising living costs.
Moreover, while the system claims to reduce legal and administrative costs, the long-term financial impact of implementation still needs to be clarified. Will the promised savings offset these costs, or will Albertans find themselves footing an even larger bill in the coming years? A no-fault system will shift the economic burden to the public in health care costs, and business through increased WCB premiums.
Historical data shows no-fault systems can lead to higher premiums. In 2020, four out of 7 American states with the highest premiums in the USA operated under “pure no-fault systems,” including New York, Michigan, Florida, and New Jersey.
Limited Legal Recourse: A Loss for Injury Victims
One of the most contentious aspects of this new system is its shift toward a “no-fault model,” significantly limiting victims’ ability to sue for compensation. Under the current system at-fault system, car accident victims can pursue legal action to secure compensation for pain, suffering, and financial losses caused by another driver’s negligence. This new proposed model restricts this right, allowing lawsuits only in cases of criminal negligence, or significant out-of-pocket expenses which will restrict victims’ options for fair compensation.
This change could be devastating for victims of catastrophic injuries. Legal recourse is a critical check and safeguard for you against insurance companies, which will undervalue claims and/or deny necessary care. Without it, injured parties are only left to rely on insurers, whose decisions will be governed by “government-set rates” and “internal policies”—not by the individual circumstances of each victim. Classification: General
Experience from British Columbia’s no-fault system paints a cautionary tale. Victims often receive reduced compensation with lump-sum payments replaced by ongoing care managed by insurance adjusters. Vulnerable populations—including those with pre-existing conditions, students, and part-time workers—are disproportionately affected, receiving lower compensation due to their limited income or unique circumstances.
The Human Cost
Beyond the financial and legal implications, the new system raises profound ethical questions. What happens to those whose injuries require care beyond the limits of the standardized benefits? Who ensures that insurers provide adequate and timely support without the oversight of the Courts?
Families of accident victims in British Columbia frequently voice dissatisfaction with their no-fault system, citing inadequate compensation and insufficient care. Alberta risks facing the same public criticism if the proposed reforms fail to account for the needs of the most vulnerable.
A Path Forward
While the government has chosen a privatized no-fault system over a publicly delivered one, there are valuable lessons to be learned from other provinces. Alberta must prioritize transparency, robust oversight, and mechanisms that protect individuals from unfair practices by insurance companies.
Furthermore, the province should carefully evaluate whether this system balances affordability and fairness. Suppose the goal is to streamline processes and reduce costs. In that case, safeguards must be in place, to ensure that victims do not lose their right to fair treatment in the name of efficiency.
Alberta’s Care-First auto insurance system promises progress, but at what cost? Limiting legal resources and transferring power to insurers risks leaving victims without the compensation and care they need to rebuild their lives. While affordability is important, it should never come at the expense of fairness and justice for those who need it most.
Albertans deserve a system that reduces premiums and ensures dignity and protection for accident victims. It is vital that the voices of those impacted by these changes are heard and their rights safeguarded in the pursuit of reform.
It is never too late to fight for this change in Alberta. Call your MLA and log onto www.fairab.ca and https://www.notonofault.com/contact for more info on the effects of “no fault” in British Columbia.