Columnist Rick Bell raised the alarm this weekend, asking whether the provincial government could hit Albertans with a $400 auto-insurance premium hike. It’s a fair worry, and it captured attention for good reason. (X (formerly Twitter))
Here’s what we know today. For 2025, Alberta is capping increases for “good drivers” at a maximum of 7.5% (5% plus a 2.5% natural-disaster rider tied to events like the 2024 Jasper wildfire and Calgary hailstorm). The cap came after a 3.7% ceiling in 2024, and the province defines “good driver” narrowly—no at-fault collisions in the last 6 years, no Criminal Code traffic convictions in four, no major traffic convictions in three, and no more than one minor conviction in three years. (Alberta.ca)
So, will you see a $400 jump? That depends on your starting premium, and whether you meet the “good driver” criteria. For context, the Auto Insurance Rate Board (AIRB) reported the average full-coverage premium was $1,703 in the first half of 2024 (up 3.9% year-over-year). A $400 increase would be roughly a 23% bump—well above this year’s 7.5% cap for good drivers. (AIRB)
The bigger change lurks on the horizon: Alberta’s new “Care-First” insurance model. The Automobile Insurance Act (formerly Bill 47) received royal assent on May 15, 2025. It shifts the system toward treatment-first benefits and will restrict suing the at-fault driver except in defined situations (for example, certain criminal offences or losses that exceed policy benefits). The government says “Care-First” starts January 1, 2027, with many details to be set by regulation. (Alberta.ca)
Why premium pressure matters if you are hurt: coverage choices collide with recovery needs
When money’s tight, the instinct is to trim coverage. That’s exactly how short-term savings turn into long-term loss, after a serious crash.
Under Alberta’s current system, “Section B” medical and rehab benefits typically top out at $50,000 for two years. The province says “Care-First” would remove that cap and pay for eligible treatment, as long, as there is measurable benefit—but that’s not in place until 2027. If you cut back coverage today and a collision causes a traumatic brain injury or chronic pain, you could be stuck trying to bridge the gap while litigation and fault issues unfold. (Alberta.ca)
Don’t forget property damage either. Since 2022, direct compensation for property damage (DCPD), means you deal with your own insurer for vehicle repairs when you are not at fault. It is faster—but your choices on optional coverages and deductibles affect what is paid and how quickly your car gets back on the road. (Alberta.ca)
Smart renewal strategies that protect your health and your claim
You can lower risk without gutting protection. Focus on changes that reduce premiums, while preserving the coverages that matter most, after a serious injury.
- Keep (or raise) third-party liability limits. Alberta’s legal minimum is $200,000— far too low to cover a multi-vehicle crash with major injuries. Many brokers recommend $1–2 million. Start with the facts: the AIRB confirms the $200,000
minimum; consumer-facing guidance commonly recommends at least $1–2 million; (Alberta AIRB, Alberta Motor Association)
- Add or confirm SEF 44 (Family Protection) endorsement. If the at-fault driver is uninsured or underinsured, SEF 44 lets you recover up to your own liability limits. It’s an approved Alberta endorsement and—dollar for dollar—one of the best safety nets you can buy; (ca)
- Adjust deductibles, not core benefits. Increasing collision/comprehensive deductibles saves money without stripping the medical/rehab and liability coverage that matter after a serious injury;
- Consider usage-based insurance (UBI). If you’re a cautious driver, telematics programs can unlock discounts. The province explicitly supports UBI as part of its affordability measures; and (ca)
- Shop around—carefully. Rates vary widely. The AIRB even hosts a comparison tool. One caveat: switching insurers can affect your “good driver” cap timing; AIRB notes you come out from under that cap when you switch, so weigh the savings against the protection the cap provides. (ca, AIRB)
If a collision happens, act fast to protect your health and your claim
Start with medical care the same day—even if you feel “okay.” Many serious injuries declare themselves late: concussion symptoms, neck stiffness that masks a disc injury, internal soft-tissue damage. Photograph vehicles, the scene, road conditions, and visible injuries. Get names and contacts for witnesses. Notify your insurer promptly; but stick to facts; do not speculate about fault. Keep a running log of symptoms, appointments, and out-of-pocket costs. If an adjuster pushes for a quick settlement before you understand the extent of your injuries, slow the process down and get legal advice. (Limitations can be strict, so timing matters.)
The legal landscape is changing—your rights still matter
As “Care-First” rolls in, the right to sue, narrows in many cases, but not all. If the other driver is convicted of certain offences, or if your losses exceed what the policy pays, litigation may still be available. The province also plans a tribunal for care and treatment disputes. None of this lessens what you and your family face in the first weeks after a crash—lost wages, a piling stack of forms, and uncertainty about long-term recovery. That is where experienced counsel helps you map a plan, quantify future care needs, and keep insurers on schedule with benefits. (Alberta.ca)
Pipella Law has over 75 years of combined experience helping injured Albertans get real answers and real results. We work on a contingency basis, which means no fees until you win—so you can focus on treatment while we focus on the case.
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
If you or a loved one have been involved in an accident, you know how devastating the consequences can be. That's why having an experienced personal injury lawyer on your side is crucial to help you navigate the legal system and obtain the compensation you need to cover your medical bills, lost wages, and long-term care in Alberta.
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