Care-First delivers substantial relief for Alberta drivers

The Alberta government’s new Care-First auto insurance model is designed to make mandatory auto insurance more affordable by changing how injury claims are handled, with a particular focus on providing care first rather than primarily cash payouts. Under this model, the government estimates that the cost of a basic auto insurance policy will decline by an average of $366 per year. This matters because every driver in Alberta is legally required to carry basic auto insurance, and rising premiums have become a significant cost-of-living concern for households across the province.

Mandatory, or basic, auto insurance in Alberta consists of two core components. The first is Third-Party Liability coverage, which protects drivers financially if they cause injury or property damage to others. This coverage pays for medical costs, repairs, and legal expenses incurred by third parties, and it is essential to ensuring that people harmed in a collision are compensated. The second component is Accident Benefits, which provides medical treatment, rehabilitation services, and income replacement to the policyholder and their passengers, regardless of who is at fault for the collision. These benefits are critical for helping injured drivers recover and return to work.

While basic coverage meets legal requirements, most Alberta drivers choose to purchase full coverage auto insurance to better protect their own vehicles and financial interests. Full coverage adds optional collision and comprehensive insurance to the mandatory policy. Collision coverage pays for repairs or replacement if the driver is at fault in an accident, while comprehensive coverage protects against non-collision risks such as theft, vandalism, hail damage, fire, and falling objects. Because these coverages significantly broaden protection, they also increase the overall premium charged to the driver.

Under the Care-First system, drivers who carry full coverage are still expected to see meaningful savings. While the reduction is smaller than for basic-only policies, average drivers are projected to save about $260 annually on average. These savings reflect lower injury-related claim costs rather than reductions to vehicle damage coverage. Overall, the Care-First model aims to balance affordability with continued access to medical care and financial protection, offering premium relief while maintaining core insurance safeguards for Alberta drivers.