Why are trial lawyers against the Care-First auto insurance system?

As the Alberta government moves closer to finalizing the Care-First auto insurance model, there is reason for optimism that the new system will result in lower average premiums for most drivers when it comes into effect in January 2027.

But Alberta’s trial lawyers aren’t happy about this and have launched an extensive pressure campaign to thwart government progress.

Under the new model, people injured in collisions will receive faster and better care to help them recover, with the most generous benefits in the country. For added peace of mind, drivers can choose extra coverage for more extensive protection.

In addition to medical needs, lumpsum payments for permanent impairments will be provided with one key difference from today – all the funds will go directly to those injured in collisions rather than disappearing in costly court battles.

Under the current system, legal costs for litigated claims vastly exceed – and are more than double – the amount provided in a cash payment for pain and suffering for those injured in collisions.

It’s no wonder accident lawyers are trying to prevent the changes. They want to maintain the status quo, and keep premiums high and their pockets full, rather than deliver what every day Albertans want – better care and improved affordability.

The reality is Care-First will provide Albertans with a greater ability to sue than drivers have under comparable systems in British Columbia, Manitoba, and Saskatchewan. Lawyers will still be able to represent injured persons following instances of impaired driving and other traffic safety or criminal code violations.

Drivers who cause accidents will still be held to account through increased premiums.

Premier Danielle Smith called on insurers and trial lawyers to make the new system work. That’s exactly what Alberta’s insurers intend to do. Our industry will continue to put forward recommendations focused on designing the best system possible for Albertans.

The provincial government can deliver a better, more affordable auto insurance system for Albertans in 2027. That’s a huge win for Albertans, who currently pay some of the highest costs for auto insurance in Canada.