Alberta is introducing a new automobile insurance model called Care-First. The new system focuses on providing injured people with faster access to medical care, rehabilitation services and income support following an automobile accident.
The goal is to help Albertans recover sooner while reducing the need for lengthy legal disputes. The new system will apply to accidents that occur on or after January 1, 2027.
What is Care-First?
Care-First is Alberta's new auto insurance framework that gives injured individuals access to benefits through their own insurance company, regardless of who caused the accident.
Instead of relying primarily on lawsuits to recover damages, the new model focuses on providing care, treatment and financial support when it's needed most.
This means Albertans will receive access to medical and rehabilitation benefits, income support and recovery services directly through their insurer.
What's changing?
Alberta's previous system
Under Alberta's Accident Benefits system until January 1, 2027:
- Medical and rehabilitation benefits are limited to $50,000
- Income replacement benefits are limited to $600 per week for up to 104 weeks
- Additional compensation often requires legal action against the at-fault driver
- Accident claims may involve lengthy litigation and court processes
Effective January 1, 2027
Under Care-First:
- Enhanced medical and rehabilitation benefits will be available
- Income replacement benefits will increase significantly
- Most injury claims will be handled directly through your insurer
- The need for lawsuits will be greatly reduced
- A new dispute resolution process will replace many court actions
The system is designed to prioritize recovery and support of the injured individual, while maintaining accountability for at-fault drivers through premium rating and underwriting processes.
Benefit overview
| Current Alberta System | Alberta Care-First |
| Medical and rehabilitation benefits of up to $50,000 for 2 years | Medical and rehabilitation benefits for all reasonable and necessary treatment expenses Additional and enhanced accident benefits, including:
|
| Income replacement capped at $600 per week for 104 weeks | Income replacement based on 90% of net income up to a gross income of $125,000 |
| Many injury claims require litigation | Benefits generally accessed directly through your insurer regardless of fault |
| Court-based dispute resolution | Benefit disputes can be heard by the Alberta Automobile Care First Tribunal |
| Right to sue available in many situations | Right to sue limited to specific circumstances established by legislation |
Coverage remains subject to policy terms, conditions, eligibility requirements and applicable legislation.
Right to sue
For accidents occurring on or after January 1, 2027, Care-First will replace most injury lawsuits with benefits accessed directly through your insurer, regardless of fault.
Under Care-First, legal action against a third party will be limited; however, there will still be certain circumstances where the right to sue applies, including:
- The at-fault driver is convicted of specified Criminal Code offences, such as impaired or dangerous driving.
- The at-fault driver is convicted of certain serious Traffic Safety Act offences.
- You have eligible out-of-pocket losses that exceed available insurance benefits, subject to the conditions established by legislation. Learn more about these exceptions.
A serious or catastrophic injury does not automatically preserve the right to sue. Eligibility depends on the circumstances and the applicable legal exception.
What if I disagree with my insurer's benefit decision?
You can challenge benefit decisions through the Care-First dispute resolution process, including the Alberta Automobile Care-First Tribunal. This is separate from suing the at-fault driver. Learn more about the Tribunal.
Your Gallagher broker can help explain your coverage and the claims process. A lawyer can advise whether your circumstances qualify for legal action.
What's not changing?
Several important areas of your auto insurance policy remain unchanged.
Third-party liability coverage
Third-party liability insurance remains an important component of your automobile policy.
Driver accountability
Drivers who cause accidents will continue to be held accountable through premium rating and underwriting practices. Fault still matters when determining insurance premiums and future insurability.