What consumers want from Alberta’s Care First model — and why the industry thinks they won’t get it

Roughly half (52%) of respondents said lower auto insurance prices are what they want most from Alberta’s new Care-First auto insurance model, according to a survey of 850 Albertans conducted by Yorkville Strategies and commissioned by Insurance Bureau of Canada.

But IBC cautions the “potential for any savings [is] in jeopardy” unless the province lifts its ongoing rate cap and litigation is eliminated from the upcoming Care-First model, which is expected to be launched on Jan. 1, 2027. 

Only 19% of respondents said improved benefits and care for those injured in collisions are most important to them. 

Another 16% said eliminating the need to go to court to receive benefits is most important, and 13% didn’t know. 

“Albertans are clear they want the province’s Care-First auto insurance reforms to deliver significant savings,” said Aaron Sutherland, IBC’s pacific and western region vice-president. 

“The provincial government has the ability to deliver this, but improving affordability will require eliminating litigation in the new model, fully adopting best practices from other provinces, and promoting a competitive insurance market that offers a wide range of choice for drivers — something the ongoing rate cap is greatly eroding.” 

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Under Care First, insurers will provide medical and rehabilitation benefits and income replacement benefits to their consumers following a collision, regardless of fault. 

The government says Albertans injured in an accident will be able to access these enhanced benefits more quickly, with more certainty, and without the need to sue in court.  

Injured consumers will still be able to sue an at-fault driver in limited cases for: 

• pain and suffering when the at-fault driver is convicted of a driving or murder-related offence under the Criminal Code, or if the driver at fault is convicted of impaired driving or failing to stop for a peace officer under the Traffic Safety Act. 

• out-of-pocket expenses exceeding benefit limits provided by their auto insurance policy, which are not otherwise covered by Care First. 

IBC suggests maintaining any ability to sue could increase premiums by up to $136 annually per driver, according to a report commissioned by MNP. 

“When the Care-First auto insurance model was announced in November 2024, the government indicated it was basing its reforms on Manitoba’s system,” IBC writes in its recent commentary. “Since then, however, it has [been] confirmed that Care-First will retain a significant right to sue — a feature not found in Manitoba — and will offer the highest level of recovery benefits in the country.  

“These additions are expected to drive premiums higher than originally intended.” 

The government recently said benefits in Alberta’s Care First system mostly reflect an off-the-shelf approach seen in other “care-based” provinces, including B.C., Saskatchewan, Manitoba and Quebec. 

Fifty-four percent of respondents in Yorkville Strategies’ survey believe auto insurer profits are a key contributor to auto insurance premiums.  

And yet, auto insurers lost 20 cents for every dollar sold in premiums in 2024 due to profitability pressure from the government’s ongoing rate cap, according to Alberta’s Auto Insurance Rate Board, and cited by IBC. 

Asked to provide the two main reasons for premium increases, 54% in the survey said vehicles are becoming more sophisticated and costly to repair, while 52% cited inflation. 

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.