What we know about Care-First Auto Insurance so far…
Alberta has been working on finalizing the remaining regulations needed to implement its Care-First auto insurance model, clearing the way for the new system to launch on January 1, 2027. We know you are just as curious as we are about the upcoming changes, so - here is what we know so far.
The reforms are intended to shift the focus away from litigation and toward faster access to treatment and recovery services for people injured in motor vehicle collisions. The Insurance Bureau of Canada (IBC) says the framework will provide some of the most comprehensive injury benefits available anywhere in Canada.
The new regulations outline how permanent impairments will be assessed, how income replacement benefits will be calculated, the process for obtaining treatment and benefits, the circumstances under which lawsuits can still be pursued, and the structure of a new tribunal that will handle accident-benefit disputes.
Under the Care-First model, eligible insureds will receive income replacement benefits equivalent to 90% of their net annual earnings, based on a standard work schedule of 40 hours per week over 52 weeks. For individuals who suffer catastrophic injuries, compensation will be tied to Alberta's average industrial wage, using Statistics Canada's published earnings data. According to the IBC, the framework could lead to lump-sum payments for the most serious injury cases.
Here are some of the highlights mentioned:
Benefits within weeks vs months or years.
Unlimited access to treatment, such as chiropractic, physiotherapist or psychologist care, as long as it contributes to getting you better, if needed.
Income replacement up to $125,000 per year until retirement.
Spousal support up to $600,000 in the event of a death.
Permanent impairment benefit up to $295,000.
Another feature of the new regulations is the ability for insurers to offer optional “excess compensation” coverage. This coverage is designed for individuals whose earnings exceed the provincial maximum used to calculate income replacement benefits. To determine whether this option is appropriate, we may need to collect more detailed income information. These questions are intended to ensure you have adequate protection and that your benefits would better align with your actual earnings in the event of a significant injury.
New treatment and claims procedures are designed to provide injured Albertans with quicker access to care. During the first 12 weeks following a collision, an injured person can obtain an initial assessment from a physician, nurse practitioner, chiropractor, or physiotherapist without first seeking approval from their insurer. After that period, insurer authorization is generally required before additional assessments can proceed.
Where a health-care provider believes treatment falls outside the standard protocols, they can submit a care and treatment request to the insurer. The insurer must respond within five days or the request is automatically deemed approved. This provides a faster timetable to get you the care needed to recover.
In addition, the rules confirm exceptions to the ban on tort actions, allowing injured parties to sue when an at-fault driver has been convicted of a Criminal Code offence or a serious offence under Alberta's Traffic Safety Act - this means less people tying up courts with 12 km/h fender benders that gave someone ‘whiplash’, and instead focusing the courts attention on those who decide that driving under the influence is a risk worth the safety or lives of others.
The bottom line here is that Care-First is looking to save on legal costs and having insurance companies funding lawyers pockets less, and instead helping care for those who need benefits after becoming a victim in collision. Further, you can get assistance for medical costs needed to help you recover within days or weeks, without having to go through a court battle to get those benefits, sometimes months or years later.
The Automobile Insurance Rate Board (AIRB) data shows approved Care-First insurer filings produce an average premium reduction of 13.7%, or about $297 per private passenger vehicle - but let’s not take that as a guaranteed amount just yet! More information and data may be needed before any amounts can be set in stone.
Follow the Government of Alberta website here for updates and more details as they become available.