Big changes are proposed to car insurance in Alberta.
The government is planning to switch to a “Care-First insurance system,” which is no-fault insurance. So, what does this mean? It means that if you’re in a car accident, your own insurance will cover your medical costs and other losses, no matter who’s at fault. But here’s the catch—you’ll no longer be able to sue the at fault party for compensation in most cases. And many injured Albertans will get no compensation at all for pain and suffering.
Starting in January 2027, insurance companies, not the courts, will decide what care and benefits you get. We believe strongly that this system will be worse for Albertans and will not deliver on the promise of reduced auto insurance premiums. It will simply mean more profits for insurance companies at the expense of injury victims and taxpayers.
While the government is in the early stages of making these changes, we want to address what this will mean for injured Albertans and those currently navigating injury claims.
Here’s what we know:
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- The government intends to move towards a private no-fault model, which they are calling a “Care-First” system.
- No changes will take effect until January 2027. If you are injured in an accident before that date, you will still have up to two years from the date of your accident to file an injury claim.
- There will continue to be opportunities for public feedback, and we’ll make sure our voice is heard in those discussions. If you share concerns about these changes, we encourage you to contact your local MLA to voice your opinion and help ensure injured Albertans continue to receive fair treatment. Tell them to say no to no-fault.
The work we do has a profound impact on the lives of injured Albertans, ensuring they receive fair compensation and care when they need it most. A Care-First insurance system as it has been announced so far, is a “no-fault” type of system that shifts decision-making power from the courts to insurers. In other words, if you disagree with what the insurance company offers you, you won’t be able to hold them accountable in court. This massive power imbalance raises concerns about transparency and fairness for those navigating life after an injury. At Litco Law, we’ll continue to advocate for injured Albertans, protecting their right to sue and seek fair compensation.
What This Means for You
If you are currently pursuing an injury claim, rest assured—these discussions and any future changes will not impact your case. Additionally, if you are involved in an accident between now and January 2027, you will still have the right to hire a lawyer and pursue compensation. In the meantime, we’ll continue to support our clients and work to achieve the best possible outcome for you.
We believe that Albertans should have the right to seek fair compensation and hold at-fault parties accountable. As discussions progress, we will keep you informed, answer your questions, and continue to advocate for a system that prioritizes transparency and fairness for injured Albertans.
If you have questions or want to learn more, don’t hesitate to reach out to us.
Additional resources:
- FAIR Alberta – Learn more about no-fault and what actions you can take
- Talk to your MLA – Make sure your voice is heard
Articles:
- Calgary Herald “No-fault auto insurance means no accountability and no recourse”
- CTV News “Albertans cool on the idea of ‘no fault’ auto insurance, poll says”
- Penticton Herald “No-fault insurance is no good, says crash victim”
- UCalgary News “No-fault automobile insurance silences car crash victims and reduces benefits”
