Effective January 1, 2027
The new model, called Care-First, is designed to improve access to care and support for individuals injured in automobile accidents, regardless of fault.
What is Care-First?
Care-First is a new approach to auto insurance in Alberta that prioritizes timely access to medical treatment, rehabilitation, and income replacement benefits for injured individuals. This model reduces, or eliminates the need for legal action and focuses on recovery and support. Vehicle physical damage coverage will remain the same.
Intended Benefits of Care-First
- Enhanced Medical and Income Benefits: Significantly improved coverage for medical care, rehabilitation, and income replacement. (please reference Alberta Government Care First Comparison)
- No-Fault Coverage: Benefits apply regardless of fault.
- Permanent Impairment Compensation: Lump sum payments will be provided for assessed permanent impairments, based on the severity and nature of the injury.
- Streamlined Claims Process: You and your passengers will work directly with your own insurer, with the goal of reducing delays.
- Reduced Legal Costs: Minimizing litigation, the system aims to lower overall costs and stabilize insurance premiums.
Your Right to Sue – Limited Circumstances
While Care-First limits the ability to sue for injuries, you may still pursue legal action in specific cases such as offences under the Criminal Code or Traffic Safety Act (eg: impaired driving) or if your out-of-pocket expenses exceed the coverage limits and are medically necessary and evidence-based.
Dispute Resolution
A new Alberta Automobile Care-First Tribunal will be established to ensure fairness and resolve disputes related to benefit decisions.
Effective Date
This change applies only to accidents occurring on or after January 1, 2027. Claims from accidents prior to this date will continue under the previous system.
Note: The above may be subject to change prior to implementation of January 1, 2027
If you have any additional questions, please reach out to your CMB broker.