Alberta’s Care-First auto insurance: What you need to know

Auto insurance is changing in Alberta. Starting Jan. 1, 2027, the new Care-First auto insurance system will prioritize faster access to care, treatment and income support after an accident. These changes may affect personal auto clients as well as businesses with commercial auto policies, fleet vehicles, employee drivers or vehicles used for business purposes. Please note: The information below is subject to change. Check this page regularly as more updates become available.

What is Care-First auto insurance?

Care-First is a new system designed for Alberta drivers that will change the process for resolving injury claims. Today, if you are injured in an accident, you may need to sue the at-fault driver to receive compensation beyond basic accident benefits.

With Care-First, you would work directly with your own insurance company regardless of who caused the accident. Through Care-First, injured people would have access to enhanced benefits and support to help with recovery. For businesses, this means the claims conversation may also involve employees, drivers, fleet vehicles or commercially insured vehicles, depending on the circumstances of the accident and policy structure.

What you can expect

The main change is expanded accident benefits. Care-First is expected to provide enhanced medical, rehabilitation and income support to injured drivers, passengers and others injured in automobile collisions, subject to the final rules and policy wording in place at the time of loss.

What’s changing

Medical & rehabilitation care: Access to necessary treatment without dollar and time limits, where reasonable and necessary.
Income replacement: Support based on a percentage of net income, up to set limits. Income information may be requested as part of renewal or claims handling.
Permanent impairment: New lump-sum payments for lasting injuries.
Caregiver support: Coverage for childcare, caregiving and recovery needs.
Death benefits: Increased support for spouses, dependants and eligible family members.
Commercial auto considerations: Businesses with commercial auto policies or fleets may need to review employee driver information, vehicle use, income-related questions and optional endorsements as more details are finalized.

What’s not changing

Care-First applies to accident benefits only. Other parts of your policy are expected to remain largely the same, including:

Physical damage and liability coverage such as collision, comprehensive, direct compensation property damage and third-party liability.
Fault will still matter for pricing, driving records and certain claim outcomes.
Premiums are still based on driving history, claims, vehicle information, location, vehicle use, and the coverage selected.
For commercial clients, underwriting may continue to consider fleet size, vehicle class, business use, radius of operations, driver experience, claims history and other risk factors.

How disputes may be handled

Under Care-First, insurers are expected to clearly explain benefit decisions. If a claimant disagrees with a decision, they may be able to request an internal review. A new Alberta Automobile Care-First Tribunal is also expected to handle disputes, with judicial review still possible in certain circumstances.

Adjusted rate cap in 2027

Alberta’s government is also introducing a new adjusted rate cap alongside the Care-First auto insurance system.

Under the adjusted rate cap, insurers will not be able to raise average rates by more than 5%. Individual average drivers will see their auto insurance premiums capped at 10% at renewal. The limit is intended to restrict how much premiums can rise and keep overall policy costs under control.

Drivers could lose rate protection under the adjusted rate cap if they:
- Are involved in a new at-fault accident
- Are convicted of a driving offence
- Add a driver or change vehicles
- Adjust coverage

Whether a driver is eligible for the adjusted rate cap is determined on their insurance policy renewal date.

What personal and commercial auto clients should consider

The Care-First model is intended to provide more consistent access to care if someone is injured in a collision. However, it remains important to understand the full policy, not just the accident benefits portion.

For personal auto clients

Review your liability limits and optional coverages.
Understand how collision, comprehensive and other physical damage coverages protect your vehicle.
Ensure listed drivers and vehicle use are accurate.
Ask your Navacord advisor how claims history, driving record and vehicle type may affect your premium.

For commercial auto and fleet clients

Review commercial auto schedules, listed units, driver information and vehicle use to make sure policy details remain accurate.
Consider whether employee drivers, contractors, fleet vehicles, leased vehicles or business-use vehicles could be affected by the new accident benefits process.
Review liability limits, physical damage coverage, endorsements and any optional accident benefits or top-up coverage that may become available or recommended.
Confirm how workplace injuries, WCB-related claims and internal incident reporting should be handled if an employee is injured in an automobile collision while working.
Contact your advisor if you are unsure how upcoming reforms may affect your commercial auto policy, fleet program or renewal information.

Questions?

If you have any questions about the Care-First program, reach out to your Navacord advisor. They can review your current policy and discuss how these changes may impact you, your family, your business or your fleet.

Reminder: Details about the Care-First program are still being finalized, and this page should be updated regularly to reflect any changes.