Care-First auto insurance arrives in Alberta on January 1, 2027

Alberta’s new auto insurance model brings improved injury benefits for everyone on the road. Here’s a look at what’s changing and what it means for Westland MyGroup members.

Understanding Alberta’s auto insurance reform

On January 1, 2027, Alberta will switch to a new Care-First auto insurance model.

Under Care-First, injury claims after a collision are no longer settled in court. Instead, you’ll get your benefits straight from your own insurer.

The change includes both personal auto and commercial auto policies. There’s nothing you need to do today.

Collisions that happen before January 1, 2027 follow today’s rules, even when the claim stays open past that date. Any collision on or after January 1, 2027 falls under Care-First, no matter

Care-First overview

Increased medical and rehab coverage. Today’s limit of $50,000 over two years is replaced with unlimited eligible treatment that continues as long as it supports your recovery.
Stronger income support. Benefits increase from $600 weekly for a maximum of two years to 90% of your net income, paid until age 65. Benefits are available up to a maximum income cap. Currently this is set at $125,000 in gross annual income and is reviewed every year for updates.
New benefit for permanent impairment. If an injury has long term impact, you may be eligible for a lump-sum payment rather than suing for pain and suffering.
Quicker support. Benefits can begin within weeks of an accident, not after months or years in court.
Steadier rates. A new rate cap holds average increases to 5% and renewal increases can’t exceed 10% for average drivers.
Fault still counts. Drivers who cause a collision still pay higher premiums, and serious offences like impaired driving can still lead to a lawsuit.

How the two systems compare

	Today	Care-First (starting Jan 1, 2027)
Medical and rehab benefits	$50,000 maximum over two years	Unlimited eligible treatment until you reach maximum recovery
Income replacement	The lower of 80% of gross earnings or $600 weekly, for up to two years	90% of net income until age 65, with gross income capped at $125,000
Lasting injuries	Compensation sought through the courts	A one-time, lump-sum permanent impairment benefit
Who can receive benefits	Largely depends on who caused the collision	Anyone injured, including drivers, passengers, cyclists, and pedestrians, whoever was at fault
Timing of benefits	Months or years, after a court process	Within weeks of an accident
Premium increases	No province-wide cap	Average increases held to 5%, and most drivers’ renewal increases limited to 10%

Check your coverage before Care-First begins

Care-First lifts the standard of care for everyone. It also limits income replacement and narrows when you can sue for the rest. Our team can walk you through what it means for your income, your family, or the vehicles your business relies on, long before the change in January 2027.

Alberta Care-First: Frequently asked questions

What is Alberta's auto insurance reform?

Beginning January 1, 2027, Alberta is replacing its court-based approach to injury claims with a model called Care-First. Rather than resolving injury claims through lawsuits, Albertans who are hurt in a collision receive enhanced medical, rehab, and income benefits from their own insurer, whoever caused the crash. It covers auto policies for both individuals and businesses.

What does Care-First cover?

Care-First pays for what you need to recover from a collision, and its benefits go well past today’s limits. It includes:

• Unlimited eligible medical and rehab treatment, as long as it supports your recovery

• Income replacement up to 90% of net income, paid until age 65

• A permanent impairment benefit, paid once, for injuries with lasting effects

• Benefits for personal care and support after a serious injury

• Funeral and death benefits to support families

Your actual benefits will vary based on the injury, your earnings, and your eligibility.

When do the changes take effect?

January 1, 2027. Any collision from that day forward falls under Care-First, whatever your renewal date is. Collisions before January 1, 2027 are still handled the current way, even when the claim stays open into 2027.

Is there anything I should do before January 1, 2027?

No. You won’t have to change, cancel, or renew your policy early. Your policy stays in place, and your coverage moves to the new system on its own. That said, a policy review is a smart move. Care-First changes the benefits you can count on after a collision, and a quick chat with the Westland MyGroup team can confirm your coverage fits your situation.

Will Care-First raise my premiums?

That depends, but Alberta has put limits on how far rates can climb. Along with Care-First, the province is bringing in a revised rate cap. Under it, insurers can’t push average rates up more than 5%. Most drivers will also see renewal increases limited to 10%. Drivers found at fault may not get that protection and could pay more. Taking legal costs out of the system is meant to make coverage more affordable over time.

Is Care-First the same as no-fault insurance?

Not entirely. Care-First is a care-based model. Your own insurer pays your benefits no matter who was at fault, so most people won’t need to go to court to get treatment or income support. Because benefits aren’t tied to fault, many people call it a no-fault system. Fault still plays a role, though. Drivers who cause a collision pay higher premiums, and suing is still possible in certain serious cases, like impaired driving.

Can I sue after a collision in Alberta?

Yes, in limited situations. Most injury claims under Care-First go through your insurer, not the courts. A lawsuit is still an option if the driver who caused the collision is convicted of a serious offence, like impaired driving, dangerous operation of a vehicle, or fleeing police. You may also have options for some losses that statutory benefits don’t cover.

Who does Care-First cover?

Anyone hurt in a collision. Drivers, passengers, cyclists, and pedestrians can all receive benefits, at fault or not. That’s a big shift from today, where your ability to recover depends largely on who caused the crash.

How much income replacement does Care-First provide?

As much as 90% of the net income you earn, paid until you turn 65. Today you’re limited to $600 weekly for two years, so that’s a big step up. One thing to keep in mind: the benefit is based on a maximum insurable income. That limit is currently $125,000 in gross annual income, and it’s adjusted every year. If you earn more, the standard benefit won’t cover your full income. Our team can help you see where that gap sits for your household.

What's the permanent impairment benefit?

It’s a single lump-sum payment when an injury leaves a lasting impairment. This payment replaces the court award for pain and suffering you’d have pursued before, and you get it on top of medical and income benefits. How much you receive is based on how severe and how permanent the injury is.

Are commercial and fleet vehicles included?

Yes. Commercial auto policies are included, along with personal policies. If your business has vehicles or a fleet, this changes how injury claims for your drivers are handled from January 1, 2027 onward. A review of your commercial coverage with us can show you what it means for your operations and your team.

Do I still get a say in my treatment?

Yes. Health professionals guide your care based on what supports your recovery, without today’s $50,000 limit over two years. And benefits can begin within weeks of your crash, not after a long court process.

This page summarizes the auto insurance changes announced by Alberta’s government. We’ll keep it current as new details are released, but please don’t rely on it on its own. For complete information, check the Government of Alberta’s website or talk to the Westland MyGroup team.