Alberta Announces Overhaul of Auto Insurance System with New 'Care-First' Model

The reforms aim to lower premiums and streamline claims but face challenges from extreme weather and public skepticism.

The Alberta government has proposed a 'care-first' auto insurance system, set to replace the current litigation-heavy model by January 2027.
Under the new system, injured drivers will receive care and compensation without the need for lawsuits, with rates determined by the government.
The reforms include raising the annual premium rate cap from 3.7% to 7.5%, aiming to stabilize the insurance market after two companies exited the province in 2024.
Extreme weather events, such as Alberta's costly hailstorms, remain a major concern for insurers and could strain the system despite the changes.
Public reaction has been mixed, with critics questioning whether the reforms will meaningfully reduce Alberta's high insurance premiums.