New Alberta legislation proposing major changes to the province’s auto insurance system
Posted March 24, 2025 4:12 pm.
Last Updated March 24, 2025 8:00 pm.
Change might soon be coming to Alberta’s auto insurance system. The government is proposing new changes to its current model, which includes affordability, people’s right to sue, and access to health and medical benefits.
Introducing a new legislation on Monday, Alberta is planning to keep its private model for auto insurance coverage. It’s adopting Manitoba’s model which limits the ability to sue following a collision in order to sustain lower premiums.
“I disagree with that because that throws the person injured under the bus again,” said an Albertan CityNews spoke to.
They told CityNews that they were injured in a collision a few years ago. Saying if he wasn’t able to sue, he wouldn’t have been able to get fair compensation.
“I was in a car accident and kind of hurt my back so I can’t work and the insurance company said oh here’s $5,000. My lawyer goes no, after seven years I basically got what I lost in wages.”
Alberta’s Bill 47 or the Automobile Insurance Act promises cost savings by shifting to a “care-first” private model, where the majority of injury claims are settled without going to court, except in some circumstances.
“Everyone injured in a traffic accident can access medical, rehabilitation, income support and permanent impairment benefits. That’s regardless of who is at fault in that collision,” explained Nate Horner, Minister of Finance.
“The system will still ensure that bad drivers held accountable through higher premiums and Albertans would still be able to sue at an fault driver in certain circumstances.”
The new model promises to reduce premiums by about 20 percent or $400 a year. Minister Horner told reporters Monday that the cost of litigation is causing insurance rates to increase. If passed he says, Bill 47 will reduce that amount.
“It’s just not true. Albertans pay the highest insurance rates in Canada and under the government affordability plan our insurance rates will go up by 15 per cent. So we’ll go from the highest rates in Canada to by far the digest rates in Canada,” explained NDP Leader Naheed Nenshi.
The government has yet to finalize the details of the care-first system, which is set to come into effect on Jan. 1, 2027.
