Affordability and cost of living increases are key issues facing Alberta families. Along with inflation and rising energy costs, large premium increases for auto insurance have been a major strain on many Albertans in recent years who continue to struggle with the ongoing affordability crisis.

Thanks to the efforts of consumer advocates like FAIR Alberta and Albertans like you, last fall the Alberta government introduced a cap on premium increases and a cap on excessive insurer profits. From a consumer perspective, these caps are helping to keep insurance rates down and the industry in check. But many insurance companies oppose these consumer protections and want reforms to benefit them.

As of May 2024, Alberta’s government is now actively considering various new reforms to automobile insurance with the stated goal of providing Albertans:

“a simpler, more affordable and stable auto insurance system that protects them and their families on the road.”

The government ordered two reports on potential reforms, one looking at alternative insurance systems (the “Oliver Wyman Report”) and the other on the potential costs of those systems (the “Nous Group Report”) and those reports are now publicly available.

Additionally, the government recently launched a new online public engagement survey to collect feedback from Albertans on what they value and need from their auto insurance.
Responses to the survey must be submitted by Wednesday, June 26, 2024.

At FAIR Alberta, we think there are ways to reform the insurance system that promote affordability for Albertans, accountability for insurance companies, and expand choices for consumers.


Alberta currently operates under an “at-fault” automobile insurance system. If you are hurt or your vehicle is damaged in an accident, the insurance company of the person deemed “at-fault” pays for the losses of all people involved in the accident. Those involved in an accident can sue the “at-fault” driver’s insurance company for additional damages.

One idea the government is considering – pushed hard by the insurance industry and discussed in the new reports – is “No-fault” auto insurance.

“No-fault insurance” means that if you are hurt or your vehicle is damaged in an accident, your insurance company pays for your losses, regardless of who caused the accident. If you are a victim in an accident caused by a careless driver, you cannot sue them for damages. Whatever an insurance company says, goes. They don’t have to listen to you, your doctor, or even the courts.

No-fault systems tend to compensate bad, at-fault drivers for their own injuries more than our current system, essentially rewarding bad driving behaviour.

As for consumers, no-fault insurance won’t deliver premium savings. We’ve looked at these systems in the U.S, in Canada and over the world, and they tend not to save consumers or taxpayers money. At best is they transfer costs away from insurance companies and onto individual families and the provincial healthcare and social assistance systems. Costs from bad drivers don’t just disappear in no-fault systems. Sure, insurance companies make more in this system but it’s us as Albertans who pay more whether from our own pocket, or through increased taxes for health care and social programs.

Finally, no-fault strips consumer choice from the system. It’s a one-size fits all model that primarily benefits insurance companies and bad drivers.

In summary, No-fault takes away your rights and rewards bad drivers for no good reason. It is important to let the government know you do not support no-fault or hybrid no-fault auto insurance.


Now is the time to protect the “at-fault” insurance system in Alberta. Alberta’s at-fault auto insurance model is crucial. It ensures that drivers who cause accidents are held accountable. This promotes safer roads and deters reckless driving.

We must protect this system. It allows good drivers to hold bad drivers accountable through legal channels. This right to legal recourse is essential for fair compensation. Insurance companies aren’t always fair – in fact – far from it. Insurance companies and at-fault drivers must face accountability. They should not be allowed to shift the cost of their mistakes onto victims or public services.

We must also preserve consumer choice. A competitive insurance market benefits everyone. It offers better services and fair prices.

We must act now to safeguard the at-fault insurance model in Alberta to maintain accountability, ensure consumer choice, and promote real affordability. This is the way to keep our roads safe and auto insurance fair.


The most effective way to influence government policy and decision-making on this issue is to complete the new government survey on auto insurance, letting them know that accountability for bad drivers and consumer choice is important to you and that you do NOT support no-fault auto insurance.


You can find the new Government of Alberta survey on auto insurance here.

(Responses to the survey must be submitted by Wednesday, June 26, 2024).

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Were you able to secure fair compensation? What happened? How do you feel about the potential loss of protections if Albertans can no longer sue at-fault drivers?

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