What You Need to Know About No-Fault Auto Insurance

No-Fault Won't Save You Money

No-Fault Favours Insurance Companies

No-Fault Takes Away Your Rights

There's a Better Way

What is Happening?

In November 2024, the Alberta government announced plans to change the province’s auto insurance system to a new “Care First” No-Fault model, to be administered by private insurers under Bill 47 (Automobile Insurance Act). The system is scheduled to take effect January 1, 2027.

Under Care First, whatever the insurance company says, goes. Your right to challenge their decision in court will be gone, and dangerous drivers will no longer have to answer for their actions.

No-fault insurance means that if you are injured or your vehicle is damaged in an accident, your insurance company pays for your losses regardless of who caused the accident. Victims will generally lose the right to sue at-fault drivers, except in cases of major traffic or criminal offences, or when damages exceed policy limits.

This gives insurers significant control over claims decisions. Your right to challenge decisions in court will be restricted, meaning dangerous drivers and negligent insurers may face fewer consequences.

Between now and January 2027, insurers are allowed to raise rates by up to 7.5% per year, and premiums are expected to rise 15% over the next two years, even before Care First begins.

In January 2025, Alberta’s Superintendent of Insurance revealed that insurers overcharged consumers between 2022–2024, issuing $3.1 million in fines to 21 companies. Yet these companies will gain more power under Care First, with fewer checks from courts or consumers.

The Alberta government’s Care First no-fault auto insurance system was sold to Albertans with the promise of $400 in annual savings. However, in a government report released Aug. 6 detailing how auto insurance will function under the new system in 2027, the promised $400 in savings is never mentioned.

 

 

How Can I Help?

At FAIR Alberta, we believe there are ways to make auto insurance affordable, accountable, and fair—without taking away your rights.

No-fault systems elsewhere have failed to keep costs down, often becoming the most expensive systems in their jurisdictions.

You can make a difference:

  • Contact your MLA to express opposition to Care First. Tell them that maintaining consumer choice, holding bad drivers accountable, and protecting Albertans’ rights is important to you.
  • Share this information with friends, family, and colleagues to educate others about the risks and flaws of no-fault insurance.

Together, we can protect Albertans’ rights, ensure accountability, and make auto insurance truly fair and affordable.

Alberta could reduce premiums today without taking away rights—by addressing repair costs, offering flexible coverage options, and making property damage coverage optional. Other reforms, such as improving accountability in both the insurance and legal sectors, could save Albertans hundreds of dollars a year without eroding their rights.