If you drive in Calgary, the questions you bring to your car insurance broker in Calgary at your next renewal are about to change. Alberta is replacing the way injury compensation works in auto insurance, and the new system starts on January 1, 2027. It moves people hurt in collisions away from long legal claims and toward benefits paid while they recover, and it comes with a new rate cap and a new way of setting premiums. This guide explains what the Government of Alberta has published so far, what it means for your coverage, and what to ask before your 2027 renewal.
Every figure in this post comes from the Government of Alberta, through the Alberta.ca Care-First page, its comparison of accident benefits and two provincial news releases, and each one is named where it appears. Nothing here predicts what your own premium will be, and nothing here is legal advice. The goal is simpler, to help you understand the change well enough to have a useful conversation about your own policy when renewal comes around.
What Is Care-First Auto Insurance and When Does It Start in Alberta
Quick Answer: Care-First is Alberta’s new auto insurance system, and Alberta.ca says it begins January 1, 2027. It is built around care for people injured in collisions, with treatment and benefits starting within weeks rather than after months or years of legal claims. The right to sue remains only where the at-fault driver is found guilty of certain serious offences.
Care-First auto insurance is Alberta’s replacement for the current injury compensation model. The Government of Alberta’s comparison document describes it as a new system that will provide improved medical, rehabilitation and income support benefits for all Albertans injured in an accident, regardless of fault, while continuing to hold at-fault drivers accountable through higher premiums. The Alberta.ca Care-First auto insurance page sums up the aim as better, faster and more reliable auto insurance, with care that is not held up by court delays.
The same comparison document explains where the starting benefit levels come from. Initially, benefits under Care-First will be set at the levels in place in Manitoba at that time, with one exception. The income replacement benefit is set $5,000 higher than Manitoba’s to reflect higher average incomes in Alberta, according to the Government of Alberta. After the system starts, the document says Care-First benefits will be indexed annually for inflation, so the limits are expected to move over time rather than stay fixed.
Care-First does not make the province your insurer. The comparison document describes the benefits that will be standard under any Care-First auto insurance policy, and it notes that an insurance company may offer higher levels of coverage through endorsements to the standard policy. Your policy will still come from an insurance company, which is why your first renewal under the new system is the moment to review what your own policy includes.
Alberta.ca explains the reasoning in plain terms. Under the current system, legal claims can take months or years, and recovery is often delayed by litigation. The province says Care-First is meant to bring more stable insurance costs, with savings from reduced legal costs going toward increased benefits and long-term affordability and stability. That is the context behind both the broader benefits and the narrower right to sue that Calgary drivers will see in 2027.
Key Difference: Today, much of the compensation for a serious injury depends on suing the other driver and waiting for a settlement or a court decision. Under Care-First, Alberta.ca says injured people receive benefits within weeks, and the right to sue is limited to cases where the at-fault driver is found guilty of certain serious offences.
How Does Care-First Compare With Alberta’s Current Auto Insurance System
Care-First replaces capped, time-limited accident benefits with much broader benefits, and in exchange it narrows the right to sue. The table below uses only the figures and wording the Government of Alberta publishes on Alberta.ca, from the Care-First page and its comparison of accident benefits. The comparison document lists the Care-First amounts as maximum limits as of 2025, and those limits are set to be indexed for inflation.
| Benefit or Rule | Current System, per Alberta.ca | Care-First From January 1, 2027, per Alberta.ca |
|---|---|---|
| Medical and rehabilitation treatment | $50,000 for up to two years following an accident | Unlimited for all reasonable and necessary expenses until maximum medical recovery, and potentially for life |
| Timing of benefits | Legal claims can take months or years | Treatment and benefits within weeks of a collision |
| Income replacement | The lesser of $600 per week ($31,200 a year) and 80% of average gross weekly earnings, for a maximum of two years | 90% of net income up to a maximum annual gross income of $125,000, until retirement |
| Payments to family after a death | $10,000, plus $15,000 for a spouse, plus $4,000 per child, plus 20% for multiple survivors | Spouse or partner from $75,623 to $600,000, tied to the gross yearly income of the person who died, plus set amounts for dependants |
| Right to sue | Not-at-fault drivers can generally sue, except for narrowly defined minor injuries | Possible if the at-fault driver is found guilty of certain serious offences, such as impaired or dangerous driving |
Two points help when reading the table. First, the current system column shows the standard accident benefits in Alberta today, which sit alongside the right to sue the at-fault driver for more, so they are not the whole picture of what an injured person might eventually receive through the courts. Second, Alberta.ca lists a permanent impairment lump sum among the Care-First benefits, and the comparison document shows no such benefit in the current accident benefits. The amount depends on the injury, so ask your insurer or broker to walk through it with your renewal documents.
What Happens After a Collision Under Care-First
After a collision under Care-First, the injured person’s focus shifts from building a legal claim to getting treatment and income support. Alberta.ca says treatment and benefits can begin within weeks of a collision, compared with months or years under the current system, where recovery is often delayed by litigation. The three areas below are where Calgary drivers and their families will notice the change most.
Treatment and Rehabilitation
Alberta.ca describes unlimited access to treatment, such as chiropractic, physiotherapy or psychology care, as long as it contributes to getting you better. The comparison document puts it as unlimited coverage for all reasonable and necessary medical and rehabilitation expenses until maximum medical recovery, and potentially for life. For the current system, the same Alberta.ca document lists $50,000 for up to two years, with limits such as a maximum of $1,000 for chiropractic care and $350 for massage or acupuncture. For a commuter from Evanston hurt in a winter collision on Stoney Trail, the practical difference is that care is not cut off by a dollar cap or a two-year window.
Care Based on the Type of Injury
Alberta.ca groups injuries into three types and says each one receives unlimited treatment that supports recovery under Care-First. Common injuries include sprains, strains and cuts. Serious injuries include broken bones, major whiplash and neurological complaints. Catastrophic injuries include quadriplegia, paraplegia and limb amputation, and for those Alberta.ca lists further support, such as critical care expenses, vehicle purchase or adaptation, and home accessibility renovations. Alberta.ca also says out-of-pocket expenses can be claimed automatically for common injuries and are included for serious and catastrophic injuries.
The Alberta.ca comparison document adds several practical benefits to the Care-First column, including reimbursement for travel and accommodation in line with guidelines, a daily meal allowance, critical care attendance and a clothing allowance. It shows none of these in the current accident benefits, which is why the change reaches well beyond the headline treatment and income figures.
Income Support While You Recover
Income replacement under Care-First, as Alberta.ca states it, is up to $125,000 per year until retirement. The Alberta.ca comparison document explains the formula as 90% of net income up to a maximum annual gross income of $125,000, and says benefits are payable in many situations, including full-time, part-time and temporary work, people between jobs, students, minors and the self-employed. The current system, by the same Alberta.ca document, pays the lesser of $600 per week and 80% of average gross weekly earnings, for a maximum of two years after the accident.
The comparison document also lists support that the current accident benefits do not include, such as lump sums for a student who loses a school year, weekly caregiver payments, and childcare expense reimbursement with receipts. For a Calgary household where one parent drives and the other stays home with young children, those lines can matter as much as the income figure.
If Someone Dies in a Collision
Alberta.ca says a spouse would receive up to $600,000 under Care-First without a court battle. The Alberta.ca comparison document ties the spouse or partner payment to the gross yearly income of the person who died, from a minimum of $75,623 up to that $600,000 maximum, and adds separate payments for dependants, a funeral benefit of up to $10,308, and grief counselling of up to $4,310 per person. Under the current system, the same Alberta.ca document lists $10,000, plus $15,000 for a spouse and $4,000 per child, with a funeral benefit of $6,150.
Can You Still Sue an At-Fault Driver Under Care-First
Yes, but only in limited cases. Alberta.ca says that under Care-First a person can sue if the at-fault driver is found guilty of certain serious offences, such as dangerous driving, impaired driving or fleeing from police. Under the current system, Alberta.ca says not-at-fault drivers can generally sue, except for narrowly defined minor injuries, while people hurt in single-vehicle collisions, or who caused the collision, cannot.
Alberta.ca presents this as a trade between lawsuits and benefits. Care-First replaces pain and suffering damages with benefits that start right away, and the page points out that legal claims under the current system can take years, with no certainty of success, and with awards reduced by expenses and legal fees. Whether that trade suits a particular injured person is a legal question, and this post does not answer it.
How At-Fault Drivers Are Still Held Accountable
Alberta.ca says Care-First will continue to hold at-fault drivers accountable through higher premiums, and through litigation if they are convicted of serious or criminal driving offences. The Government of Alberta’s comparison document says the same about higher premiums. For a Calgary driver, that means your record still matters under the new system. A collision you cause, or a conviction for a serious driving offence, can still follow you into your premium.
Important: This post explains what the Government of Alberta has published about Care-First. It is not legal advice. If you are injured in a collision, or you are unsure whether a claim or a lawsuit applies to you, speak with a lawyer about your own situation and with your insurer about the benefits on your policy.
What Alberta Says Care-First Means for Your Car Insurance Premiums
Alberta.ca’s news releases describe lower average costs under Care-First, but they describe provincial averages and projections, not the price of any one driver’s policy. In the March 27, 2026 release on Care-First savings, the Government of Alberta says a report projects savings of up to $366 per vehicle, per year, for Albertans with basic coverage. The same Alberta.ca release says that without the rate cap, the average cost of full auto insurance coverage could have exceeded $3,100 by January 1, 2027, and that with Care-First the average cost of auto insurance in 2027 is expected to be around $2,000 per policy.
The releases also explain how premiums will be set. Alberta.ca says premiums under Care-First will be determined by individual risk factors rather than market pressures, which it says means good drivers will pay less and bad drivers will pay more. Read together, these are the Alberta auto insurance changes for 2027 that matter most to your premium, a lower projected average and pricing tied more closely to your own risk.
The Adjusted Rate Cap From 2027
The May 14, 2026 Alberta.ca release introduces an adjusted rate cap alongside Care-First, coming into effect on January 1, 2027. According to that release, insurers will not be able to raise average rates by more than 5 per cent per year, and individual premiums cannot increase by more than 10 per cent at renewal. The release says the adjusted cap replaces the previous Good Driver Rate Cap and extends savings to more Albertans. It also says the Automobile Insurance Rate Board, which regulates auto insurance company rating programs under the Insurance Act, will continue monitoring insurer rating programs and profitability. Nate Horner, President of Treasury Board and Minister of Finance, is quoted in that release saying the government’s priority is making sure Care-First provides notable savings. Ask your broker how the individual cap applies to your own renewal and record.
What These Figures Do Not Tell You
None of these numbers is a quote. Alberta.ca’s $366 figure is a projected average for basic coverage, and its $2,000 figure is an expected average per policy. The $3,100 figure in the same release describes what Alberta.ca says the average for full coverage could have exceeded without the rate cap, not a price any driver was charged. Your own premium will still depend on your driving record, your vehicle, how you use it and the coverage you choose. When I review a renewal for a Calgary driver, I compare the new premium with the old one coverage by coverage, so you can see whether a change comes from the new system, your record or the options on the policy.
What to Watch For as Care-First Takes Effect
Care-First changes how injury benefits and lawsuits work, but several auto insurance decisions stay in your hands, and a few details are worth watching as insurers publish their 2027 policies.
Damage to your own vehicle. The Alberta.ca comparison document is about accident benefits for injured people. Damage to your own car is a separate question, so review collision and comprehensive coverage with your broker as you normally would.
Higher benefit endorsements. The comparison document says an insurance company may offer higher levels of coverage through endorsements to the standard policy. Ask what your insurer offers and whether it suits your income and your family.
Your driving record. Alberta.ca says good drivers will pay less and bad drivers will pay more, and that at-fault drivers stay accountable through higher premiums. Tickets and at-fault claims still count under the new system.
Collisions close to the changeover. If you are in a collision late in 2026 or early in 2027, ask your insurer which set of benefits applies to your claim rather than assuming.
New policy wording. Your 2027 policy documents will set out the Care-First benefits in your insurer’s own wording and layout. Read the renewal package with your broker rather than assuming it matches your 2026 policy, because wording varies by insurer.
What Calgary Drivers Should Review at Their 2027 Renewal
Your first renewal after January 1, 2027 is the natural time to check how Care-First appears on your policy and whether the rest of your coverage still fits your household. A short review with a broker covers the essentials, and the checklist below lists them.
When I go through a renewal with a Calgary driver, I start with the household, who drives, which vehicles, and what each person earns and depends on, because Alberta.ca ties Care-First income replacement and death benefits to income. Then I check the optional coverage, the discounts and the payment plan. Our guide to auto insurance discounts for Calgary drivers covers the discounts worth asking about in the same conversation.
Before that conversation, gather your current policy declarations page, your 2027 renewal notice when it arrives, each driver’s licence and claims history, and a rough idea of each earner’s income, because income drives several Care-First benefits. Having those details ready keeps the review short and specific to your household.
Your Calgary Care-First Renewal Checklist
Bring these points to your 2027 renewal conversation.
- Confirm the Care-First benefits shown in your 2027 policy documents and the date they apply from.
- Ask whether your insurer offers higher benefit endorsements and what each one adds.
- Check that every driver and vehicle in your household is listed accurately.
- Review collision, comprehensive and other optional coverage separately from the injury benefits.
- Compare your 2027 premium with your 2026 premium coverage by coverage.
- Ask how the adjusted rate cap described on Alberta.ca applies to your renewal.
- Re-check the discounts you qualify for, such as bundling home and auto or a safe driving program.
Why a Car Insurance Broker Helps With Alberta’s 2027 Changes
A broker helps because Care-First is new for every driver, and a broker can compare how several insurers present Care-First policies, endorsements and prices at your renewal, rather than showing you one company’s version. In Alberta, the Alberta Insurance Council licenses insurance agents and brokers, so the advice on your renewal comes from a licensed professional. Our October post on the difference between an insurance broker and an agent in Calgary explains how those two roles work. If you would rather stay with the insurer you have, a broker can still read the 2027 renewal with you and explain what changed.
A broker is also useful while the details are still settling. Insurers will publish their own 2027 wording, prices and endorsement options, and the Automobile Insurance Rate Board will keep monitoring rating programs, so the clearest picture of your own Alberta auto insurance premium will come at renewal, when real quotes can be compared side by side.
Bottom Line: Care-First starts January 1, 2027, and Alberta.ca says it brings unlimited reasonable treatment, income replacement of up to $125,000 a year until retirement, and a narrower right to sue. Your own premium still depends on your record and your coverage, so review your 2027 renewal with a broker rather than assuming a provincial average applies to you.
Review Your 2027 Auto Renewal With Affordable Quotes Insurance
Care-First changes how injury benefits work for Alberta drivers from January 1, 2027, and your first renewal under the new system deserves a careful look. Affordable Quotes Insurance is a licensed Calgary brokerage that compares car insurance from multiple insurance providers, explains how the Care-First benefits and any higher benefit endorsements appear on your policy, and checks your drivers, discounts and optional coverage line by line, so you know what changed and why. You get an answer based on your own policy and record, not a provincial average.
Call 403-401-8876 to talk through your renewal, or get a car insurance quote online for your Calgary vehicle.
Frequently Asked Questions
- When does Care-First auto insurance start in Alberta?
Care-First auto insurance starts on January 1, 2027, according to the Government of Alberta’s Care-First page on Alberta.ca. The province’s March 27, 2026 news release describes the new system as expected to launch on that date, and the May 14, 2026 release says the adjusted rate cap comes into effect alongside it on the same day. If your policy renews during 2027, your renewal documents from your insurer will show how the Care-First benefits appear on your policy. If you are in a collision close to the changeover, ask your insurer which set of benefits applies to your claim.
- Will Care-First lower my car insurance premium in Calgary?
It may, but Alberta.ca only gives provincial averages, not individual prices. The Government of Alberta’s March 27, 2026 release says a report projects savings of up to $366 per vehicle, per year, for drivers with basic coverage, and expects the average cost of auto insurance in 2027 to be around $2,000 per policy. Alberta.ca also says premiums will be set by individual risk factors, so good drivers will pay less and bad drivers will pay more. Your own premium depends on your record, your vehicle and your coverage, so compare real quotes at your renewal rather than relying on the average.
- Can I still sue another driver after January 1, 2027?
Only in limited cases. Alberta.ca says that under Care-First a person can sue if the at-fault driver is found guilty of certain serious offences, such as dangerous driving, impaired driving or fleeing from police. In most other collisions, injured people receive Care-First benefits instead of suing, and Alberta.ca says Care-First replaces pain and suffering damages with benefits that start right away. Whether a lawsuit is open to you in a particular case is a legal question, so speak with a lawyer about your own situation. This answer describes what the Government of Alberta has published, not legal advice.
- Does Care-First pay benefits if I caused the collision?
Yes, the Government of Alberta describes Care-First benefits as available to all Albertans injured in an accident, regardless of fault. Its comparison document on Alberta.ca says the system provides improved medical, rehabilitation and income support benefits regardless of fault, while continuing to hold at-fault drivers accountable through higher premiums. That is a real change from today, because Alberta.ca says people who are at fault, or hurt in single-vehicle collisions, cannot sue under the current system. Being at fault can still raise your premium, so your driving record continues to matter after January 1, 2027.
- How much income replacement does Care-First pay?
Alberta.ca lists Care-First income replacement of up to $125,000 per year until retirement. The Alberta.ca comparison document explains this as 90% of net income up to a maximum annual gross income of $125,000, with benefits payable for full-time, part-time and temporary workers, people between jobs, students, minors and the self-employed. Today, the same Alberta.ca document lists the lesser of $600 per week and 80% of average gross weekly earnings, for a maximum of two years. The document also says Care-First benefits will be indexed annually for inflation after the system starts, so the limits are expected to change over time.
- Does Care-First change coverage for damage to my car?
The Care-First material on Alberta.ca focuses on benefits for people injured in collisions, and its comparison document covers accident benefits only. It does not describe changes to the coverage that repairs or replaces your vehicle. Collision and comprehensive coverage remain decisions to review with your broker at renewal, based on your vehicle’s age and value, how you use it and the deductible you can manage. If your insurer changes its wording or options for 2027, your renewal package will show it, and your broker can explain any differences line by line.
- Should I talk to a broker about Care-First before my 2027 renewal?
Yes, a short review before or at your first 2027 renewal is a sensible step. A broker can show how different insurers present the Care-First benefits, whether any offer higher benefit endorsements, and how the adjusted rate cap described on Alberta.ca applies to your renewal. A broker can also check that every driver and vehicle is listed correctly and that you still receive the discounts you qualify for. In Alberta, brokers are licensed by the Alberta Insurance Council, so you can ask about your own policy and get advice from a licensed professional rather than relying on provincial averages.