On November 21, 2024, the Government of Alberta announced it will be implementing a "Care First" car insurance system starting January 1, 2027. This "Care First" system is a "no-fault" system that will be privately delivered by insurance companies
What is "no-fault"
The current system allows for Albertans who are injured in a car accident to sue the at-fault driver for their damages which includes pain and suffering, lost wages past and present, cost of treatment, loss of housekeeping ability, and out of pocket expenses related to their injuries.
A "no-fault" system removes an individual's ability to sue the other driver who caused the car accident through their insurance. Instead, the announced "Care First" model will require injured Albertans to look at their own insurance company for compensation at rates set by the government. Injured individuals will be forced to go through a similar system to that of Alberta's current WCB process where their insurer will decide what benefits, and how much money, they are entitled to.
When is a car accident considered "at-fault" in Alberta
The upcoming system still allows for Albertans to sue an "at-fault" individual, albeit in very limited situations. Injured individuals will still be able to sue the "at-fault" individual if the responsible party is convicted of a Criminal Code offence or certain Traffic Safety Act violations such as distracted or impaired driving. Albertans will also be able to sue for out-of-pocket expenses that exceed benefits offered under the "Care-First" model.
Present day
The new system will not be in effect until January 1, 2027. This means that any current claims or new claims that arise between now and December 31, 2026, will not be impacted. Any motor vehicle accidents that happen as of January 1, 2027, will have to go through the new "No-Fault" system.
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